Finance 2013-2014

The Senate Finance Committee met on Tuesday, October 7, 2014 to consider the following:

HB 1076, PN 1294 (Brooks)-Amends the Taxpayer Relief Act to exempt Social Security cost-of-living adjustments from income calculated when determining eligibility for the Property Tax/Rent Rebate (PTRR) program.  The bill was reported as committed by unanimous vote.


The Senate Finance Committee met on Tuesday, September 16, 2014 to consider the following:

SB 7, PN 191 (Folmer)-Establishes spending limitations on the Commonwealth; providing for the disposition of surplus funds; establishing the Taxpayer Protection Fund; and repealing provisions of The Fiscal Code relating to the funding of the stabilization reserve.  Senator Brubaker offered amendment # A09448 which changed how monies in excess of limitations are allocated; the Rainy Day Fund-25% and to PSERS and SERS-50%.  The amendment was adopted unanimously.  The bill was reported as amended on a vote of 7 to 4.

SB 76, PN 673(Argall)-Proposes to eliminate school property taxes by increasing the rate and base of the Sales and Use Tax and the Personal Income Tax. On behalf of Senator Argall, Senator Brubaker offered amendment # A09462 which was technical in nature to clarify sales tax levy on business to business transactions.  The amendment was adopted unanimously.  The bill was reported as amended on 6 to 5 vote.


The Senate Finance Committee met on Tuesday June 24, 2014 to consider the following:

HB 91, PN 80 (Evankovich)-Makes career and technical schools eligible for funding from the Educational Improvement Tax Credit Program (EITC).Senator Brubaker offered amendment #A08063 which eliminates the ten percent carve out of the tax credit funding for business firms. The amendment was unanimously approved. The bill was unanimously approved as amended.


The Senate Finance Committee met on Wednesday June 18, 2014to consider the following:

HB 2083, PN 3291(Stern)-Allows DCED to reissue Film Production Tax Credits that were allocated, but unused from any prior fiscal year subject to certain criteria. Senator Brubaker offered amendment A07817 which removed prior fiscal years from the bill. The amendment was unanimously approved. The bill was reported as amended by unanimous vote.

HB 2202, PN 3551(Greiner)-Amends the Tuition Account Programs and Savings Bond Act. The bill was reported as committed by unanimous vote.


The Senate Finance Committee met on Wednesday June 4, 2014, to consider the following:

HB 2110, PN 3342 (Benninghoff)-Amends the State Lottery Law (Act 91 of 1971) to permanently reduce the statutorily-mandated rate of return from 27% to 25% for fiscal years beginning after June 30, 2014 and further requires the Department of Revenue to submit an annual report on the Lottery’s plans for increasing future profits, which was set to expire on June 30 of 2015. The bill was reported as committed by unanimous vote


The Senate Finance Committee met on Monday May 5, 2014 to consider the following:

HB 128, PN 126 (Haggerty)-Allows non-uniformed employees in the city of Scranton to purchase military time towards his or her retirement. The bill was reported as committed by unanimous vote. The Committee unanimously approved the nominations of David Kraus and R. Scott Shearer to the Board of Finance and Revenue.


The Senate Finance Committee met on Wednesday April 2, 2014 to consider the following:

SB 1169, PN 1563 (Folmer)-Removes future employees of the Pennsylvania School Boards Association from participating in a defined benefit pension plan managed by the Public School Employees’ Retirement System.  The bill was reported as committed by unanimous vote.

SB 1078, PN 1707 (Wiley)-Clarifies how COLA’s are calculated for county pension plans.  The bill was reported as committed by unanimous vote.


The Senate Finance Committee met on Wednesday December 11, 2013 to consider the following:

SB 968, PN 1111 (Vulakovich)-Amends the act of March 4, 1971 (P.L.6, No.2), known as the Tax Reform Code of 1971, providing for a waterfront development tax credit. Amendment # A0494 offered by Senator Brubaker adds third class cities to the bill and further sets forth compliance and repayment requirements.  The amendment was approved on a vote of 11-0.  The bill was reported as amended on a vote of 11-0.


The Senate Finance Committee met on Tuesday December 3, 2013 to consider the following:

SB 1009, PN 1273 (Washington)-Extends the current moratorium on including Social Security COLA’s in the definition of “income” for purposes of PACE/PACENET eligibility until December 31, 2016.  The bill was reported as committed on a vote  of 10-0.


