House Finance Committee advances state earned-income credit, beginning-farmer credit and three tax-collection and lottery bills

HARRISBURG — The House Finance Committee on Wednesday reported several tax-related bills to the full House, advancing a state earned-income tax credit and other measures affecting local tax collection and the state lottery.

The most contested measure was House Bill 820, the "Working Pennsylvania" earned-income tax credit. The committee reported the bill by a roll-call vote of 17 yes and 9 no after members debated its fiscal impact and policy goals.

"This is an earned income tax credit that mirrors the federal earned income tax credit," Representative Sapi said in remarks summarizing the bill's intent, adding that the credit supports low-wage workers and helps them stay in the workforce. Committee materials include a fiscal estimate from the Department of Revenue projecting a first-year cost of about $598,000,000 and higher annual costs in later years. Representative Fritz warned the committee that "this is a $600,000,000 hit" and said she could not support the bill without offsetting reductions in other spending. Representative Jones and Representative Waxman spoke in favor, noting expected returns to the economy and lower reliance on social services.

The committee also reported House Bill 242, which updates the beginning-farmer tax credit. Committee executive director Mark Forman summarized the bill and Representative Paul Friel, the prime sponsor, told the panel the bill extends the credit from one year to three and expands eligibility so both buyer and seller in qualifying transfers can claim the credit. The committee adopted a technical Department of Revenue amendment (Amendment 407) and reported HB 242 as amended by a vote of 25 yes and 1 no.

Two bills sponsored by Representative Webster that would allow local tax collectors to recoup certain costs of collecting delinquent taxes also advanced. House Bill 852 (recoup costs for delinquent business taxes) was amended to permit either certified mail or three first-class mailings for notice (Amendment A382) and, after debate about protections for taxpayers and private collection practices, was reported (committee record corrected to 21 yes, 5 no). Representative Webster said the amendment preserves a path for proof of notice while giving local collectors flexibility; opponents said removing certified-mail requirements risks harming low-income households who might not receive notice.

House Bill 853, which would permit county tax collectors to impose and recoup costs for collecting delinquent per-capita, poll and occupation taxes, was amended to strike language that would have barred civil suits and would remove contingent audit fees (Amendment A396). The committee reported HB 853 as amended by a vote of 23 yes and 3 no.

Late in the meeting the committee considered House Bill 1058, which would repeal the lottery profit-margin mandate. Committee materials included a Department of Revenue analysis projecting a 10-year increase in lottery-generated funds (cited in committee materials as about $1.24 billion over 10 years). Representative Schusterman sponsored the bill; Representative Stanback and others said removing the mandate could allow the Pennsylvania Lottery to offer larger prizes and increase net revenue for senior programs. The committee approved an amendment (A360) that adds language directing the lottery to maximize profits for programs that benefit Commonwealth seniors, and it reported HB 1058 as amended by a vote of 25 yes and 1 no.

Votes at a glance

- House Bill 820 (Working Pennsylvania earned-income tax credit): reported from Finance Committee, 17 yes, 9 no. - House Bill 242 (Beginning Farmer Tax Credit), as amended (Amendment 407): reported from Finance Committee, 25 yes, 1 no. - House Bill 852 (permits tax collectors to recoup costs for delinquent business taxes), as amended (Amendment A382 — certified letter or three first-class letters): reported from Finance Committee, corrected to 21 yes, 5 no. - House Bill 853 (permits county tax collectors to recoup costs for delinquent county poll and occupation taxes), as amended (Amendment A396 — strikes prohibition on civil suits/contingent audit fee): reported from Finance Committee, 23 yes, 3 no. - House Bill 1058 (repeal lottery profit-margin mandate), as amended (Amendment A360 — directs lottery to maximize support for senior programs): reported from Finance Committee, 25 yes, 1 no.

What the committee said

Committee executive director Mark Forman provided bill summaries before debate. On HB 852 he summarized the amendment by saying: "The amendment would allow either a certified letter or 3 first class letters." Representative Webster said the amendment gives local tax collectors an option to use certified mail or repeated first-class mailings to reach delinquent taxpayers. Opponents repeatedly urged caution, saying reduced notice requirements could leave wage garnishments or other collection actions unexplained to affected taxpayers.

What happens next

All bills advanced to the full House for further consideration. The committee discussion shows the principal points the House floor is likely to revisit: the fiscal cost and structure of a state earned-income tax credit; taxpayer-notification practices and oversight of private collection firms; and the effect of lottery law changes on funding for senior programs.

Ending note

Committee members made several procedural corrections on the record during the meeting; votes and amendment language recorded in committee materials should be consulted for final tallies and exact statutory text before legislative action on the floor.