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PRINTER'S NO. 545
THE GENERAL ASSEMBLY OF PENNSYLVANIA
SENATE BILL
No.
514
Session of
2019
INTRODUCED BY BAKER, SANTARSIERO, K. WARD, COSTA AND BREWSTER,
APRIL 4, 2019
REFERRED TO FINANCE, APRIL 4, 2019
AN ACT
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," in personal income tax, further providing for
definitions and for special tax provisions for poverty.
The General Assembly of the Commonwealth of Pennsylvania
hereby enacts as follows:
Section 1. Sections 301(c.2) and 304 of the act of March 4,
1971 (P.L.6, No.2), known as the Tax Reform Code of 1971, are
amended to read:
Section 301. Definitions.--Any reference in this article to
the Internal Revenue Code of 1986 shall mean the Internal
Revenue Code of 1986 (Public Law 99-514, 26 U.S.C. § 1 et seq.),
as amended to January 1, 1997, unless the reference contains the
phrase "as amended" and refers to no other date, in which case
the reference shall be to the Internal Revenue Code of 1986 as
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it exists as of the time of application of this article. The
following words, terms and phrases when used in this article
shall have the meaning ascribed to them in this section except
where the context clearly indicates a different meaning:
* * *
(c.2) "Claimant" means either:
(1) a person who is subject to the tax imposed under this
article, is not a dependent of another taxpayer for purposes of
section 151 of the Internal Revenue Code of 1986 (Public Law 99-
514, 26 U.S.C. § 151), but is entitled to claim against such tax
the poverty tax provisions as provided by this act[.]; or
(2) a person who is subject to the tax imposed under this
article and is enrolled as a full-time student at an institution
of higher education, regardless of whether the person is a
dependent of another taxpayer for purposes of section 151 of the
Internal Revenue Code of 1986, but is entitled to claim against
such tax the poverty tax provisions as provided by this act.
* * *
Section 304. Special Tax Provisions for Poverty.--(a) The
General Assembly, in recognition of the powers contained in
section 2(b)(ii) of Article VIII of the Constitution of the
Commonwealth of Pennsylvania which provides therein for the
establishing as a class or classes of subjects of taxation the
property or privileges of persons who, because of poverty are
determined to be in need of special tax provisions hereby
declares as its legislative intent and purpose to implement such
power under such constitutional provision by establishing
special tax provisions as hereinafter provided in this act.
(b) The General Assembly having determined that there are
persons within this Commonwealth whose incomes are such that
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imposition of a tax thereon would deprive them and their
dependents of the bare necessities of life and having further
determined that poverty is a relative concept inextricably
joined with actual income and the number of people dependent
upon such income deems it to be a matter of public policy to
provide special tax provisions for that class of persons
hereinafter designated to relieve their economic burden.
(c) For the taxable year 1974 and each year thereafter any
claimant as defined under section 301(c.2)(1) who meets the
[following] standards of eligibility established by this act as
the test for poverty shall be deemed a separate class of subject
of taxation, and, as such, shall be entitled to the benefit of
the special provisions of this act.
(c.1) For the taxable year 2016 and each year thereafter any
claimant as defined under section 301(c.2)(2) who meets the
standards of eligibility established by this act as the test for
poverty shall be deemed a separate class of subject of taxation,
and, as such, shall be entitled to the benefit of the special
provisions of this act. This subsection shall not apply if the
parents of the claimant are themselves entitled to the benefit
of the special provisions of this act.
(d) Any claim for special tax provisions [hereunder] under
subsection (c) shall be determined in accordance with the
following:
(1) If the poverty income of the claimant during an entire
taxable year is six thousand five hundred dollars ($6,500) or
less, or, in the case of a married claimant, if the joint
poverty income of the claimant and the claimant's spouse during
an entire taxable year is thirteen thousand dollars ($13,000) or
less, the claimant shall be entitled to a refund or forgiveness
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of any moneys which have been paid over to (or would except for
the provisions of this act be payable to) the Commonwealth under
the provisions of this article, with an additional income
allowance of nine thousand five hundred dollars ($9,500) for
each dependent of the claimant. For purposes of this subsection,
a claimant shall not be considered to be married if:
(i) The claimant and the claimant's spouse file separate
returns; and
(ii) The claimant and the claimant's spouse live apart at
all times during the last six months of the taxable year or are
separated pursuant to a written separation agreement.
(2) If the poverty income of the claimant during an entire
taxable year does not exceed the poverty income limitations
prescribed by clause (1) by more than the dollar category
contained in [subclauses] subclause (i), (ii), (iii), (iv), (v),
(vi), (vii), (viii) or (ix) of this clause, the claimant shall
be entitled to a refund or forgiveness based on the per centage
prescribed in such subclauses of any moneys which have been paid
over to (or would have been except for the provisions herein be
payable to) the Commonwealth under this article:
(i) Ninety per cent if not in excess of two hundred fifty
dollars ($250).
(ii) Eighty per cent if not in excess of five hundred
dollars ($500).
(iii) Seventy per cent if not in excess of seven hundred
fifty dollars ($750).
(iv) Sixty per cent if not in excess of one thousand dollars
($1,000).
(v) Fifty per cent if not in excess of one thousand two
hundred fifty dollars ($1,250).
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(vi) Forty per cent if not in excess of one thousand five
hundred dollars ($1,500).
(vii) Thirty per cent if not in excess of one thousand seven
hundred fifty dollars ($1,750).
(viii) Twenty per cent if not in excess of two thousand
dollars ($2,000).
(ix) Ten per cent if not in excess of two thousand two
hundred fifty dollars ($2,250).
(3) If an individual has a taxable year of less than twelve
months, the poverty income thereof shall be annualized in such
manner as the department may prescribe.
(e) A claim for special tax provisions under subsection
(c.1) shall be determined in accordance with the following:
(1) If the poverty income of the claimant during an entire
taxable year is six thousand five hundred dollars ($6,500) or
less, the claimant shall be entitled to a refund or forgiveness
of any moneys that have been paid over to (or would except for
the provisions of this act be payable to) the Commonwealth under
the provisions of this article; or
(2) If the poverty income of the claimant during an entire
taxable year does not exceed the poverty income limitations
prescribed under clause (1) by more than the dollar category
contained in subclause (i), (ii), (iii), (iv), (v), (vi), (vii),
(viii) or (ix), the claimant shall be entitled to a refund or
forgiveness based on the percentage prescribed in such
subclauses of any moneys that have been paid over to (or would
have been, except for the provisions herein, payable to) the
Commonwealth under this article:
(i) Ninety per cent if not in excess of two hundred fifty
dollars ($250).
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(ii) Eighty per cent if not in excess of five hundred
dollars ($500).
(iii) Seventy per cent if not in excess of seven hundred
fifty dollars ($750).
(iv) Sixty per cent if not in excess of one thousand dollars
($1,000).
(v) Fifty per cent if not in excess of one thousand two
hundred fifty dollars ($1,250).
(vi) Forty per cent if not in excess of one thousand five
hundred dollars ($1,500).
(vii) Thirty per cent if not in excess of one thousand seven
hundred fifty dollars ($1,750).
(viii) Twenty per cent if not in excess of two thousand
dollars ($2,000).
(ix) Ten per cent if not in excess of two thousand two
hundred fifty dollars ($2,250).
(3) If an individual has a taxable year of less than twelve
months, the poverty income for that year shall be annualized in
such manner as the department may prescribe.
Section 2. This act shall take effect in 60 days.
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