PRINTER'S NO. 3347
THE GENERAL ASSEMBLY OF PENNSYLVANIA
HOUSE BILL
No.
2261
Session of
2018
INTRODUCED BY SNYDER AND MADDEN, APRIL 16, 2018
REFERRED TO COMMITTEE ON FINANCE, APRIL 16, 2018
AN ACT
Providing for supplemental State-funded tax relief; establishing
the Personal Income Tax Property Tax Reduction Fund; and
providing for distributions from fund.
TABLE OF CONTENTS
Chapter 1. Preliminary Provisions
Section 101. Short title.
Section 102. Definitions.
Chapter 3. Personal Income Tax Property Tax Reduction Fund
Section 301. Establishment.
Section 302. Nonlapse.
Chapter 5. State Taxation
Section 501. Personal income surtax.
Section 502. Construction.
Section 503. Notification of personal income surtax.
Section 504. Transfer to fund.
Chapter 7. (Reserved)
Chapter 9. Homestead and Farmstead Exclusion
Section 901. Homestead and farmstead exclusion process.
Section 902. School district tax notices.
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Chapter 11. (Reserved)
Chapter 13. Distributions from Fund
Section 1301. State allocation to cities of the first class.
Section 1302. Property tax reduction allocation.
Chapter 15. Miscellaneous Provisions
Section 1501. (Reserved).
Section 1502. Effective date.
The General Assembly of the Commonwealth of Pennsylvania
hereby enacts as follows:
CHAPTER 1
PRELIMINARY PROVISIONS
Section 101. Short title.
This act shall be known and may be cited as the Supplemental
Homeowner Property Tax Relief Act.
Section 102. Definitions.
The following words and phrases when used in this act shall
have the meanings given to them in this section unless the
context clearly indicates otherwise:
"Department." The Department of Revenue of the Commonwealth.
"Farmstead." As defined in 53 Pa.C.S. § 8582 (relating to
definitions).
"Fund." The Personal Income Tax Property Tax Reduction Fund.
"Homestead." As defined in 53 Pa.C.S. § 8401 (relating to
definitions).
"School district." A school district of the first class,
first class A, second class, third class or fourth class.
"School district of the first class." Includes the governing
body of a city of the first class.
"Secretary." The Secretary of Revenue of the Commonwealth.
"Tax Reform Code." The act of March 4, 1971 (P.L.6, No.2),
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known as the Tax Reform Code of 1971.
"Taxpayer Relief Act." The act of June 27, 2006 (1st
Sp.Sess., P.L.1873, No.1), known as the Taxpayer Relief Act.
CHAPTER 3
PERSONAL INCOME TAX PROPERTY TAX REDUCTION FUND
Section 301. Establishment.
There is established in the State Treasury a restricted
receipts account to be known as the Personal Income Tax Property
Tax Reduction Fund.
Section 302. Nonlapse.
The money in the fund is appropriated on a continuing basis
to the department for the purposes specified in section 701 and
Chapter 13, and shall not lapse at the end of any fiscal year.
CHAPTER 5
STATE TAXATION
Section 501. Personal income surtax.
In addition to the tax imposed under Article III of the Tax
Reform Code, there shall be a surtax equal to 0.83% imposed on
the taxable income of resident and nonresident individuals as
provided for under Article III of the Tax Reform Code. The
surtax shall be in addition to the tax imposed under Article III
of the Tax Reform Code.
Section 502. Construction.
The personal income surtax imposed by this chapter shall be
in addition to any tax imposed under Article III of the Tax
Reform Code. The provisions of Article III of the Tax Reform
Code shall apply to the definitions, imposition and
implementation of the surtax.
Section 503. Notification of personal income surtax.
The department shall publish the personal income tax rate
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along with the personal income surtax rate in the next
succeeding publication of the Pennsylvania Bulletin following
the effective date of this section.
Section 504. Transfer to fund.
Within 30 days of the close of any calendar month, all
revenue generated in the previous month from the personal income
surtax imposed under this chapter shall be transferred to the
fund.
CHAPTER 7
(Reserved)
CHAPTER 9
HOMESTEAD AND FARMSTEAD EXCLUSION
Section 901. Homestead and farmstead exclusion process.
