§ 19-1508.  Refunds and Forgiveness for Poverty Income. 319
   (1)   Low Income Residents. 319.1
      (a)   Beginning with the calendar year January 1, 2015 through December 31, 2015, and for each calendar year through June 30, 2020, the rate of tax imposed on Low Income Residents under subsections 19-1502(1)(a) and (2)(a) shall be one half of one percent (0.5%) less than the rate of tax imposed upon Residents during such periods.
      (b)   Beginning January 1, 2020, the rate of tax imposed on Low Income Residents under subsection 19-1502(1)(a) (tax on salaries, wages, etc.) shall be as follows:
         (.1)   From January 1, 2020, through June 30, 2020: 1.8712%.
         (.2)   For the fiscal year July 1, 2020, through June 30, 2021, and thereafter: zero.
      (c)   Beginning January 1, 2020, the rate of tax imposed on Low Income Residents under subsection 19-1502(2)(a) (tax on net profits) shall be as follows:
         (.1)   For the calendar year January 1, 2020, through December 31, 2020, and thereafter: zero.
   (2)   Low Income Non-Residents. 319.2
      (a)   Beginning with the calendar year January 1, 2015 through December 31, 2015, and for each calendar year through June 30, 2020, the rate of tax imposed on Low Income Non-Residents under subsections 19-1502(1)(b) and (2)(b) shall be one half of one percent (0.5%) less than the rate of tax imposed upon Non-Residents during such periods.
      (b)   Beginning January 1, 2020, the rate of tax imposed on Low Income Non-Residents under subsection 19-1502(1)(b) (tax on salaries, wages, etc.) shall be as follows:
         (.1)   From January 1, 2020, through June 30, 2020: 2.9481%.
         (.2)   For the fiscal year July 1, 2020, through June 30, 2021, and thereafter: one and one half percent (1.5%); provided that, this rate shall be reduced to zero when the tax imposed pursuant to Chapter 19-2800 ("Pennsylvania Intergovernmental Cooperation Authority Tax on Wages and Net Profits") expires.
      (c)   Beginning January 1, 2020, the rate of tax imposed on Low Income Non-Residents under subsection 19-1502(2)(b) (tax on net profits) shall be as follows:
         (.1)   For the calendar year January 1, 2020, through December 31, 2020, and thereafter: one and one half percent (1.5%); provided that, this rate shall be reduced to zero when the tax imposed pursuant to Chapter 19-2800 ("Pennsylvania Intergovernmental Cooperation Authority Tax on Wages and Net Profits") expires.
   (3)   A person subject to the rates described in subsections (1) and (2) shall be entitled to a refund of any taxes paid in excess of the amounts due under such subsections upon application to the Department on forms prepared by the Department. The Department shall post a downloadable version of the form on its website, with a link to that form on the main page of the website.
      (a)   Any person who has filed a Pa. Schedule SP ("Special Tax Forgiveness") with the Commonwealth for the relevant calendar year may attach a signed copy of that schedule to the Department's form, in which case the Department shall use the information on that form to determine the eligibility of the person for a refund under this Section.
      (b)   The Department's form shall: advise applicants of the existence of the State Low-Income Tax Provisions; explain that a person who is eligible for any tax forgiveness under those provisions is also entitled to relief under this Section if they have had tax withheld pursuant to this Chapter; and explain that if they have filed a Pa. Schedule SP, they must attach a copy of that form to the Department's application form.
   (4)   For calendar year 2015 and for each year thereafter, each employer that withholds taxes imposed by this Chapter shall provide each employee from whom it withholds such taxes a copy of the application prepared by the Department at the same time that it provides the employee with his or her federal Form W-2 or comparable form. The Department shall notify each employer of this responsibility and shall direct employers to the downloadable version of the form on its website.
   (5)   The withholding and filing requirements of this Chapter shall continue to apply to, and in connection with, persons entitled to refunds and forgiveness under this Section.
   (6)   The Department shall, within one hundred eighty (180) days of the date that this Section 19-1508 first becomes law, develop procedures and forms whereby the persons entitled to refunds and forgiveness under this Section can obtain the relief specified herein. The first such refunds shall be made no sooner than July 1, 2016, nor later than September 30, 2016, based upon returns filed for calendar year 2015.
   (7)   No later than one year after the date that this Section 19-1508 first becomes law, the Department shall submit to the Mayor, the Finance Director, the President of City Council, and the Chief Clerk of City Council a report assessing the feasibility of automatically generating refunds to eligible taxpayers who have filed a Pa. Schedule SP, without requiring such taxpayers to submit applications for refunds authorized by this Section.

 

Notes

319
   Added, Bill No. 040397 (became law June 10, 2004); amended, Bill No. 060007 (approved June 15, 2006); former Section repealed and new Section added, Bill No. 080161 (approved May 22, 2008); repealed, Bill No. 120174 (approved June 29, 2012); added, Bill No. 140140 (approved June 17, 2014).
319.1
   Amended, Bill No. 200016 (became law March 12, 2020).
319.2
   Amended, Bill No. 200016 (became law March 12, 2020).