1Amending the act of June 27, 2006 (1st Sp.Sess., P.L.1873,
2No.1), entitled "An act providing for taxation by school
3districts, for the State funds formula, for tax relief in
4first class cities, for school district choice and voter
5participation, for other school district options and for a
6task force on school cost reduction; making an appropriation;
7prohibiting prior authorized taxation; providing for
8installment payment of taxes; restricting the power of
9certain school districts to levy, assess and collect taxes;
10and making related repeals," further providing for the
11definition of "income"; and providing for the definition of
12"Social Security substitute pension."

13The General Assembly of the Commonwealth of Pennsylvania
14hereby enacts as follows:

15Section 1.  The definition of "income" in section 1303 of the
16act of June 27, 2006 (1st Sp.Sess., P.L.1873, No.1), known as
17the Taxpayer Relief Act, is amended and the section is amended
18by adding a definition to read:

19Section 1303.  Definitions.

20The following words and phrases when used in this chapter
21shall have the meanings given to them in this section unless the

1context clearly indicates otherwise:

2* * *

3"Income."  All income from whatever source derived,
4including, but not limited to:

5(1)  Salaries, wages, bonuses, commissions, income from
6self-employment, alimony, support money, cash public
7assistance and relief.

8(2)  The gross amount of any pensions or annuities,
9including railroad retirement benefits for calendar years
10prior to 1999 and 50% of railroad retirement benefits for
11calendar years 1999 and thereafter and excluding 50% of 
12Social Security substitute pensions for calendar years 2009 
13and thereafter.

14(3)  All benefits received under the Social Security Act
15(49 Stat. 620, 42 U.S.C. § 301 et seq.), except Medicare
16benefits, for calendar years prior to 1999, and 50% of all
17benefits received under the Social Security Act, except
18Medicare benefits, for calendar years 1999 and thereafter.

19(4)  All benefits received under State unemployment
20insurance laws [and veterans' disability payments].

21(5)  All interest received from the Federal or any state
22government or any instrumentality or political subdivision
23thereof.

24(6)  Realized capital gains and rentals.

25(7)  Workers' compensation.

26(8)  The gross amount of loss of time insurance benefits,
27life insurance benefits and proceeds, except the first $5,000
28of the total of death benefit payments.

29(9)  Gifts of cash or property, other than transfers by
30gift between members of a household, in excess of a total

1value of $300.

2The term does not include surplus food or other relief in kind
3supplied by a governmental agency, property tax or rent rebate
4or inflation dividend.

5* * *

6"Social Security substitute pension."  A pension that is 
7provided in lieu of old age and survivor benefit payments under 
8the Social Security Act (49 Stat. 620, 42 U.S.C. § 301 et seq.) 
9to a person whose employment was not covered under the Social 
10Security Act. The amount of the pension that qualifies as a 
11"Social Security substitute pension" shall not exceed the 
12maximum Federal old age and survivor benefit payments, less any 
13Federal old age and survivor benefit payments received under the 
14Social Security Act for employment covered under the Social 
15Security Act.

16* * *

17Section 2.  This act shall take effect immediately.