PRINTER'S NO. 1766
No. 1362 Session of 1998
INTRODUCED BY HART, GERLACH, HELFRICK, CONTI, ARMSTRONG, MOWERY,
EARLL, WENGER, WHITE, AFFLERBACH, PUNT, BRIGHTBILL,
SALVATORE, ROBBINS, LAVALLE, O'PAKE, THOMPSON, SLOCUM AND
MUSTO, MARCH 11, 1998
REFERRED TO FINANCE, MARCH 11, 1998
AN ACT
1 Amending the act of March 4, 1971 (P.L.6, No.2), entitled "An
2 act relating to tax reform and State taxation by codifying
3 and enumerating certain subjects of taxation and imposing
4 taxes thereon; providing procedures for the payment,
5 collection, administration and enforcement thereof; providing
6 for tax credits in certain cases; conferring powers and
7 imposing duties upon the Department of Revenue, certain
8 employers, fiduciaries, individuals, persons, corporations
9 and other entities; prescribing crimes, offenses and
10 penalties," further providing for special income tax
11 provisions for poverty.
12 The General Assembly of the Commonwealth of Pennsylvania
13 hereby enacts as follows:
14 Section 1. Section 304(d) of the act of March 4, 1971
15 (P.L.6, No.2), known as the Tax Reform Code of 1971, amended May
16 7, 1997 (P.L.85, No.7), is amended to read:
17 Section 304. Special Tax Provisions for Poverty.--* * *
18 (d) Any claim for special tax provisions hereunder shall be
19 determined in accordance with the following:
20 (1) If the poverty income of the claimant during an entire
21 taxable year is [six thousand three hundred dollars ($6,300)]
1 six thousand five hundred dollars ($6,500) or less, or, in the
2 case of a married claimant, if the joint poverty income of the
3 claimant and the claimant's spouse during an entire taxable year
4 is [twelve thousand six hundred dollars ($12,600)] thirteen
5 thousand dollars ($13,000) or less, the claimant shall be
6 entitled to a refund or forgiveness of any moneys which have
7 been paid over to (or would except for the provisions of this
8 act be payable to) the Commonwealth under the provisions of this
9 article, with an additional income allowance of [four thousand
10 dollars ($4,000)] six thousand dollars ($6,000) for the first
11 additional dependent and an additional income allowance of [four
12 thousand dollars ($4,000)] six thousand dollars ($6,000) for
13 each additional dependent of the claimant. For purposes of this
14 subsection, a claimant shall not be considered to be married if:
15 (i) The claimant and the claimant's spouse file separate
16 returns; and
17 (ii) The claimant and the claimant's spouse live apart at
18 all times during the last six months of the taxable year or are
19 separated pursuant to a written separation agreement.
20 (2) If the poverty income of the claimant during an entire
21 taxable year does not exceed the poverty income limitations
22 prescribed by clause (1) by more than the dollar category
23 contained in subclauses (i), (ii), (iii), (iv), (v), (vi),
24 (vii), (viii) or (ix) of this clause, the claimant shall be
25 entitled to a refund or forgiveness based on the per centage
26 prescribed in such subclauses of any moneys which have been paid
27 over to (or would except for the provisions herein be payable
28 to) the Commonwealth under this article:
29 (i) Ninety per cent if not in excess of [one hundred dollars
30 ($100)] two hundred fifty dollars ($250).
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1 (ii) Eighty per cent if not in excess of [two hundred
2 dollars ($200)] five hundred dollars ($500).
3 (iii) Seventy per cent if not in excess of [three hundred
4 dollars ($300)] seven hundred fifty dollars ($750).
5 (iv) Sixty per cent if not in excess of [four hundred
6 dollars ($400)] one thousand dollars ($1,000).
7 (v) Fifty per cent if not in excess of [five hundred dollars
8 ($500)] one thousand two hundred fifty dollars ($1,250).
9 (vi) Forty per cent if not in excess of [six hundred dollars
10 ($600)] one thousand five hundred dollars ($1,500).
11 (vii) Thirty per cent if not in excess of [seven hundred
12 dollars ($700)] one thousand seven hundred fifty dollars
13 ($1,750).
14 (viii) Twenty per cent if not in excess of [eight hundred
15 dollars ($800)] two thousand dollars ($2,000).
16 (ix) Ten per cent if not in excess of [nine hundred dollars
17 ($900)] two thousand two hundred fifty dollars ($2,250).
18 (3) If an individual has a taxable year of less than twelve
19 months, the poverty income thereof shall be annualized in such
20 manner as the department may prescribe.
21 Section 2. The amendment of section 304(d)(1) of the act
22 shall apply with respect to any taxable year beginning on or
23 after January 1, 1998.
24 Section 3. This act shall take effect immediately.
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