THE GENERAL ASSEMBLY OF PENNSYLVANIA

HOUSE BILL

INTRODUCED BY ADOLPH, HARRIS, KILLION, BAKER, BOYD, CALTAGIRONE, CARROLL, COHEN, D. COSTA, DeLUCA, DENLINGER, J. EVANS, FLECK, GABLER, GEIST, GEORGE, GIBBONS, GINGRICH, GOODMAN, GRELL, HALUSKA, HARHART, HESS, HICKERNELL, M.K. KELLER, KOTIK, KULA, MAJOR, MANN, MARSICO, MILLARD, MILLER, MILNE, M. O'BRIEN, O'NEILL, PEIFER, PETRARCA, PICKETT, QUIGLEY, SABATINA, SANTONI, SCAVELLO, STEVENSON, SWANGER, J. TAYLOR, VULAKOVICH, WAGNER AND WATSON, FEBRUARY 14, 2011

REFERRED TO COMMITTEE ON FINANCE, FEBRUARY 14, 2011  

AN ACT

Amending the act of June 27, 2006 (1st Sp.Sess., P.L.1873,

No.1), entitled "An act providing for taxation by school

districts, for the State funds formula, for tax relief in

first class cities, for school district choice and voter

participation, for other school district options and for a

task force on school cost reduction; making an appropriation;

prohibiting prior authorized taxation; providing for

installment payment of taxes; restricting the power of

certain school districts to levy, assess and collect taxes;

and making related repeals," further providing for the

definition of "income"; and providing for the definition of

"Social Security substitute pension."

The General Assembly of the Commonwealth of Pennsylvania

hereby enacts as follows:

Section 1.  The definition of "income" in section 1303 of the

act of June 27, 2006 (1st Sp.Sess., P.L.1873, No.1), known as

the Taxpayer Relief Act, is amended and the section is amended

by adding a definition to read:

Section 1303.  Definitions.

The following words and phrases when used in this chapter

shall have the meanings given to them in this section unless the

context clearly indicates otherwise:

* * *

"Income."  All income from whatever source derived,

including, but not limited to:

(1)  Salaries, wages, bonuses, commissions, income from

self-employment, alimony, support money, cash public

assistance and relief.

(2)  The gross amount of any pensions or annuities,

including railroad retirement benefits for calendar years

prior to 1999 and 50% of railroad retirement benefits for

calendar years 1999 [and thereafter] through 2009.

(3)  All benefits received under the Social Security Act

(49 Stat. 620, 42 U.S.C. § 301 et seq.), except Medicare

benefits, for calendar years prior to 1999, and 50% of all

benefits received under the Social Security Act, except

Medicare benefits, for calendar years 1999 [and thereafter]

through 2009.

(4)  All benefits received under State unemployment

insurance laws and veterans' disability payments.

(5)  All interest received from the Federal or any state

government or any instrumentality or political subdivision

thereof.

(6)  Realized capital gains and rentals.

(7)  Workers' compensation.

(8)  The gross amount of loss of time insurance benefits,

life insurance benefits and proceeds, except the first $5,000

of the total of death benefit payments.

(9)  Gifts of cash or property, other than transfers by

gift between members of a household, in excess of a total

value of $300.

The term does not include surplus food or other relief in kind

supplied by a governmental agency, property tax or rent rebate

or inflation dividend. For calendar years 2010 and thereafter,

"income" shall not include 50% of all benefits received under

the Social Security Act, except Medicare benefits, and 50% of

any Social Security substitute pension.

* * *

"Social Security substitute pension."  A pension received as

a result of a person's employment by a government entity or an

instrumentality of a government entity if such pension is, in

whole or in part, provided in lieu of old age and survivors

benefit payments under the Social Security Act (49 Stat. 620, 42

U.S.C. § 301 et seq.). The term includes Tier I railroad

retirement benefits. The amount of the pension that qualifies as

a "Social Security substitute pension" shall not exceed the

maximum Federal old age and survivors benefit payments to which

an individual eligible for such payments would be entitled, less

any Federal old age and survivors benefit payments received

under the Social Security Act for employment covered under such

act.

* * *

Section 2.  This act shall apply to claims filed for calendar

year 2011 and each year thereafter.

Section 3.  This act shall take effect immediately.