The Senate Finance Committee met on Wednesday November 20, 2013 to consider the following:

SB 491, PN 454 (Folmer)-Amends the act of December 31, 1965 (P.L.1257, No.511), known as The Local Tax Enabling Act, providing for the definitions of “farmer” and “farming”; and further providing for declaration and payment of income taxes and for withholding and remittance. A technical amendment, #A03825 was offered by Senator Brubaker was approved on a vote of   11-0. The bill was reported as amended on a vote of 11-0.

HB 1513, PN 2492 (Dunbar)-Amends the Local Tax Enabling Act (LTEA Act 511 of 1965) relating to the delegation of taxing powers and restrictions thereon, limiting the scope of how a local taxing authority (such as a school district or municipality) may levy a tax on the privilege of doing business. The bill was reported as committed on a vote of 10-1.


The Senate Finance Committee met on Wednesday October 23, 2013 to consider the following:

HB 546, PN 580 (Turzai)-This legislation introduces as a measure to aid in the solvency and avoid a possible credit downgrading of the Allegheny County pension system, the bill would establish a new mandatory benefit tier for future county hires and alters the membership composition of the Allegheny County Retirement Board.  Senator Brubaker offered Amendment # A03857 which alters the definition of “compensation” to exclude overtime compensation in excess of 10% of pay from the retirement benefit calculation.  The amendment was approved on a vote of 10-1.  The bill was reported as amended on a vote of   11 -0.


The Senate Finance Committee met on Wednesday October 2, 2013, to consider the following:

SB 703, PN 708 (Blake)-Amends the Scranton Police and Firemen’s Pension Law to remove the statutory three-year time limit within which an active member of the pension plan may purchase up to five years of non-intervening military service time.  The bill was reported as committed on a vote of 11-0.

SB 704, PN 709 (Blake)-Amends the Scranton Employee Pension Law to remove the statutory three-year time limit within which an active member of the pension plan may purchase up to five years of non-intervening military service time.  The bill was reported as committed on a vote of 11-0.

SB 1035, PN 1264 (Pileggi)-This legislation broadens the availability of the film tax credit by eliminating the cap. A technical amendment, A03303, was offered by Senator Pileggi.  The amendment was approved on a vote of 11-0.  The bill was reported as amended on a vote of 9-2.


The Senate Finance met on Sunday, June 30, 2013 to consider the following:

HB 440, PN 1716 (Reed) – This bill requires multistate corporations doing business in Pennsylvania to “add back” intangible expenses and interest expenses to their Pennsylvania taxable income, provided a corporation does not qualify for one of the exceptions in the bill. It also makes omnibus changes to the Tax Reform Code by incorporating the Governor’s business tax plan.  The bill was reported as committed on a 7 to 4 party line vote.


The Senate Finance Committee met on Tuesday, June 25, 2013 to consider the following:

SB 944, PN 1185 (Williams)-This legislation authorizes school districts of the first class coterminous with cities of the first class to enact local cigarette taxes; and establishing the Local Cigarette Tax Fund.   The bill was reported as committed on a vote of 9-2.

SB 1043, PN 1281 (Browne)-This legislation changes the number of required returns, reports or other documents filed by a third party to the Department of Revenue for a tax administered by the Department of Revenue from “50 or more” to “more than ten.”  The bill was reported as committed on a vote of 11-0.

HB 388, PN 1794 (Parker)-This legislation allows for the collection of delinquent property taxes from speculators who own vacant, blighted tax delinquent properties and from investors who purchase and rental properties and fail to pay their property taxes. The bill was reported as committed on a vote of 11-0.

HB 390, PN 401 (O’Brien)-Enables Philadelphia to provide tax relief based on financial need and/or age of longtime owner occupants of residential properties who are living in neighborhoods that have seen large increases in home values as a result of gentrification.  The bill was reported as committed on a vote of 8-3.

HB 391, PN 1574 (McGeehan)-This legislation allows Philadelphia to collect property taxes through installment payments.  The bill was reported as committed on a vote of 11-0.


The Senate Finance Committee met on Wednesday, June 19, 2013 to consider the following:

HB 1172, PN 1606 (Christiana)- This legislation clarifies that the Mercantile or Business Privilege Tax rate set in the year after a merger of political subdivisions must remain the same in all subsequent years, but the limitation of revenue neutrality only applies in the first year after the merger. The bill was reported as committed on a vote of 11-0.

