A07337
THE GENERAL ASSEMBLY OF PENNSYLVANIA
HOUSE BILL
No.
968
Session of
2017
INTRODUCED BY MASSER, DRISCOLL, JAMES, PICKETT, FREEMAN, WATSON,
SAINATO, A. HARRIS, NEILSON AND WHEELAND, MARCH 27, 2017
REFERRED TO COMMITTEE ON FINANCE, MARCH 27, 2017
AN ACT
Amending the act of June 27, 2006 (1st Sp.Sess., P.L.1873,
No.1), entitled "An act providing for taxation by school
districts, for the State funds formula, for tax relief in
first class cities, for school district choice and voter
participation, for other school district options and for a
task force on school cost reduction; making an appropriation;
prohibiting prior authorized taxation; providing for
installment payment of taxes; restricting the power of
certain school districts to levy, assess and collect taxes;
and making related repeals," in senior citizens property tax
and rent rebate assistance, further providing for the
definition of "income." "income" and providing for the
definition of "Social Security substitute pension."
The General Assembly of the Commonwealth of Pennsylvania
hereby enacts as follows:
Section 1. The definition of "income" in section 1303 of the
act of June 27, 2006 (1st Sp.Sess., P.L.1873, No.1), known as
the Taxpayer Relief Act, amended November 2, 2016 (P.L.969,
No.117), is amended and the section is amended by adding a
definition to read:
Section 1303. Definitions.
The following words and phrases when used in this chapter
shall have the meanings given to them in this section unless the
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context clearly indicates otherwise:
* * *
"Income." All income from whatever source derived,
including, but not limited to:
(1) Salaries, wages, bonuses, commissions, income from
self-employment, alimony, support money, cash public
assistance and relief.
(2) The gross amount of any pensions or annuities,
including railroad retirement benefits for calendar years
prior to 1999 and 50% of railroad retirement benefits for
calendar years 1999 and thereafter.
(3) (i) All benefits received under the Social Security
Act (49 Stat. 620, 42 U.S.C. § 301 et seq.), except
Medicare benefits, for calendar years prior to 1999, and
50% of all benefits received under the Social Security
Act, except Medicare benefits, for calendar years 1999
and thereafter.
(ii) Notwithstanding any other provision of this act
to the contrary, persons who, as of December 31, 2012,
are eligible for the property tax or rent rebate shall
remain eligible if the household income limit is exceeded
due solely to a Social Security cost-of-living
adjustment.
(iii) Eligibility in the property tax and rent
rebate program pursuant to subparagraph (ii) shall expire
on December 31, 2016.
(iv) For those receiving pension benefits through
the Federal Civil Service Retirement System that accrued
during a period of employment for which the beneficiary
was not required to make contributions under the Social
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Security Act, the beneficiary shall exclude from income
an amount determined by the department which shall equal
50% of the average retired worker Social Security payment
for the previous calendar year for which the data is
available as determined by the Social Security
Administration and published on the Social Security
Administration's publicly accessible Internet website.
(iv) Social Security substitute pensions for
calendar years prior to 2018 and 50% of Social Security
substitute pensions for calendar years 2018 and
thereafter. The amount of a Social Security substitute
pension shall not exceed the maximum Federal old age and
survivor benefit payments, less any Federal old age and
survivor benefit payments received under the Social
Security Act for employment covered under the Social
Security Act.
(4) All benefits received under State unemployment
insurance laws and veterans' disability payments.
(5) All interest received from the Federal or any state
government or any instrumentality or political subdivision
thereof.
(6) Realized capital gains and rentals.
(7) Workers' compensation.
(8) The gross amount of loss of time insurance benefits,
life insurance benefits and proceeds, except the first $5,000
of the total of death benefit payments.
(9) Gifts of cash or property, other than transfers by
gift between members of a household, in excess of a total
value of $300.
The term does not include surplus food or other relief in kind
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supplied by a governmental agency, property tax or rent rebate,
inflation dividend, Federal veterans' disability payments or
State veterans' benefits.
* * *
"Social Security substitute pension." A pension that is
provided in lieu of old age and survivor benefit payments under
the Social Security Act (49 Stat. 620, 42 U.S.C. § 301 et seq.)
to a person whose employment was not covered under the Social
Security Act.
Section 2. This act shall take effect in 60 days
immediately.
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