(a) Calculation.--Each year in which a school district
receives a local property tax reduction allocation pursuant to
this act or the Taxpayer Relief Act, the school district shall
calculate a homestead and farmstead exclusion which is equal to
the amount necessary to fully fund the maximum amount of
homestead or farmstead exclusion under 53 Pa.C.S. § 8586
(relating to limitations).
(b) Resolution.--The school district shall adopt a
resolution implementing the homestead and farmstead exclusion
calculated under subsection (a). The resolution shall state the
maximum amount of homestead or farmstead exclusion an owner of a
homestead or farmstead may receive. A resolution may not
authorize a homestead or farmstead exclusion which exceeds the
amount under 53 Pa.C.S. § 8586. The requirements of this
subsection shall not be construed to require more than one
resolution adoption for implementing homestead and farmstead
exclusions. Where such requirements exist in other acts, they
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shall be administered in conjunction with this subsection.
Section 902. School district tax notices.
(a) Tax notice.--School districts shall itemize the
homestead and farmstead exclusion on tax bills sent to homestead
and farmstead owners, indicating the original amount of real
property tax liability, the amount of the exclusion and the net
amount of tax due after the exclusion is applied. The tax bill
shall be easily understandable and include a notice under
subsection (b).
(b) Notice of property tax relief.--School districts shall
include with the homestead or farmstead owner's tax bill a
notice that the tax bill includes a homestead or farmstead
exclusion.
CHAPTER 11
(Reserved)
CHAPTER 13
DISTRIBUTIONS FROM FUND
Section 1301. State allocation.
The department shall pay from the fund a State allocation to
a school district of the first class for use by the city of the
first class for the reimbursement of lost real property tax
revenues under the act of July 2, 1996 (P.L.529, No.91),
entitled "An act implementing the provisions of section 2(b)(ii)
of Article VIII of the Constitution of Pennsylvania by
authorizing cities of the first class to provide for special tax
provisions relating to real property taxes for certain persons
who meet the established standards and qualifications for age
and poverty," and 53 Pa.C.S. § 8584 (relating to administration
and procedure), to provide for homestead and farmstead
exclusions.
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Section 1302. Property tax reduction allocations.
(a) Duty of Secretary of the Budget.--
(1) No later than April 15, 2018, and April 15 of each
year thereafter, the Secretary of the Budget shall certify
the total amount of revenue in the fund.
(2) In certifying the amount available for distribution
under subsection (e), the Secretary of the Budget shall only
certify an amount that is sustainable in subsequent years.
(3) If the actual revenue deposited into the fund during
the six months following the date on which the certification
is made exceeds projections, any revenue in excess of
projections shall remain in the fund and may be included in
the certification for the subsequent fiscal year.
(b) Additional certification.--
(1) The department shall calculate each school
district's estimated local revenue calculation and certify
the calculation to the Secretary of the Budget no later than
30 days after the effective date of this section.
(2) By the first December 15 after the date of enactment
and December 15 of each year thereafter, each school district
subject to section 324 of the Taxpayer Relief Act shall
certify to the department the total amount of tax credits
under section 324(2) of the Taxpayer Relief Act.
(c) (Reserved).
(d) Notification.--
(1) By April 20, 2018, and April 20 of each year
thereafter, the Secretary of the Budget shall notify the
department whether the department is authorized to provide
school districts with property tax reduction allocations
under section 901.
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(2) The Secretary of the Budget shall not authorize the
department to provide the first property tax reduction
allocations until the amount available for distribution under
subsection (e) is equal to or greater than the amount
necessary to provide the entire allocation.
(e) Distribution.--For fiscal year 2019-2020 and each fiscal
year thereafter, the secretary shall distribute the amount
sufficient to fund homestead and farmstead exclusions for
eligible school districts under this act. The amount deducted
under this paragraph shall be calculated based on the
information provided by school districts under this section.
CHAPTER 15
MISCELLANEOUS PROVISIONS
Section 1501. (Reserved).
Section 1502. Effective date.
This act shall take effect in 60 days.
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