THE GENERAL ASSEMBLY OF PENNSYLVANIA

HOUSE BILL

INTRODUCED BY SCAVELLO, BARRAR, BOYD, CARROLL, GEIST, GROVE, HARKINS, KILLION, KORTZ, D. O'BRIEN, O'NEILL, READSHAW, REICHLEY AND WATSON, JANUARY 25, 2011

REFERRED TO COMMITTEE ON FINANCE, JANUARY 25, 2011  

AN ACT

Amending the act of March 4, 1971 (P.L.6, No.2), entitled "An

act relating to tax reform and State taxation by codifying

and enumerating certain subjects of taxation and imposing

taxes thereon; providing procedures for the payment,

collection, administration and enforcement thereof; providing

for tax credits in certain cases; conferring powers and

imposing duties upon the Department of Revenue, certain

employers, fiduciaries, individuals, persons, corporations

and other entities; prescribing crimes, offenses and

penalties," further providing for classes of income.

The General Assembly of the Commonwealth of Pennsylvania

hereby enacts as follows:

Section 1.  Section 303 of the act of March 4, 1971 (P.L.6,

No.2), known as the Tax Reform Code of 1971, is amended by

adding a subsection to read:

Section 303.  Classes of Income.--* * *

(a.8)  The following shall apply:

(1)  An amount equal to seventy-five per cent of the amount

paid as dues to a homeowners association shall be deductible

from taxable income on the annual personal income tax return.

The amount paid as dues to a homeowners association allowable as

a deduction under this subsection shall not result in taxable

income being less then zero.

(2)  For purposes of this subsection:

(i)  The term "homeowners association" shall mean a legal

entity created for the purpose of developing and managing a

community of homes. Characteristics of a "homeowners

association" shall include the authority to enforce covenants,

conditions and restrictions of the community and the authority

or responsibility to manage common amenities of the community.

(ii)  The term "dues" shall mean any fee or payment required

of a homeowner for membership and participation in a homeowners

association.

* * *

Section 2.  The addition of section 303(a.8) of the act shall

apply to taxable years beginning after December 31, 2011.

Section 3.  This act shall take effect January 1, 2012, or

immediately, whichever is later.