Districts may account for extracurricular activities fees tax credit monies in Fund 525—Auxiliary Operations or Fund 526—Extracurricular Activities Fees Tax Credit. Tax credit monies may be deposited directly with the county treasurer in either fund, deposited in the Auxiliary Operations Fund bank account, or deposited in miscellaneous receipts clearing bank accounts. Any tax credit monies deposited in miscellaneous receipts clearing bank accounts should be remitted monthly to the county treasurer for deposit in Fund 525 or Fund 526.
Regardless of which fund or account a district chooses to use for tax credit monies, the district must maintain detailed accounting records to ensure that tax credit monies are used only for allowable expenditures and in support of both the school and purpose designated by the taxpayer. If districts receive tax credit contributions that are not designated for a specific purpose, the applicable school's site council must determine how the contributions may be used in support of the school's eligible activities.
