Court ruling on taxpayer challenge could hurt tuition tax credits

Published: 2004-06-14

WASHINGTON (CNS) -- A June 14 Supreme Court ruling that said taxpayers can use federal courts to challenge state taxes could jeopardize tuition tax credit programs which benefit parents of private school students in Arizona and other states. The 5-4 ruling focused on a group of Arizona taxpayers who sued their state in federal court, arguing that the state's tuition tax credits promote religion. Since 1997, Arizona has allowed residents to allocate tax contributions to help with school tuition fees. Instead of providing school vouchers, the state offers individuals a $500 tax credit and couples a $625 tax credit if they contribute to a private charity that uses the money to pay tuition for eligible students at a private school. The Arizona Supreme Court ruled in favor of the program five years ago, and Ronald Johnson, executive director of the Arizona Catholic Conference, public policy arm of the state's bishops, was confident the U.S. Supreme Court would uphold the decision. "I hoped we would put the final nail in the coffin on this," he told Catholic News Service, in reference to ending the constant legal battles the tax credit program has faced. "But unfortunately, that didn't happen," he added.

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