AZ HB2608

Transfers administration of school tuition scholarship programs from private school tuition organizations to the Arizona Department of Revenue, effective June 30, 2017.

Increases the percentage of contributions required to be used for scholarships from 90 percent to 95 percent, with the department retaining up to 5 percent for administration costs.

Allows the Department of Revenue to receive contributions directly and award scholarships rather than requiring private organizations to manage the process; removes donor designation restrictions that previously applied to school tuition organizations.

Maintains existing tax credit amounts and income limits for individual taxpayers ($500-$1,000 depending on filing status) and corporate/insurance premium taxpayers, with contributions capped at $10 million annually for low-income scholarships and $5 million for scholarships for displaced students and students with disabilities.

Requires the Department of Revenue to post annual reports on its website showing contribution amounts, number of scholarships awarded, and demographic information about scholarship recipients, rather than requiring individual organizations to report separately.