PRINTER'S NO. 25
No. 29 Session of 2005
INTRODUCED BY WAGNER, STOUT, C. WILLIAMS, LOGAN, COSTA,
RAFFERTY, ERICKSON, KITCHEN AND ORIE, JANUARY 13, 2005
REFERRED TO FINANCE, JANUARY 13, 2005
AN ACT
1 Providing funding to school districts which provide certain
2 school tax relief; establishing the Education Volunteer
3 School Tax Relief Fund; conferring powers and duties on the
4 Department of Education; and making an appropriation.
5 The General Assembly of the Commonwealth of Pennsylvania
6 hereby enacts as follows:
7 Section 1. Short title.
8 This act shall be known and may be cited as the Education
9 Volunteer School Tax Relief Act.
10 Section 2. Declaration of policy.
11 The General Assembly finds and declares as follows:
12 (1) Programs run by local school districts which allow
13 qualified volunteers to donate their time in exchange for
14 school tax relief are admirable in intent and worthy of
15 financial support from the Commonwealth.
16 (2) Such programs should be encouraged by providing
17 matching funding for school districts which participate.
18 Section 3. Definitions.
1 The following words and phrases when used in this act shall
2 have the meanings given to them in this section unless the
3 context clearly indicates otherwise:
4 "Department." The Department of Education of the
5 Commonwealth.
6 "Fund." The Education Volunteer School Tax Relief Fund
7 established in section 5 (relating to fund).
8 "Permanently disabled individual." An individual who, as
9 certified by a physician, is unable to engage in a substantial
10 economically gainful activity by reason of a medically
11 determinable physical or mental impairment which can be expected
12 to continue indefinitely.
13 "Qualifying volunteer." Any of the following:
14 (1) An individual who is 65 years of age or older.
15 (2) An individual who:
16 (i) is a widow or widower; and
17 (ii) is 50 years of age or older.
18 (3) A permanently disabled individual who is 18 years of
19 age or older.
20 "School tax." The tax levied under section 602 of the act of
21 March 10, 1949 (P.L.30, No.14), known as the Public School Code
22 of 1949.
23 "School tax year." A year for which school tax is levied, as
24 determined by the taxable period billed by the school district.
25 Section 4. Department.
26 The department has the following powers and duties:
27 (1) Administer this act.
28 (2) Manage the fund under section 5(d) (relating to
29 fund).
30 (3) Issue grants under section 7 (relating to grants
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1 from fund).
2 (4) Promulgate regulations to implement this act.
3 Section 5. Fund.
4 (a) Establishment.--The Education Volunteer School Tax
5 Relief Fund is established as a separate fund in the State
6 Treasury.
7 (b) Source.--The source of the fund is annual
8 appropriations.
9 (c) Purpose.--The purpose of the fund is to supplement
10 school districts in providing school tax relief to qualifying
11 volunteers.
12 (d) Management.--The department shall manage the fund.
13 Section 6. School tax relief.
14 (a) Authorization.--A school district may provide a program
15 in a school tax year for a qualifying volunteer to donate
16 service to the school district in return for a credit against
17 the school tax levied against that qualifying volunteer. For
18 purposes of this subsection, if a qualifying volunteer is
19 physically unable, as certified by a physician, to provide the
20 service, the qualifying volunteer may designate a replacement to
21 provide the service. The amount of the credit shall be based
22 upon all of the following:
23 (1) The value of the service to the school district.
24 (2) The amount of school tax collected and collectible
25 for the school tax year.
26 (3) The projected necessary revenue of the school
27 district for the school tax year.
28 (b) Income restriction.--A credit under subsection (a) may
29 not be given to any of the following:
30 (1) A qualifying volunteer who, during the school tax
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1 year for which a credit is sought, filed an individual income
2 tax return with the status of single, of married filing
3 separately or of deceased, with a total of all classes of
4 income under section 303 of the act of March 4, 1971 (P.L.6,
5 No.2), known as the Tax Reform Code of 1971, of $35,000 or
6 more.
7 (2) A qualifying volunteer who, during the school tax
8 year for which a credit is sought, filed an individual income
9 tax return with the status of married filing a joint return
10 or of joint claim for tax forgiveness with a total of all
11 classes of income under section 303 of the Tax Reform Code of
12 1971 of $55,000 or more.
13 (c) Maximum.--A credit under subsection (a) may not exceed
14 the total amount of school tax owed by the qualifying volunteer.
15 (d) Tax exemption.--Tax credits under this section shall
16 not, for any purpose, be deemed classes of income under section
17 303 of the Tax Reform Code of 1971.
18 Section 7. Grants from fund.
19 (a) Eligibility.--A school district is eligible for a grant
20 from the fund for a program under section 6 (relating to school
21 tax relief) as follows:
22 (1) For a school district with a student enrollment of
23 less than 1,000, grant eligibility shall be accorded for tax
24 credits in a school tax year totaling not less than $2,500
25 nor more than $7,000.
26 (2) For a school district with a student enrollment of
27 more than 999 but less than 10,000, grant eligibility shall
28 be accorded for tax credits in a school year totaling not
29 less than $7,000.01 nor more than $12,000.
30 (3) For a school district with a student enrollment of
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1 more than 9,999, grant eligibility shall be accorded for tax
2 credits in a school year totaling not less than $12,000.01
3 nor more than $15,000.
4 (b) Amount.--The amount of a grant shall be 50% of the grant
5 eligibility accorded under subsection (a).
6 Section 8. Appropriation.
7 The sum of $ , or as much thereof as may be necessary, is
8 hereby appropriated to the Department of Education for the
9 fiscal year July 1, 2005, to June 30, 2006, for deposit into the
10 Education Volunteer School Tax Relief Fund.
11 Section 9. Applicability.
12 This act shall apply to school tax years which begin on or
13 after the effective date of this act.
14 Section 10. Effective date.
15 This act shall take effect in 60 days.
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