HB 1092 — 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
 1   Establishing the Taxpayer Dividend Program; imposing powers and
 2      duties on the State Treasurer and Department of Revenue; and
 3      providing for payment of certain taxpayer dividends.
 4      The General Assembly of the Commonwealth of Pennsylvania
 5   hereby enacts as follows:
 6   Section 1.    Short title.
 7      This act shall be known and may be cited as the Taxpayer
 8   Dividend Program Act of 2025.
 9   Section 2.    Legislative findings.
10      The General Assembly finds and declares as follows:
11          (1)    Over the past three fiscal years, the General
12      Assembly has deposited $5.6 billion of surplus General Fund
13      money in the Budget Stabilization Reserve Fund, which is
14      commonly known as the Rainy Day Fund.
15          (2)    Many of these annual deposits in the Budget
16      Stabilization Reserve Fund exceeded the statutorily required
17      minimum amounts of up to 20% of the prior fiscal year's
18      surplus.
 1          (3)   The balance of the Budget Stabilization Reserve Fund
 2      was projected to be at least $6.4 billion by the end of the
 3      2023-2024 fiscal year.
 4          (4)   The General Fund had a projected surplus of at least
 5      $6.4 billion by the end of the 2023-2024 fiscal year.
 6          (5)   Many lobbyists, stakeholders and elected officials
 7      are lining up to spend the entire General Fund surplus and
 8      the Budget Stabilization Reserve Fund.
 9          (6)   The Governor's proposed spending increases for the
10      2024-2025 fiscal year would extinguish the General Fund
11      surplus by the end of the 2025-2026 fiscal year, triggering
12      the need to use one-time fund transfers from the Budget
13      Stabilization Reserve Fund to pay for the Commonwealth's
14      ongoing expenses.
15          (7)   Rather than using the Commonwealth's General Fund
16      surplus and Budget Stabilization Reserve Fund balance to pay
17      for unsustainable spending through expanded programs that
18      will create ongoing increased spending, the General Assembly
19      should return a portion of the surplus and balance to the
20      resident individual taxpayers who paid the taxes that lead to
21      the surplus and balance.
22   Section 3.   Definitions.
23      The following words and phrases when used in this act shall
24   have the meanings given to them in this section unless the
25   context clearly indicates otherwise:
26      "Program."   The Taxpayer Dividend Program established by this
27   act.
28      "Resident individual."   The term shall have the same meaning
29   given to it in section 301(p) of the act of March 4, 1971
30   (P.L.6, No.2), known as the Tax Reform Code of 1971.

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 1      "Surplus."        As defined in section 1702-A(d) of the act of
 2   April 9, 1929 (P.L.343, No.176), known as The Fiscal Code.
 3      "Taxpayer dividend."       The amount determined under section
 4   7(b).
 5   Section 4.     Taxpayer Dividend Program.
 6      (a)   Establishment.--The Taxpayer Dividend Program is
 7   established in the Treasury Department.
 8      (b)   Purpose.--The program shall refund to the Commonwealth's
 9   taxpaying families a portion of the budget surpluses that have
10   accrued in the General Fund and the Budget Stabilization Reserve
11   Fund.
12   Section 5.     Program funding.
13      (a)   Source of funding.--For the 2025-2026 fiscal year, the
14   General Assembly may appropriate amounts from the General Fund
15   to the Treasury Department for the purpose of the program.
16      (b)   Limitations.--
17            (1)   The amount of the appropriation authorized under
18      subsection (a) from the General Fund may not exceed the
19      surplus available in the General Fund as of June 30, 2024.
20            (2)   The amount of the appropriation authorized under
21      subsection (a) from the Budget Stabilization Reserve Fund
22      shall be subject to the following:
23                  (i)    The amount of the appropriation may not exceed
24            the difference between the amount of money in the Budget
25            Stabilization Reserve Fund as of June 30, 2024, and an
26            amount equal to 6% of the revenues of the General Fund
27            for the 2024-2025 fiscal year.
28                  (ii)    Notwithstanding section 1703-A(b) of the act of
29            April 9, 1929 (P.L.343, No.176), known as The Fiscal
30            Code, the appropriation shall be enacted though approval

