HARRISBURG – The Senate of Pennsylvania unanimously advanced a measure today that closes a loophole that made many senior citizens ineligible for the state’s Property Tax/Rent Rebate program, according to the bill’s sponsor, Sen. Kristin Phillips-Hill (R-York).
Phillips-Hill said she noticed the problem when senior citizens who applied were deemed ineligible for the state’s popular program aimed at reducing school property taxes and rental costs despite meeting the qualifications.
The problem arose when senior citizens transferred retirement funds into other retirement accounts, which would show up as available income on an application and make the individual ineligible. Phillips-Hill’s legislation would allow retirees to transfer those retirement account investments between accounts within 60 days without counting toward income when applying for property tax or rent relief. If those funds are not invested into another qualified retirement plan within 60 days, the funds will be considered income.
“With extreme market volatility, we need to provide as many protections as possible for senior citizens on a fixed income to best protect their hard-earned retirement accounts. This legislation closes a loophole that unfortunately made Pennsylvania seniors ineligible for property tax and rent reductions,” Phillips-Hill said.
The bill moves to the House of Representatives for its consideration.