An Act 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.

PRINTER'S NO. 1209
THE GENERAL ASSEMBLY OF PENNSYLVANIA
HOUSE BILL
No. 1092
Session of
2025
INTRODUCED BY GAYDOS, KUTZ, KAUFFMAN, KENYATTA, HAMM,
M. MACKENZIE, ROWE, BANTA, SCIALABBA AND BERNSTINE,
APRIL 1, 2025
REFERRED TO COMMITTEE ON FINANCE, APRIL 1, 2025
AN ACT
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.
The General Assembly of the Commonwealth of Pennsylvania
hereby enacts as follows:
Section 1. Short title.
This act shall be known and may be cited as the Taxpayer
Dividend Program Act of 2025.
Section 2. Legislative findings.
The General Assembly finds and declares as follows:
(1) Over the past three fiscal years, the General
Assembly has deposited $5.6 billion of surplus General Fund
money in the Budget Stabilization Reserve Fund, which is
commonly known as the Rainy Day Fund.
(2) Many of these annual deposits in the Budget
Stabilization Reserve Fund exceeded the statutorily required
minimum amounts of up to 20% of the prior fiscal year's
surplus.
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(3) The balance of the Budget Stabilization Reserve Fund
was projected to be at least $6.4 billion by the end of the
2023-2024 fiscal year.
(4) The General Fund had a projected surplus of at least
$6.4 billion by the end of the 2023-2024 fiscal year.
(5) Many lobbyists, stakeholders and elected officials
are lining up to spend the entire General Fund surplus and
the Budget Stabilization Reserve Fund.
(6) The Governor's proposed spending increases for the
2024-2025 fiscal year would extinguish the General Fund
surplus by the end of the 2025-2026 fiscal year, triggering
the need to use one-time fund transfers from the Budget
Stabilization Reserve Fund to pay for the Commonwealth's
ongoing expenses.
(7) Rather than using the Commonwealth's General Fund
surplus and Budget Stabilization Reserve Fund balance to pay
for unsustainable spending through expanded programs that
will create ongoing increased spending, the General Assembly
should return a portion of the surplus and balance to the
resident individual taxpayers who paid the taxes that lead to
the surplus and balance.
Section 3. Definitions.
The following words and phrases when used in this act shall
have the meanings given to them in this section unless the
context clearly indicates otherwise:
"Program." The Taxpayer Dividend Program established by this
act.
"Resident individual." The term shall have the same meaning
given to it in section 301(p) of the act of March 4, 1971
(P.L.6, No.2), known as the Tax Reform Code of 1971.
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"Surplus." As defined in section 1702-A(d) of the act of
April 9, 1929 (P.L.343, No.176), known as The Fiscal Code.
"Taxpayer dividend." The amount determined under section
7(b).
Section 4. Taxpayer Dividend Program.
(a) Establishment.--The Taxpayer Dividend Program is
established in the Treasury Department.
(b) Purpose.--The program shall refund to the Commonwealth's
taxpaying families a portion of the budget surpluses that have
accrued in the General Fund and the Budget Stabilization Reserve
Fund.
Section 5. Program funding.
(a) Source of funding.--For the 2025-2026 fiscal year, the
General Assembly may appropriate amounts from the General Fund
to the Treasury Department for the purpose of the program.
(b) Limitations.--
(1) The amount of the appropriation authorized under
subsection (a) from the General Fund may not exceed the
surplus available in the General Fund as of June 30, 2024.
(2) The amount of the appropriation authorized under
subsection (a) from the Budget Stabilization Reserve Fund
shall be subject to the following:
(i) The amount of the appropriation may not exceed
the difference between the amount of money in the Budget
Stabilization Reserve Fund as of June 30, 2024, and an
amount equal to 6% of the revenues of the General Fund
for the 2024-2025 fiscal year.
(ii) Notwithstanding section 1703-A(b) of the act of
April 9, 1929 (P.L.343, No.176), known as The Fiscal
Code, the appropriation shall be enacted though approval
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of a separate appropriation bill by a vote of two-thirds
of the members elected to the Senate and the House of
Representatives.
(3) Any money appropriated under this subsection which
would otherwise lapse to the General Fund shall be
transferred to the Budget Stabilization Reserve Fund.
Section 6. Determination of eligible resident individuals.
No later than 45 days after enactment of an appropriation
under section 5(a), the Department of Revenue shall determine
the following:
(1) The name and last known address of every resident
individual who timely filed an individual annual return under
Article III of the act of March 4, 1971 (P.L.6, No.2), known
as the Tax Reform Code of 1971, for the taxable year
beginning January 1, 2024, and who timely paid any tax
liability due.
(2) The name and last known address of every resident
individual who was included in a timely filed joint annual
return under Article III of the Tax Reform Code of 1971 for
the taxable year beginning January 1, 2024, and who timely
paid any tax liability due.
(3) If known, the automated clearinghouse information
for each resident individual described under paragraphs (1)
and (2).
Section 7. Determination of amount of taxpayer dividend for
each resident individual.
(a) Determination.--No later than 15 days after the
determination under section 6, the Department of Revenue shall
determine the amount of the taxpayer dividend under subsection
(b).
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(b) Calculation of taxpayer dividend.--The taxpayer dividend
shall be the lesser of the following:
(1) the total amount appropriated under section 5(a)
divided by the sum of the total number of resident
individuals described under section 6(1) and (2); or
(2) the amount of $1,000.
Section 8. Transmittal of names, last known addresses and
payment information.
No later than 21 days after the determination under section
6, the Department of Revenue shall transmit to the State
Treasurer all of the following information:
(1) The name of each resident individual under section
6(1) and (2).
(2) The last known address for each resident individual
under section 6(1) and (2).
(3) The automated clearinghouse information under
section 6(3).
(4) The amount of the taxpayer dividend determined under
section 7(b).
Section 9. Payments.
(a) Duty of State Treasurer.--No later than 15 days after
receipt of the information transmitted under section 8, the
State Treasurer shall disburse to each resident individual under
section 8(1) a payment in the amount of the taxpayer dividend.
(b) Payment method.--
(1) Except as provided under paragraph (2), the taxpayer
dividend shall be paid to each resident individual under
section 6(1) and (2) in the form of a check mailed to the
resident individual's last known address.
(2) If the Department of Revenue transmits automated
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clearinghouse information for a resident individual under
section 6(3), the State Treasurer shall pay the taxpayer
dividend through an automated clearinghouse transaction.
Section 10. Reports.
(a) Report required.--No later than March 31, 2025, or 90
days after the payments are made under section 9, whichever is
later, the Treasury Department, in consultation with the
Department of Revenue, shall publish a report on the program.
(b) Publication and transmission.--The State Treasurer shall
publish the report on the Treasury Department's publicly
accessible Internet website and shall transmit a copy of the
report to the chair and minority chair of the Appropriations
Committee of the Senate and the chair and minority chair of the
Appropriations Committee of the House of Representatives.
(c) Report contents.--The report shall include the following
information:
(1) The total dollar amount of taxpayer dividends paid
to resident individuals under this act.
(2) The total number of resident individuals who
received a payment under this act.
Section 11. Effective date.
This act shall take effect immediately.
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