HB 1362 — 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.   1549

                    THE GENERAL ASSEMBLY OF PENNSYLVANIA



                        HOUSE BILL
                        No. 1362
                                                Session of
                                                  2025

     INTRODUCED BY GAYDOS, KUTZ, KAUFFMAN, KENYATTA, HAMM,
        M. MACKENZIE, ROWE, BANTA, SCIALABBA AND BERNSTINE,
        APRIL 30, 2025

     REFERRED TO COMMITTEE ON FINANCE, APRIL 30, 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 four fiscal years, the General
12      Assembly has deposited $6.3 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 $7.49 billion by the end of the
 3      2024-2025 fiscal year.
 4          (4)   The General Fund had a projected surplus of at least
 5      $3.2 billion by the end of the 2024-2025 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      2025-2026 fiscal year would extinguish what is left of the
11      General Fund surplus and would require the use of fund
12      transfers from the Budget Stabilization Reserve Fund.
13          (7)   Rather than using the Commonwealth's General Fund
14      surplus and Budget Stabilization Reserve Fund balance to pay
15      for unsustainable spending through expanded programs that
16      will create ongoing increased spending, the General Assembly
17      should return a portion of the surplus to the resident
18      individual taxpayers who paid the taxes that lead to the
19      surplus and balance.
20   Section 3.   Definitions.
21      The following words and phrases when used in this act shall
22   have the meanings given to them in this section unless the
23   context clearly indicates otherwise:
24      "Program."   The Taxpayer Dividend Program established by this
25   act.
26      "Resident individual."   The term shall have the same meaning
27   given to it in section 301(p) of the act of March 4, 1971
28   (P.L.6, No.2), known as the Tax Reform Code of 1971.
29      "Surplus."   As defined in section 1702-A(d) of the act of
30   April 9, 1929 (P.L.343, No.176), known as The Fiscal Code.

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 1      "Taxpayer dividend."     The amount determined under section
 2   7(b).
 3   Section 4.     Taxpayer Dividend Program.
 4      (a)   Establishment.--The Taxpayer Dividend Program is
 5   established in the Treasury Department.
 6      (b)   Purpose.--The program shall refund to the Commonwealth's
 7   taxpaying families a portion of the budget surpluses that have
 8   accrued in the General Fund and the Budget Stabilization Reserve
 9   Fund.
10   Section 5.     Program funding.
11      (a)   Source of funding.--For the 2025-2026 fiscal year, the
12   General Assembly may appropriate amounts from the General Fund
13   to the Treasury Department for the purpose of the program.
14      (b)   Limitations.--
15            (1)   The amount of the appropriation authorized under
16      subsection (a) from the General Fund may not exceed the
17      surplus available in the General Fund as of June 30, 2025.
18            (2)   Any money appropriated under this subsection which
19      would otherwise lapse to the General Fund shall be
20      transferred to the Budget Stabilization Reserve Fund.
21   Section 6.     Determination of eligible resident individuals.
22      No later than 45 days after enactment of an appropriation
23   under section 5(a), the Department of Revenue shall determine
24   the following:
25            (1)   The name and last known address of every resident
26      individual who timely filed an individual annual return under
27      Article III of the act of March 4, 1971 (P.L.6, No.2), known
28      as the Tax Reform Code of 1971, for the taxable year
29      beginning January 1, 2024, and who timely paid any tax
30      liability due.

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 1            (2)   The name and last known address of every resident
 2      individual who was included in a timely filed joint annual
 3      return under Article III of the Tax Reform Code of 1971 for
 4      the taxable year beginning January 1, 2024, and who timely
 5      paid any tax liability due.
 6            (3)   If known, the automated clearinghouse information
 7      for each resident individual described under paragraphs (1)
 8      and (2).
 9   Section 7.     Determination of amount of taxpayer dividend for
10                  each resident individual.
11      (a)   Determination.--No later than 15 days after the
12   determination under section 6, the Department of Revenue shall
13   determine the amount of the taxpayer dividend under subsection
14   (b).
15      (b)   Calculation of taxpayer dividend.--The taxpayer dividend
16   shall be the lesser of the following:
17            (1)   the total amount appropriated under section 5(a)
18      divided by the sum of the total number of resident
19      individuals described under section 6(1) and (2); or
20            (2)   the amount of $1,000.
21   Section 8.     Transmittal of names, last known addresses and
22                  payment information.
23      No later than 21 days after the determination under section
24   6, the Department of Revenue shall transmit to the State
25   Treasurer all of the following information:
26            (1)   The name of each resident individual under section
27      6(1) and (2).
28            (2)   The last known address for each resident individual
29      under section 6(1) and (2).
30            (3)   The automated clearinghouse information under

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 1      section 6(3).
 2            (4)   The amount of the taxpayer dividend determined under
 3      section 7(b).
 4   Section 9.     Payments.
 5      (a)   Duty of State Treasurer.--No later than 15 days after
 6   receipt of the information transmitted under section 8, the
 7   State Treasurer shall disburse to each resident individual under
 8   section 8(1) a payment in the amount of the taxpayer dividend.
 9      (b)   Payment method.--
10            (1)   Except as provided under paragraph (2), the taxpayer
11      dividend shall be paid to each resident individual under
12      section 6(1) and (2) in the form of a check mailed to the
13      resident individual's last known address.
14            (2)   If the Department of Revenue transmits automated
15      clearinghouse information for a resident individual under
16      section 6(3), the State Treasurer shall pay the taxpayer
17      dividend through an automated clearinghouse transaction.
18   Section 10.     Reports.
19      (a)   Report required.--No later than March 31, 2026, or 90
20   days after the payments are made under section 9, whichever is
21   later, the Treasury Department, in consultation with the
22   Department of Revenue, shall publish a report on the program.
23      (b)   Publication and transmission.--The State Treasurer shall
24   publish the report on the Treasury Department's publicly
25   accessible Internet website and shall transmit a copy of the
26   report to the chair and minority chair of the Appropriations
27   Committee of the Senate and the chair and minority chair of the
28   Appropriations Committee of the House of Representatives.
29      (c)   Report contents.--The report shall include the following
30   information:

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1          (1)    The total dollar amount of taxpayer dividends paid
2      to resident individuals under this act.
3          (2)    The total number of resident individuals who
4      received a payment under this act.
5   Section 11.   Effective date.
6      This act shall take effect immediately.




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