PRINTER'S NO. 1449
No. 1262 Session of 1991
INTRODUCED BY FLICK, HALUSKA, LANGTRY, KOSINSKI, KENNEY,
MICOZZIE, GANNON, SEMMEL, DALEY, HARPER, NAHILL, FARMER, FOX,
BUNT, JAMES, GEIST, STRITTMATTER, E. Z. TAYLOR, NOYE,
JOHNSON, ALLEN AND MAYERNIK, APRIL 23, 1991
REFERRED TO COMMITTEE ON FINANCE, APRIL 23, 1991
AN ACT
1 Amending the act of March 4, 1971 (P.L.6, No.2), entitled "An
2 act relating to tax reform and State taxation by codifying
3 and enumerating certain subjects of taxation and imposing
4 taxes thereon; providing procedures for the payment,
5 collection, administration and enforcement thereof; providing
6 for tax credits in certain cases; conferring powers and
7 imposing duties upon the Department of Revenue, certain
8 employers, fiduciaries, individuals, persons, corporations
9 and other entities; prescribing crimes, offenses and
10 penalties," providing for special income tax provisions for
11 senior citizens who are entitled to limited pension incomes.
12 The General Assembly of the Commonwealth of Pennsylvania
13 hereby enacts as follows:
14 Section 1. The act of March 4, 1971 (P.L.6, No.2), known as
15 the Tax Reform Code of 1971, is amended by adding a section to
16 read:
17 Section 304.1. Special Tax Provisions for Senior Citizens
18 with Limited Pension Incomes.--(a) The General Assembly, in
19 recognition of the powers contained in section 2(b)(ii) of
20 Article VIII of the Constitution of Pennsylvania, which provides
21 therein for the establishing as a class or classes of subjects
1 of taxation the property or privileges of persons who, because
2 of age, are determined to be in need of special tax provisions,
3 hereby declares as its legislative intent and purpose to
4 implement such power under such constitutional provisions by
5 establishing special tax provisions as hereinafter provided in
6 this act.
7 (b) For the tax year 1991 and each year thereafter, senior
8 citizens who meet the standards of eligibility established by
9 this act as the test for inequitable taxation shall be deemed a
10 separate class or subject of taxation and, as such, shall be
11 entitled to the benefits of the special provisions of this act.
12 (c) Any claim for special tax provisions hereunder shall be
13 determined in accordance with the following:
14 (1) Senior citizens with total income not exceeding
15 seventeen thousand five hundred dollars ($17,500) and whose
16 Pennsylvania filing status is single or married filing
17 separately may exclude from Pennsylvania taxable interest and
18 dividends an amount equal to seventeen thousand five hundred
19 dollars ($17,500) minus pension income actually received in the
20 current tax year.
21 (2) Senior citizens with total income not exceeding thirty-
22 five thousand dollars ($35,000) and whose Pennsylvania filing
23 status is married filing jointly may exclude from Pennsylvania
24 taxable interest and dividends an amount equal to thirty-five
25 thousand dollars ($35,000) minus pension income actually
26 received in the current tax year.
27 (d) The following words, terms and phrases when used in this
28 section shall have the meaning ascribed to them in this section,
29 unless the context clearly indicates a different meaning:
30 "Income" shall have the meaning as defined in the act of
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1 March 11, 1971 (P.L.104, No.3), known as the "Senior Citizen
2 Rebate and Assistance Act."
3 "Pension income" means income received by payments commonly
4 recognized as old age or retirement benefits paid to persons
5 retired from service after reaching a specific age or after a
6 stated period of employment. For purposes of this section, the
7 term "pension income" shall not include Social Security payments
8 made by the Federal Government.
9 "Senior citizen" means an individual who is fifty-nine years
10 of age or older in the tax year in which the Pennsylvania
11 taxable interest and dividend income is to be excluded. In the
12 case when excludable income is derived by a husband and wife who
13 file a joint return for the taxable year and one spouse
14 satisfies the age requirements set forth in this clause, then
15 both the husband and wife shall be treated as satisfying the age
16 requirement.
17 (e) The department shall promulgate the necessary rules and
18 regulations to implement the provisions of this section.
19 Section 2. This act shall take effect January 1, 1992.
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