PRINTER'S NO. 1541
THE GENERAL ASSEMBLY OF PENNSYLVANIA
SENATE BILL
No.
1037
Session of
2020
INTRODUCED BY DiSANTO, MENSCH, BAKER, TARTAGLIONE, REGAN,
PHILLIPS-HILL, MASTRIANO, PITTMAN, K. WARD, SCAVELLO AND
BARTOLOTTA, FEBRUARY 13, 2020
REFERRED TO FINANCE, FEBRUARY 13, 2020
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," in personal income tax, further providing for
special tax provisions for poverty.
The General Assembly of the Commonwealth of Pennsylvania
hereby enacts as follows:
Section 1. Section 304(d)(1) of the act of March 4, 1971
(P.L.6, No.2), known as the Tax Reform Code of 1971, is amended
and the subsection is amended by adding a clause to read:
Section 304. Special Tax Provisions for Poverty.--* * *
(d) Any claim for special tax provisions hereunder shall be
determined in accordance with the following:
(1) If the poverty income of the claimant during an entire
taxable year is [six thousand five hundred dollars ($6,500)] six
thousand eight hundred and twenty-five dollars ($6,825) or less,
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or, in the case of a married claimant, if the joint poverty
income of the claimant and the claimant's spouse during an
entire taxable year is [thirteen thousand dollars ($13,000)]
thirteen thousand six hundred and fifty dollars ($13,650) or
less, the claimant shall be entitled to a refund or forgiveness
of any moneys which have been paid over to (or would except for
the provisions of this act be payable to) the Commonwealth under
the provisions of this article, with an additional income
allowance of [nine thousand five hundred dollars ($9,500)] nine
thousand nine hundred and seventy-five dollars ($9,975) for each
dependent of the claimant. For purposes of this subsection, a
claimant shall not be considered to be married if:
(i) The claimant and the claimant's spouse file separate
returns; and
(ii) The claimant and the claimant's spouse live apart at
all times during the last six months of the taxable year or are
separated pursuant to a written separation agreement.
* * *
(4) For the tax year beginning after December 31, 2020, and
each tax year thereafter, the department shall increase the
poverty income amounts under clause (1) by applying the annual
cost-of-living adjustment calculated b y the percentage change in
the Consumer Price Index for All Urban Consumers (CPI-U) for the
Pennsylvania, New Jersey, Delaware and Maryland area for the
most recent twelve-month period for which figures have been
officially reported by the United States Department of Labor,
Bureau of Labor Statistics. The department shall apply the
increase to the current poverty income amounts immediately prior
to the date the adjustment is due to take effect. The percentage
change under this clause and the adjusted poverty income amounts
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under clause (1) shall be determined by the department before
the adjustment is due to take effect. The department shall round
up the adjusted poverty income amounts under clause (1) to the
nearest ten dollars ($10). The department shall transmit a
notice of the percentage change under this clause and the
adjusted poverty income amounts under clause (1) to the
Legislative Reference Bureau for publication in the Pennsylvania
Bulletin no later than ten days from the date the department
determines the adjustment. The department may not decrease the
poverty income amounts under clause (1) as a result of a
negative percentage change in the annual cost-of-living
adjustment in the Consumer Price Index for All Urban Consumers
(CPI-U) for the Pennsylvania, New Jersey, Delaware and Maryland
area.
Section 2. The amendment of section 304(d)(1) of the act
shall apply to tax years beginning after December 31, 2019.
Section 3. This act shall take effect in 60 days.
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