1Amending the act of June 27, 2006 (1st Sp.Sess., P.L.1873,
2No.1), entitled "An act providing for taxation by school
3districts, for the State funds formula, for tax relief in
4first class cities, for school district choice and voter
5participation, for other school district options and for a
6task force on school cost reduction; making an appropriation;
7prohibiting prior authorized taxation; providing for
8installment payment of taxes; restricting the power of
9certain school districts to levy, assess and collect taxes;
10and making related repeals," further providing for
11definitions.

12The General Assembly of the Commonwealth of Pennsylvania
13hereby enacts as follows:

14Section 1. The definition of "income" in section 1303 of the
15act of June 27, 2006 (1st Sp.Sess., P.L.1873, No.1), known as
16the Taxpayer Relief Act, is amended to read:

17Section 1303. Definitions.

18The following words and phrases when used in this chapter
19shall have the meanings given to them in this section unless the
20context clearly indicates otherwise:

1* * *

2"Income." All income from whatever source derived,
3including, but not limited to:

4(1) Salaries, wages, bonuses, commissions, income from
5self-employment, alimony, support money, cash public
6assistance and relief.

7(2) The gross amount of any pensions or annuities,
8including railroad retirement benefits for calendar years
9prior to 1999 and 50% of railroad retirement benefits for
10calendar years 1999 and thereafter.

11(3) All benefits received under the Social Security Act
12(49 Stat. 620, 42 U.S.C. § 301 et seq.), except Medicare
13benefits, for calendar years prior to 1999, and 50% of all
14benefits received under the Social Security Act, except
15Medicare benefits, for calendar years 1999 and thereafter.

16(4) All benefits received under State unemployment
17insurance laws and veterans' disability payments.

18(5) All interest received from the Federal or any state
19government or any instrumentality or political subdivision
20thereof.

21(6) Realized capital gains and rentals.

22(7) Workers' compensation.

23(8) The gross amount of loss of time insurance benefits,
24life insurance benefits and proceeds, except the first
25[$5,000] $10,000 of the total of death benefit payments.

26(9) Gifts of cash or property, other than transfers by
27gift between members of a household, in excess of a total
28value of $300.

29The term does not include surplus food or other relief in kind
30supplied by a governmental agency, property tax or rent rebate

1or inflation dividend.

2* * *

3Section 2. This act shall take effect in 60 days.