HB 1359, PN 1754 (Toepel)-This legislation allows for the Perkiomen Valley School District and the Methacton School District to annually charge the Commonwealth for a fixed payment for tax-exempt forest land that bisects the two districts.  The bill was reported as committed on a vote of 11-0.

SB 456, PN 797 (Blake)-Amends the Tax Reform Code (Act 2 of 1971) to establish the Innovate in PA program which would provide for the structured auctioning of $225 million worth of insurance premium tax credits with auction proceeds to be distributed to a number of economic development programs via the Ben Franklin Technology Development Authority (BFTDA) and the Department of Community and Economic Development (DCED).  An amendment was offered by Senator Blake (A02326) that sets for the following:

  • Includes “regional biotechnology research centers” known as the Life Sciences Greenhouses in the legislative intent and definitions sections.
  • Increases the anticipated minimum net proceeds to the program from $157.5M to $168.75M in the legislative intent section.
  • Requires the State Treasurer (rather than by an act of the General Assembly) to transfer the amount of tax credits claimed by those insurance companies which pay the Foreign Casualty Insurance Premium Tax and Foreign Fire Insurance Premium Tax to the Municipal Pension Aid Fund, to avoid any negative fiscal impact.  This “hold-harmless” measure is also moved to the “duties” section within the bill.
  • Raises the minimum bid amount from 70% to 75% of the total dollar amount in order to net additional funds to enable the inclusion of the Life Sciences Greenhouses.
  • Changes the distribution amounts to include Life Sciences Greenhouses:
    • 66% (from 70%) to Ben Franklin Tech Development Authority (BFTDA)
    • 29% (from 30%) to DCED
    • 5% to Life Sciences Greenhouses
    • Includes the Life Sciences Greenhouses which shall – in addition to the BFTDA – be consulted by DCED in promulgating guidelines and issuing annual reports to the Governor and General Assembly Appropriations Committee chairs.

The amendment was approved on a vote of 11-0.  The bill was reported as amended on a vote of 11-0.

SB 922, PN 1079 (Brubaker)- Amends Titles 24 (Education), 51 (Military Affairs) and 71 (State Government) of the Pennsylvania Consolidated Statutes, extensively revising pension provisions: for the Public School Employees’ Retirement System, in the areas of preliminary provisions, of membership, contributions and benefits, of School Employees’ Defined Contribution Plan, of administration and miscellaneous provisions and of health insurance for retired school employees; for military pensions, in the area of military leave of absence; for the State Employees’ Retirement System, in the areas of preliminary provisions, of membership, credited service, classes of service and eligibility for benefits, of School Employees’ Defined Contribution Plan and of contributions, of benefits, administration, funds, accounts, general provisions; and providing, as to the revisions, for construction, applicability, funding, amortization, re-amortization, recertification, liability and legal challenge.

Senator Brubaker offered amendment (A02301) which included the following:

  • Removes all language pertaining to future benefits of current employees including:
    • Reduction of the multiplier
    • Pensionable income capped at Social Security Wage Base
    • Final average salary calculated using final five years of service
    • “New York Style Limit” on employee’s salary
    • Lump sum actuarial modification/neutral option 4
    • Removes language relating to the adjustment of the collars
  • Provides language to give direction to the PSERS and SERS boards with regard to entering into agreements with financial institutions to manage and administer the DC plan.
    • Also provides language which would set a minimum number of investment plans and providers which participants may choose from
    • Adds language that would make the participation in the DC plan applicable to the judiciary upon retention and the following current members upon re-election:
      • General Assembly
      • Governor
      • Lieutenant Governor
      • Attorney General
      • Auditor General
      • Treasurer

The amendment was approved on a vote of 11-0.

Senator Brubaker offered a second amendment (A02335) which removes PSP and the Dept. of Corrections from the bill.  The amendment was approved on a vote of 11-0.

On the bill:

Senator Smith moved to table the bill indicating that appropriate time should be given to properly assess the impact of the amendments.  The motion failed 7 to 4 on a party line vote.   The bill was reported as amended on a vote of 6 to 5 with Senator Greenleaf voting with the minority.


