Establishing the Taxpayer Dividend Program; imposing powers and duties on the State Treasurer and Department of Revenue; and providing for payment of certain taxpayer dividends.
Summary
HB1092 would create the Taxpayer Dividend Program within the Pennsylvania Treasury Department to return a portion of state budget surpluses to resident individual taxpayers. The bill is built around legislative findings that the Commonwealth has accumulated large General Fund and Rainy Day Fund balances and argues that those funds should be returned to taxpayers rather than used to support additional ongoing spending. It authorizes the General Assembly to appropriate money for the program in fiscal year 2025-2026, subject to caps tied to the available General Fund surplus and the amount above a 6% reserve threshold in the Budget Stabilization Reserve Fund.
If funded, the Department of Revenue would identify eligible resident individuals who timely filed and paid their 2024 Pennsylvania personal income tax, then calculate each taxpayer dividend. The payment would be the lesser of an equal-share distribution of the appropriation or $1,000 per eligible taxpayer, and the State Treasurer would issue the payments by check or direct deposit if banking information is available. The bill also requires a public report on total payments and recipients after the program is completed.
Impact
The bill would create a new state-run rebate program and direct the Department of Revenue and State Treasurer to compile taxpayer eligibility data, calculate payments, and distribute funds. It would not change the underlying tax rates or tax liability rules, but it would affect the use of General Fund and Budget Stabilization Reserve Fund balances by authorizing a one-time appropriation for taxpayer dividends and setting a supermajority requirement for the reserve-fund appropriation. It also references and relies on existing definitions in the Tax Reform Code of 1971 and The Fiscal Code, tying the program to Pennsylvania’s personal income tax filing system and budget reserve framework.
Sentiment
The bill appears to be framed positively by its sponsors as a taxpayer-relief measure and a check on spending growth, with the stated goal of returning surplus money to the residents who paid it in. The available context does not include committee debate or recorded votes, so there is no direct evidence of broader legislative support or opposition in the materials provided. Based on the text alone, the proposal reflects a fiscally conservative sentiment favoring rebates over expanded state spending.
Contention
The main point of contention is likely the use of surplus and Rainy Day Fund dollars: supporters want to return money to taxpayers, while the bill’s findings criticize efforts to spend the surplus on ongoing programs. Another likely issue is the bill’s funding structure, including the cap on the appropriation, the requirement that reserve-fund spending be approved by a two-thirds vote in both chambers, and the practical question of whether the Commonwealth should preserve reserves for future fiscal stability. The bill also implicitly raises questions about who qualifies, since payments are limited to resident individuals who timely filed and paid 2024 tax liability, excluding nonresidents and those who did not file or pay on time.
Establishing the Taxpayer Dividend Program; imposing powers and duties on the State Treasurer and Department of Revenue; and providing for payment of certain taxpayer dividends.
Mandates that any surplus state tax revenue received in any fiscal year would be refunded to the taxpayers of this state on a proportional basis in relation to the personal income tax liability incurred by the taxpayers in that fiscal year.