School Taxes Law and Legal Definition

School tax laws very by state and local area. School districts typically collect taxes through payment of local residents' property taxes. Some school property taxes are tied to a home's value. Critics argue that such school property tax systems unfairly advantage those schools in wealthy areas because of higher home values which lead to more taxes being collected for their area schools.

Some states allow a tax credit for those who make cash contributions or pay fees to a public school for support of extra curricular activities or for character education programs. Other laws may allow a credit for cash contributions to a tuition organization that provides scholarships or grants to qualified schools. One state allows a $1,000-per-student tax credit that can be used by parents to offset the cost of supplies and items such as textbooks, transportation, tutoring, computer hardware and software, and education summer school and camps. At least one state has proposed a “universal” tuition tax credit that would allow any taxpayer – individual or corporate – to claim a tax credit for tuition paid on behalf of a student.