THE GENERAL ASSEMBLY OF PENNSYLVANIA
INTRODUCED BY SCAVELLO, BARRAR, BOYD, CARROLL, GEIST, GROVE, HARKINS, KILLION, KORTZ, D. O'BRIEN, O'NEILL, READSHAW, REICHLEY AND WATSON, JANUARY 25, 2011
REFERRED TO COMMITTEE ON FINANCE, JANUARY 25, 2011
Amending the act of March 4, 1971 (P.L.6, No.2), entitled "An
act relating to tax reform and State taxation by codifying
and enumerating certain subjects of taxation and imposing
taxes thereon; providing procedures for the payment,
collection, administration and enforcement thereof; providing
for tax credits in certain cases; conferring powers and
imposing duties upon the Department of Revenue, certain
employers, fiduciaries, individuals, persons, corporations
and other entities; prescribing crimes, offenses and
penalties," further providing for classes of income.
The General Assembly of the Commonwealth of Pennsylvania
hereby enacts as follows:
Section 1. Section 303 of the act of March 4, 1971 (P.L.6,
No.2), known as the Tax Reform Code of 1971, is amended by
adding a subsection to read:
Section 303. Classes of Income.--* * *
(a.8) The following shall apply:
(1) An amount equal to seventy-five per cent of the amount
paid as dues to a homeowners association shall be deductible
from taxable income on the annual personal income tax return.
The amount paid as dues to a homeowners association allowable as
a deduction under this subsection shall not result in taxable
income being less then zero.
(2) For purposes of this subsection:
(i) The term "homeowners association" shall mean a legal
entity created for the purpose of developing and managing a
community of homes. Characteristics of a "homeowners
association" shall include the authority to enforce covenants,
conditions and restrictions of the community and the authority
or responsibility to manage common amenities of the community.
(ii) The term "dues" shall mean any fee or payment required
of a homeowner for membership and participation in a homeowners
* * *
Section 2. The addition of section 303(a.8) of the act shall
apply to taxable years beginning after December 31, 2011.
Section 3. This act shall take effect January 1, 2012, or
immediately, whichever is later.