PRINTER'S NO. 1866
No. 1481 Session of 2003
INTRODUCED BY D. EVANS, DeWEESE, WASHINGTON, MELIO, LaGROTTA,
FRANKEL, MANDERINO, WALKO, WHEATLEY, MYERS, MUNDY, LEACH,
BELFANTI, McCALL, LAUGHLIN, JAMES, LEDERER, GEORGE, GRUCELA,
MARKOSEK, ROONEY, CAPPELLI, DALLY, GERGELY, GOODMAN, HARHAI,
HENNESSEY, HERMAN, YUDICHAK, WATERS, SAYLOR, SCRIMENTI,
STABACK, TRAVAGLIO, HERSHEY AND COHEN, MAY 29, 2003
REFERRED TO COMMITTEE ON FINANCE, MAY 29, 2003
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 tax provisions for
11 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
16 June 29, 2002 (P.L.559, No.89), 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
1 taxable year is six thousand five hundred dollars ($6,500) or
2 less, or, in the case of a married claimant, if the joint
3 poverty income of the claimant and the claimant's spouse during
4 an entire taxable year is thirteen thousand dollars ($13,000) or
5 less, the claimant shall be entitled to a refund or forgiveness
6 of any moneys which have been paid over to (or would except for
7 the provisions of this act be payable to) the Commonwealth under
8 the provisions of this article, with an additional income
9 allowance of [nine thousand dollars ($9,000)] nine thousand two
10 hundred fifty dollars ($9,250) for each dependent of the
11 claimant[.] for the taxable year 2003 and nine thousand five
12 hundred dollars ($9,500) for each dependent of the claimant for
13 taxable year 2004 and each year thereafter. 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 have been except for the provisions herein be
28 payable to) the Commonwealth under this article:
29 (i) Ninety per cent if not in excess of two hundred fifty
30 dollars ($250).
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1 (ii) Eighty per cent if not in excess of five hundred
2 dollars ($500).
3 (iii) Seventy per cent if not in excess of seven hundred
4 fifty dollars ($750).
5 (iv) Sixty per cent if not in excess of one thousand dollars
6 ($1,000).
7 (v) Fifty per cent if not in excess of one thousand two
8 hundred fifty dollars ($1,250).
9 (vi) Forty per cent if not in excess of one thousand five
10 hundred dollars ($1,500).
11 (vii) Thirty per cent if not in excess of one thousand seven
12 hundred fifty dollars ($1,750).
13 (viii) Twenty per cent if not in excess of two thousand
14 dollars ($2,000).
15 (ix) Ten per cent if not in excess of two thousand two
16 hundred fifty dollars ($2,250).
17 (3) If an individual has a taxable year of less than twelve
18 months, the poverty income thereof shall be annualized in such
19 manner as the department may prescribe.
20 Section 2. This act shall take effect July 1, 2003.
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