PA
Pennsylvania House Bill HB2574

Pennsylvania 2023-2024 Regular Session

Pennsylvania House Bill HB2574

Introduced
9/19/24  

Caption

In personal income tax, further providing for definitions.

Impact

The passage of HB 2574 would significantly impact how personal income tax is interpreted and implemented in Pennsylvania. The clearer definitions provided in the bill would assist both taxpayers and tax authorities in understanding what constitutes taxable income versus non-taxable income. This could lead to more streamlined tax filing processes and greater compliance with tax regulations, ultimately benefitting state revenue collection.

Summary

House Bill 2574 seeks to amend the Tax Reform Code of 1971 by clarifying definitions related to personal income tax. This bill adds specificity to the term 'compensation' to ensure it encompasses various forms of remuneration, such as salaries, bonuses, and incentive payments. Additionally, it outlines exclusions from this definition, notably items such as retirement benefits and public assistance payments. By refining these definitions, HB2574 aims to ensure clarity in the application of personal income taxes as outlined in state law.

Sentiment

Overall, the sentiment surrounding HB 2574 appears to be cautiously optimistic. Proponents of the bill argue that it brings necessary clarity to tax definitions, alleviating confusion among taxpayers and simplifying enforcement for state tax agencies. There is a sense that such changes could modernize the state's approach to income tax, reflecting contemporary employment practices and compensation structures. However, some concerns have been raised regarding potential unintended consequences for specific groups who might benefit from the previous, less defined rules.

Contention

Notable points of contention include debates around the exclusions outlined in the bill. Some legislators are concerned that excluding specific types of compensation might disproportionately affect low-income individuals or those receiving various types of assistance. These discussions emphasize the balance that must be struck between ensuring a fair tax system and maintaining adequate revenue for state programs. The legislative process is likely to see continued deliberation on these definitions and their implications for different demographic groups across Pennsylvania.

Latest HB2574 Activity

Companion Bills

No companion bills found.

Previously Filed As

PA HB1537

In personal income tax, further providing for definitions.

PA HB623

In personal income tax, further providing for definitions.

PA HB2239

In personal income tax, further providing for definitions and for classes of income.

PA HB22

In personal income tax, further providing for definitions and for classes of income.

PA HB1357

In personal income tax, further providing for definitions and providing for provisions for overtime pay.

PA HB2085

In personal income tax, further providing for definitions and for classes of income.

PA HB1306

In personal income tax, further providing for definitions and for classes of income.

PA HB219

In personal income tax, further providing for definitions and for classes of income.

PA HB1610

In personal income tax, further providing for definitions and for income taxes imposed by other states and providing for provisions for overtime pay; in corporate net income tax, further providing for definitions, for determination of net loss deduction, for imposition of tax, for reports and payment of tax, for timely mailing treated as timely filing and payment and for additional withholding requirements, repealing provisions relating to consolidated reports, further providing for extension of time to file reports, for changes made by Federal Government, for limitations on assessments, for definitions, for manufacturing innovation and reinvestment deduction, for enforcement, rules and regulations, inquisitorial powers of the department, for retention of records and for penalties; in tax credit and tax benefit administration, further providing for definitions and providing for application of tax credits or tax benefits to a unitary business; providing for working Pennsylvanians tax credit; and, in general provisions, further providing for estimated tax, for underpayment of estimated tax and for restatement of tax liability under treaties.

PA HB60

In corporate net income tax, further providing for definitions.

Similar Bills

No similar bills found.