|Posted:||March 9, 2015 02:03 PM|
|From:||Senator Gene Yaw|
|To:||All Senate members|
|Subject:||Income for Property Tax/Rent Rebate Purposes|
|In the near future, I will be introducing legislation clarifying that annuities remain included as income for Property Tax/Rent Rebate (PTRR) purposes, only to the extent of the taxable portion of the distribution from the annuity.
Current law requires PTRR applicants to include the gross amount (not the taxable amount) of annuities when applying for PTRR rebates.
As background, I was recently contacted by a constituent who brought forward concerns regarding the definition of “income” for purposes of determining eligibility for the PTRR application. Because the PTRR program has income limits, some seniors could be disqualified because they are required to report their gross annuity distribution, which includes part of the return on the purchase cost, and part income.
Additionally, some seniors could be denied a rebate due to the fact that they received a distribution from an annuity, which was ultimately then reinvested in another retirement security – despite the fact that the senior citizen had yet to actually receive the income.
Redefining this provision in law will ensure that some senior citizens across the Commonwealth would still be eligible for the Property Tax/Rent Rebate Program.
I ask you to join me in cosponsoring this legislation.
If you have any questions, please contact Nick Troutman of my staff at (717) 787-3280.
Introduced as SB682