The Senate Finance Committee met on Wednesday May 1, 2013 to consider the following bills:

SB 797, PN 817 (Browne)-This legislation allows for the Public School Employees Retirement System- PSERS to become compliant with federal law regarding military leaves of absence by amending Titles 24 (Education) and 51 (Military Affairs) of the Pennsylvania Consolidated Statutes.  The bill was reported as committed on a vote of 10-0.

SB 798, PN 818(Browne)-This legislation allows for the Public School Employees Retirement System- PSERS to become compliant with federal law regarding military leaves of absence by amending the act of March 10, 1949 (P.L.30, No.14), known as the Public School Code of 1949.  The bill was reported as committed on a vote of 10-0.

SB 803, PN 843 (Baker)-This legislation exempts all active duty military personnel from local earned income tax by amending the Local Tax Enabling Act (Act 511 of 1965).  The bill was reported as committed on a vote of 10-0.

HB 46, PN 31 (Godshall)-This legislation re-establishes the Organ and Bone Marrow Tax Credit Program.  Additionally, the bill makes the credit available retroactively to December 31, 2010, when the program previously ended.  The bill was reported as committed on a vote of 10-0.

HB 465, PN 1122 (Mackenzie)-This legislation exempts volunteer fire companies from realty transfer taxes by amending the Tax Reform Code (Act 2 of 1971).  Senator Brubaker offered an amendment (# A00803) on behalf of Senator Schwank making the effective date of exemptions retroactive to November 1, 2011.  The amendment was approved on a vote of 10-0.  The bill was reported as amended on a vote of 10-0.


The Senate finance Committee met on Wednesday, April 10, 2013 to consider the following:

SB 160, PN 111 (Yudichak)- This bill relieves members of the United States Armed Forces or other civilians serving in a combat zone or in support of the armed forces from certain local tax filing deadlines; and making an inconsistent repeal. The bill was approved as committed on a vote of 9-0.

SB 638, PN 693 (Vogel/Pileggi)-This bill amends Title 53 (Municipalities Generally) to provide a tax exemption to high tunnels (greenhouses) so they may not be considered permanent structures and categorized as real estate for tax purposes.  The bill was approved as committed on a vote of 10-1.


The Senate Finance Committee met on Wednesday March 13, 2013 to consider the following:

SB 303, PN 436 (Pileggi) – This legislation amends the Act of March 4, 1971 known as the Tax Reform Code of 1971, providing for an exclusion from the Pa. Inheritance Tax for small businesses.  The bill was reported as committed on a unanimous vote

SB 492, PN 456 (Vance) – This legislation amends the Liquid Fuels Municipal Allocation Law  (Act 655 of 1955), to provide for earlier remittance of liquid fuels formula monies due municipalities.  The bill was reported as committed on a unanimous vote.


The Senate Finance Committee met on Wednesday February 13, 2013 to consider the following bills:

SB 4, PN 347 (Brubaker)-This legislation amends the PA Constitution giving the General Assembly exclusive power in writing laws providing for the qualifications of institutions of purely public charity.  The Committee members discussed the merits of the bill.  A motion to table the bill for the purpose of holding a public hearing was offered by Sen. Teplitz.  The motion failed on a mostly party line vote of 8 to 3.  The bill was reported as committed on a vote of 9 to 2

SB 67, PN 38 (Gordner)-This bill amends the Local Tax Enabling Act, in local taxes, further providing for limitation on assessment; and, in consolidated collection of local income taxes, further providing for powers and duties of tax officer. The bill was reported as committed by unanimous vote.

SB 68, PN39 (Gordner)-This bill amends Title 53 (Municipalities Generally) of the Pennsylvania Consolidated Statutes, in local taxpayers’ bill of rights, further providing for requirements for requests.  The bill was reported as committed by unanimous vote.

SB 141, PN 96 (Fontana)-This bill provides for an angel tax credit to encourage early stage financing for start-up business investment in the commonwealth.  The bill was reported as committed by a vote of 9 to 2.

SB 266, PN 162 (Greenleaf)-This bill amends the Tax Reform Code (Act 2 of 1971) to permit a taxpayer to offset a gain in one class of income with a loss in another class of income.  The bill was reported as committed by unanimous vote.

SB 286, PN 205 (Erickson)-Amends the Taxpayer Relief Act, further providing for the definition of “income.  The bill was reported as committed by unanimous vote.