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PRINTER'S NO. 121
THE GENERAL ASSEMBLY OF PENNSYLVANIA
HOUSE BILL
No.
113
Session of
2023
INTRODUCED BY CIRESI, HADDOCK, PROBST, SMITH-WADE-EL, KINKEAD,
BENHAM, SALISBURY, McNEILL, KRAJEWSKI, MERSKI, SAPPEY,
D. WILLIAMS, MADDEN, HILL-EVANS, CERRATO, HANBIDGE,
PISCIOTTANO, GUENST, SANCHEZ, KENYATTA, PARKER, MENTZER,
VENKAT, CEPEDA-FREYTIZ, PASHINSKI, T. DAVIS, DELLOSO, BURGOS,
KHAN, DEASY, O'MARA AND OTTEN, MARCH 8, 2023
REFERRED TO COMMITTEE ON FINANCE, MARCH 8, 2023
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 tax relief in cities of the
first class, further providing for supplemental senior
citizen tax reduction; and, in senior citizens property tax
and rent rebate assistance, further providing for
definitions, for property tax and rent rebate and for funds
for payment of claims.
The General Assembly of the Commonwealth of Pennsylvania
hereby enacts as follows:
Section 1. Section 704(a)(1) of the act of June 27, 2006
(1st Sp.Sess., P.L.1873, No.1), known as the Taxpayer Relief
Act, is amended and the subsection is amended by adding
paragraphs to read:
Section 704. Supplemental senior citizen tax reduction.
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(a) Eligibility.--Beginning in the first year in which a
payment under section 505(b) is made and each year thereafter,
the following apply:
[(1) Except as provided in paragraph (2), any resident
of a city of the first class, a city of the second class A or
a resident of a school district of the first class A who is
eligible to receive a property tax rebate under Chapter 13
and has a household income, as defined under section 1303,
equal to or less than $30,000 shall be eligible to receive an
additional property tax rebate equal to 50% of the amount the
individual is eligible to receive under Chapter 13.]
(1.1) Except as provided in paragraph (2), a resident of
a city of the first class, a city of the second class A or a
school district of the first class A who is eligible to
receive a property tax rebate under Chapter 13 through
calendar year 2022 and who has a household income, as defined
under section 1303, equal to or less than $30,000 shall be
eligible to receive an additional property tax rebate equal
to 50% of the amount that the individual is eligible to
receive under Chapter 13.
(1.2) Except as provided in paragraph (2), a resident of
a city of the first class, a city of the second class A or a
school district of the first class A who is eligible to
receive a property tax rebate under Chapter 13 during
calendar year 2023 and thereafter and whose real property
taxes exceed 15% of the claimant's household income, as
defined under section 1303, shall be eligible to receive an
additional property tax rebate equal to 50% of the amount
that the individual is eligible to receive under Chapter 13.
* * *
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Section 2. The definition of "income" in section 1303 of the
act is amended 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
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. ยง 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]
2020, 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
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on December 31, 2016.]
(4) All benefits received under State unemployment
insurance laws.
(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
supplied by a governmental agency, property tax or rent rebate,
inflation dividend, Federal veterans' disability payments or
State veterans' benefits. Income shall be reduced by the face
amount of property taxes paid by the claimant on the claimant's
primary residence regardless of whether the taxes were paid in
the discount, face or penalty period.
* * *
Section 3. Sections 1304(a) and 1308(b)(4) of the act are
amended to read:
Section 1304. Property tax; and rent rebate.
(a) Schedule of rebates.--
(1) The amount of any claim for property tax rebate or
rent rebate in lieu of property taxes for real property taxes
or rent due and payable during calendar years 1985 through
2005 shall be determined in accordance with the following
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schedule:
Household Income
Percentage of Real Property Taxes or
Rent Rebate in Lieu of
Property Taxes Allowed as Rebate
$ 0 - $ 4,999 100%
5,000 - 5,499 100
5,500 - 5,999 90
6,000 - 6,499 80
6,500 - 6,999 70
7,000 - 7,499 60
7,500 - 7,999 50
8,000 - 8,499 40
8,500 - 8,999 35
9,000 - 9,999 25
10,000 - 11,999 20
12,000 - 12,999 15
13,000 - 15,000 10
(2) The following apply:
(i) The base amount of any claim for property tax
rebate for real property taxes due and payable during
calendar [year 2006 and thereafter] years 2006 through
2022 shall be determined in accordance with the following
schedule:
Household Income
Amount of Real Property Taxes
Allowed as Rebate
$ 0 - $ 8,000 $650
8,001 - 15,000 500
15,001 - 18,000 300
18,001 - 35,000 250
(ii) [The] Through calendar year 2022, the
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supplemental amount for a claimant with a household
income equal to or less than $30,000 and an eligible
claim for property tax rebate for real property taxes due
and payable during the calendar year preceding the first
year in which a payment under section 505(b) is made and
each year thereafter and whose real property taxes exceed
15% of the claimant's household income shall be equal to
50% of the base amount determined under subparagraph (i).
A claimant who is a resident of a city of the first
class, a city of the second class A or a school district
of the first class A shall be ineligible for the
supplemental amount under this subparagraph.
(iii) The base amount of any claim for property tax
rebate for real property taxes due and payable during
calendar year 2023 and thereafter shall be determined in
accordance with the following schedule:
Household Income
Amount of Real Property Taxes
Allowed as Rebate
$ 0 - $ 12,000 $800
12,001 - 25,000 600
25,001 - 35,000 375
35,001 - 50,000 300
(iv) During calendar year 2023 and thereafter, the
supplemental amount for a claimant with an eligible claim
for property tax rebate for real property taxes due and
payable during the calendar year preceding the first year
in which a payment under section 505(b) is made and each
year thereafter and whose real property taxes exceed 15%
of the claimant's household income shall be equal to 50%
of the base amount determined under subparagraph (iii). A
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claimant who is a resident of a city of the first class,
a city of the second class A or a school district of the
first class A shall be ineligible for the supplemental
amount under this subparagraph.
(3) The following apply:
(i) The amount of any claim for rent rebate in lieu
of property taxes for rent due and payable during
calendar [year 2006 and thereafter] years 2006 through
2022 shall be determined in accordance with the
following:
Household Income
Amount of Rent Rebate in
Lieu of Property Taxes
Allowed as Rebate
$ 0 - $ 8,000 $650
8,001 - 15,000 500
(ii) The amount of any claim for rent rebate in lieu
of property taxes for rent due and payable during
calendar year 2023 and thereafter shall be determined in
accordance with the following:
Household Income
Amount of Rent Rebate in
Lieu of Property Taxes
Allowed as Rebate
$ 0 - $ 12,000 $800
12,001 - 25,000 600
* * *
Section 1308. Funds for payment of claims.
* * *
(b) Transfers.--The Secretary of the Budget shall transfer
the following amounts from the Property Tax Relief Fund to the
State Lottery:
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* * *
(4) For fiscal year 2009-2010 and each fiscal year
thereafter, all of the following:
(i) The difference between the sum of the amount of
approved claims to be paid in the next fiscal year under
section 1304(a)(2)(i) or (iii) and [(3)] (3)(i) or (ii)
and the amount of approved claims paid in fiscal year
2006-2007 under section 1304(a)(1).
(ii) The sum of the amount of approved claims to be
paid in the next fiscal year under sections 704 and
1304(a)(2)(ii) or (iv), if any.
* * *
Section 4. This act shall take effect in 60 days.
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