THE GENERAL ASSEMBLY OF PENNSYLVANIA

HOUSE BILL

INTRODUCED BY BEAR, AUMENT, BOYD, BROOKS, COHEN, CUTLER, DeLUCA, DENLINGER, FLECK, GABLER, GEIST, GILLEN, GINGRICH, GROVE, HARRIS, HESS, HICKERNELL, KAUFFMAN, LONGIETTI, MAJOR, MILLER, MUNDY, MURT, PICKETT, PYLE, RAPP, REICHLEY, SCHRODER, STERN, SWANGER, VULAKOVICH, YOUNGBLOOD, DAVIDSON AND QUINN, FEBRUARY 14, 2011

AS AMENDED ON SECOND CONSIDERATION, HOUSE OF REPRESENTATIVES, MAY 9, 2012   

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," further providing for the procedure for claiming

special tax provisions and for proof of eligibility.

The General Assembly of the Commonwealth of Pennsylvania

hereby enacts as follows:

Section 1.  Sections 336.1 and 336.2 of the act of March 4,

1971 (P.L.6, No.2), known as the Tax Reform Code of 1971, added

March 13, 1974 (P.L.179, No.32), are amended to read:

Section 336.1.  Procedure for Claiming Special Tax

Provisions.--[The] (a)  With the exception of the expedited

claim procedure as provided for under subsection (b), the 

following procedures shall be employed for claiming the special

tax provisions:

(1)  The claimant may claim the special tax provisions upon

the expiration of his taxable year in connection with his filing

of an annual return under the provisions of this article.

Notwithstanding any other provisions of this article to the

contrary, the department shall have the power to promulgate such

rules or regulations as it may deem necessary to fairly and

reasonably implement the provisions of this section.

(2)  If the claimant receives income as defined in this

article, other than compensation from an employer, he may claim

the special tax provisions in connection with his filing of

estimated tax returns.

(b)  (1)  The claimant may claim the special tax provisions

upon the expiration of the claimant's taxable year by filing a

certification of no tax liability in lieu of filing a tax

return, provided all of the following apply:

(i)  The poverty income of the claimant, or the joint poverty

income of the claimant and claimant's spouse, for the taxable

year, does not exceed the poverty income limitations prescribed

by section 304(d)(1).

(ii)  The claimant is entitled to one hundred per cent tax

forgiveness for the taxable year under section 304.

(iii)  The claimant was not subject to tax withholding

pursuant to this article in the taxable year.

(iv)  No tax was withheld on account of the claimant pursuant

to this article in the taxable year.

(v)  The claimant was not subject to the estimated tax

payment requirements under this article in the taxable year.

(vi)  The claimant made no estimated tax payments in the

taxable year.

(vii)  The claimant is not entitled to a tax refund for the

taxable year.

(viii)  The filing status of the claimant has not changed

from the preceding tax year.

(ix)  The claimant incurred no personal income tax liability

and was entitled to one hundred per cent tax forgiveness for the

preceding tax year under section 304 and claimed such tax

forgiveness by filing the appropriate tax schedule for the tax

year.

(2)  The furnishing of false information on the certification

by the claimant shall constitute a violation of 18 Pa.C.S. §

4904 (relating to unsworn falsification to authorities). Any

person who wilfully aids or assists in, or procures, counsels or

advises the preparation or presentation of a certification which 

the person knew or should have known is fraudulent or is false

<--

as to any material matter commits a misdemeanor and shall, upon

conviction, be sentenced to pay a fine not exceeding five

thousand dollars ($5,000) or to undergo imprisonment not

exceeding two years, or both.

(3)  The department shall establish the form of the

certification that may be filed in lieu of a tax return under

this subsection. The certification form shall require that the

claimant indicate whether the certification is for an individual

or a joint return and,; whether there are any other dependents

<--

and if so the number of dependents; and whether the claimant

<--

qualified for senior citizens property tax and rent rebate

assistance as provided in Chapter 13 of the act of June 27, 2006

(1st Sp.Sess., P.L.1873, No.1), known as the "Taxpayer Relief

Act," or for pharmaceutical assistance for the elderly, as

provided in Chapter 5 of the act of August 26, 1971 (P.L.351,

No.91), known as the "State Lottery Law," during the prior

taxable year. The department shall develop rules, regulations

and procedures as it deems necessary to fairly and reasonably

implement the provisions of this subsection in a simple and

expeditious fashion. In establishing and developing the

certification form and rules, regulations and procedures, the

department shall not require the submission of any additional

form, return, report or schedule as a prerequisite or condition

to utilization of this expedited procedure for claiming special

tax forgiveness.

(4)  Nothing in this subsection shall be construed to lessen

or curtail the power of the department to conduct examinations

under section 355 whenever such examinations are deemed

warranted in appropriate circumstances to ensure compliance with

this article.

Section 336.2.  Proof of Eligibility.--The Department of

Revenue shall establish such rules, regulations, schedules or

other procedures as may be necessary for the submission and

establishment of proof of the eligibility of persons for the

special tax provisions or other matters relating to the

provisions of this act. [Such] Except as limited by the

provisions of section 336.1(b)(3), the procedures may include,

but not be limited to, the submission of requisite information

and certifications upon forms provided by the department,

including such special tax return or report forms as may be

necessary.

Section 2.  This act shall apply to tax years commencing on

or after January 1, 2011.

Section 3.  This act shall take effect immediately.