PRINTER'S NO. 1774
No. 1470 Session of 2001
INTRODUCED BY STERN, GEORGE, PETRARCA, MARKOSEK, GODSHALL,
M. BAKER, BARRAR, ARMSTRONG, DeWEESE, HENNESSEY, WILT,
L. I. COHEN, WALKO, CAPPABIANCA, HERMAN, CALTAGIRONE,
BENNINGHOFF, JAMES, CAWLEY, DeLUCA, SOLOBAY, YOUNGBLOOD,
J. TAYLOR, McILHATTAN, READSHAW, J. EVANS, SEMMEL, TIGUE,
PIPPY, PRESTON, SAYLOR, WANSACZ, GEIST, CREIGHTON,
HUTCHINSON, LAUGHLIN, E. Z. TAYLOR, S. MILLER, TRICH, MELIO,
McCALL, THOMAS, WOJNAROSKI, SHANER, BROWNE, YUDICHAK,
BELFANTI, HERSHEY, SCRIMENTI, ZUG, TRELLO, FREEMAN, ROSS,
HARHAI AND ROBERTS, MAY 1, 2001
REFERRED TO COMMITTEE ON FINANCE, MAY 1, 2001
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," further defining "poverty income" for purposes of
11 personal income tax.
12 The General Assembly of the Commonwealth of Pennsylvania
13 hereby enacts as follows:
14 Section 1. Section 301(o.2) of the act of March 4, 1971
15 (P.L.6, No.2), known as the Tax Reform Code of 1971, amended
16 December 31, 1991 (P.L.373, No.40), is amended to read:
17 Section 301. Definitions.--The following words, terms and
18 phrases when used in this article shall have the meaning
1 ascribed to them in this section except where the context
2 clearly indicates a different meaning. Unless specifically
3 provided otherwise, any reference in this article to the
4 Internal Revenue Code shall include the Internal Revenue Code of
5 1986 (Public Law 99-514, 26 U.S.C. § 1 et seq.), as amended to
6 January 1, 1997:
7 * * *
8 (o.2) "Poverty income" means for the purpose of determining
9 eligibility for special tax provisions all moneys or property
10 (including interest, gains or income derived from obligations
11 which are statutorily free from State or local taxation under
12 any other act of the General Assembly of the Commonwealth of
13 Pennsylvania or under the laws of the United States) received of
14 whatever nature and from whatever source derived, but not
15 including (i) periodic payments for sickness and disability
16 other than regular wages received during a period of sickness or
17 disability; or (ii) disability, retirement or other payments
18 arising under workmen's compensation acts, occupational disease
19 acts and similar legislation by any government; or (iii)
20 payments commonly recognized as old age or retirement benefits
21 paid to persons retired from service after reaching a specific
22 age or after a stated period of employment; or (iv) payments
23 commonly known as public assistance or unemployment compensation
24 payments by any governmental agency; or (v) payments to
25 reimburse actual expenses; or (vi) payments made by employers or
26 labor unions for programs covering hospitalization, sickness,
27 disability or death, supplemental unemployment benefits, strike
28 benefits, Social Security and retirement; or (vii) any
29 compensation received by United States servicemen serving in a
30 combat zone. "Poverty income" shall be reduced by the medical
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1 and dental expenses deducted on the taxpayer's Federal income
2 tax return under section 213 of the Internal Revenue Code of
3 1986 (Public Law 99-514, 26 U.S.C. § 1 et seq.).
4 * * *
5 Section 2. This act shall apply to taxable years commencing
6 on or after December 31, 2000.
7 Section 3. This act shall take effect immediately.
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