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 1            of a separate appropriation bill by a vote of two-thirds
 2            of the members elected to the Senate and the House of
 3            Representatives.
 4            (3)   Any money appropriated under this subsection which
 5      would otherwise lapse to the General Fund shall be
 6      transferred to the Budget Stabilization Reserve Fund.
 7   Section 6.     Determination of eligible resident individuals.
 8      No later than 45 days after enactment of an appropriation
 9   under section 5(a), the Department of Revenue shall determine
10   the following:
11            (1)   The name and last known address of every resident
12      individual who timely filed an individual annual return under
13      Article III of the act of March 4, 1971 (P.L.6, No.2), known
14      as the Tax Reform Code of 1971, for the taxable year
15      beginning January 1, 2024, and who timely paid any tax
16      liability due.
17            (2)   The name and last known address of every resident
18      individual who was included in a timely filed joint annual
19      return under Article III of the Tax Reform Code of 1971 for
20      the taxable year beginning January 1, 2024, and who timely
21      paid any tax liability due.
22            (3)   If known, the automated clearinghouse information
23      for each resident individual described under paragraphs (1)
24      and (2).
25   Section 7.     Determination of amount of taxpayer dividend for
26                  each resident individual.
27      (a)   Determination.--No later than 15 days after the
28   determination under section 6, the Department of Revenue shall
29   determine the amount of the taxpayer dividend under subsection
30   (b).

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 1      (b)   Calculation of taxpayer dividend.--The taxpayer dividend
 2   shall be the lesser of the following:
 3            (1)   the total amount appropriated under section 5(a)
 4      divided by the sum of the total number of resident
 5      individuals described under section 6(1) and (2); or
 6            (2)   the amount of $1,000.
 7   Section 8.     Transmittal of names, last known addresses and
 8                  payment information.
 9      No later than 21 days after the determination under section
10   6, the Department of Revenue shall transmit to the State
11   Treasurer all of the following information:
12            (1)   The name of each resident individual under section
13      6(1) and (2).
14            (2)   The last known address for each resident individual
15      under section 6(1) and (2).
16            (3)   The automated clearinghouse information under
17      section 6(3).
18            (4)   The amount of the taxpayer dividend determined under
19      section 7(b).
20   Section 9.     Payments.
21      (a)   Duty of State Treasurer.--No later than 15 days after
22   receipt of the information transmitted under section 8, the
23   State Treasurer shall disburse to each resident individual under
24   section 8(1) a payment in the amount of the taxpayer dividend.
25      (b)   Payment method.--
26            (1)   Except as provided under paragraph (2), the taxpayer
27      dividend shall be paid to each resident individual under
28      section 6(1) and (2) in the form of a check mailed to the
29      resident individual's last known address.
30            (2)   If the Department of Revenue transmits automated

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 1      clearinghouse information for a resident individual under
 2      section 6(3), the State Treasurer shall pay the taxpayer
 3      dividend through an automated clearinghouse transaction.
 4   Section 10.    Reports.
 5      (a)   Report required.--No later than March 31, 2025, or 90
 6   days after the payments are made under section 9, whichever is
 7   later, the Treasury Department, in consultation with the
 8   Department of Revenue, shall publish a report on the program.
 9      (b)   Publication and transmission.--The State Treasurer shall
10   publish the report on the Treasury Department's publicly
11   accessible Internet website and shall transmit a copy of the
12   report to the chair and minority chair of the Appropriations
13   Committee of the Senate and the chair and minority chair of the
14   Appropriations Committee of the House of Representatives.
15      (c)   Report contents.--The report shall include the following
16   information:
17            (1)   The total dollar amount of taxpayer dividends paid
18      to resident individuals under this act.
19            (2)   The total number of resident individuals who
20      received a payment under this act.
21   Section 11.    Effective date.
22      This act shall take effect immediately.




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