Posted: | September 22, 2021 02:58 PM |
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From: | Representative Steve Samuelson |
To: | All House members |
Subject: | Increase in Property Tax and Rent Rebate Exemption |
In the near future, I plan to introduce legislation amending the Taxpayer Relief Act of 2006 to increase the exemption for life insurance benefits from $5,000 to $10,000 when calculating income eligibility for the Property Tax/Rent Rebate (PTRR) program. This $5,000 exemption was established more than 40 years ago when the average cost of a funeral was approximately $983. Since then, that average has increased to more than $7,000, not including the cost of a burial site or monument. Many senior citizens utilize a modest life insurance payment upon the death of a loved one to cover funeral costs and other expenses. As you can see, it would take a policy in excess of $5,000 to cover those costs. However, with the existing exemption in the PTRR program, any life insurance payment over $5,000 would count towards a person's income and could put a surviving spouse over the PTRR income limit in the year that the life insurance payment was received. This bill would increase the PTRR death benefit exemption from $5,000 to $10,000. Act 27 of 2003 increased the life insurance exemption for the PACE program from $5,000 to $10,000. According to the Department of Aging, between 3,000 and 5,000 PACE enrollees benefited from that change. Please join me in co-sponsoring this legislation to raise the PTRR death benefit exemption. |
Introduced as HB2089