THE GENERAL ASSEMBLY OF PENNSYLVANIA

HOUSE BILL

INTRODUCED BY HENNESSEY, ADOLPH, BAKER, BARRAR, BOYD, BRENNAN, CARROLL, CREIGHTON, FLECK, GEIST, GIBBONS, GINGRICH, GRELL, GROVE, KILLION, KORTZ, McILVAINE SMITH, METZGAR, MILNE, MOUL, MURT, PERZEL, PHILLIPS, PYLE, QUINN, SCAVELLO, SIPTROTH, K. SMITH, SWANGER, VULAKOVICH, WALKO, WATSON AND YOUNGBLOOD, MARCH 3, 2009

REFERRED TO COMMITTEE ON FINANCE, MARCH 3, 2009  

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 defining "household

income" and "income."

The General Assembly of the Commonwealth of Pennsylvania

hereby enacts as follows:

Section 1.  The definitions of "household income" and

"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, are

amended 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:

* * *

"Household income."  All income received by a claimant and

the claimant's spouse while residing in the homestead during the

calendar year for which a rebate is claimed. A deduction may be

applied when calculating household income for each dependent in

the homestead. This deduction shall equal the amount provided as

a deduction for personal exemptions for dependents in section

151 of the Internal Revenue Code of 1986 (Public Law 99-514, 26

U.S.C. § 151). Only one deduction shall be allowed per

dependent.

"Income."  [All] As follows:

(1)  Subject to the limitation in paragraph (3), all 

income from whatever source derived, including, but not

limited to:

[(1)] (i)  Salaries, wages, bonuses, commissions,

income from self-employment, alimony, support money, cash

public assistance and relief.

[(2)] (ii)  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.

[(3)] (iii)  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.

[(4)] (iv)  All benefits received under State

unemployment insurance laws and veterans' disability

payments.

[(5)] (v)  All interest received from the Federal or

any state government or any instrumentality or political

subdivision thereof.

[(6)] (vi)  Realized capital gains and rentals.

[(7)] (vii)  Workers' compensation.

[(8)] (viii)  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)] (ix)  Gifts of cash or property, other than

transfers by gift between members of a household, in

excess of a total value of $300.

(2)  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.

(3)  No more than 50% of any form of disability income

shall be included as income.

* * *

Section 2.  This act shall take effect in 60 days.