|Posted:||December 4, 2018 02:59 PM|
|From:||Senator Kristin Phillips-Hill|
|To:||All Senate members|
|Subject:||Removing a Loophole Hurting Retirees from Qualifying for a Property Tax Rent Rebate|
|In the near future I intend to introduce legislation to amend the “income” definition of the Property Tax Rent Rebate (PTRR) Program to exclude a distribution from a qualified plan that is invested in another qualified plan within 60 days. If those funds are not invested into another qualified retirement plan within 60 days, then it shall be considered income. This change aligns the PTRR program with both Pennsylvania and Federal Income Tax Laws.
This legislation is needed because retirees visit district offices across the Commonwealth to complete their PA 1000 applications only to discover they do not qualify for a rebate since they transferred a retirement account from one financial institution into another within state and federal guidelines. This is because the Department of Revenue considers these transferred funds as income, thereby disqualifying the applicant from receiving a rebate because they exceeded income eligibility requirements.
My office has communicated with the Department of Revenue regarding this issue and they recommend a change in the law to correct the loophole. Please consider cosponsoring this important piece of legislation to finally close this loophole which is prohibiting retirees from obtaining a rebate.
Introduced as SB319