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1998 SPECIAL SESSION I

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HB 4002 Personal Property Tax Relief Act of 1998.

Introduced by: Vincent F. Callahan, Jr. | all patrons    ...    notes | add to my profiles

SUMMARY:

Personal property tax relief act of 1998. Requires the Commonwealth to pay, directly to taxpayers for tax year 1998 and to localities for tax years 1999 and thereafter, a portion of the tangible personal property tax levied on any passenger car, motorcycle, and pickup or panel truck that is owned or leased by a natural person and used for nonbusiness purposes. Reimbursements for tax year 1998 will be 12.5 percent of the tax on the first $20,000 of value of the qualifying vehicle, based on the tax rate and assessment practices in effect on August 1, 1997. For tax year 1999, the payments to localities will be 27.5 percent of the reimbursable amount. For 2000, the amount will be 47.5 percent of the reimbursable amount; for 2001, 70 percent of the reimbursable amount; and for 2002 and thereafter, 100 percent of the reimbursable amount. The level of payments will not increase under this schedule if (i) actual general fund revenues for a fiscal year are less than projected general fund revenues by one percent or more; (ii) forecasted general fund revenue growth is less than five percent compared to the preceding fiscal year; or (iii) general fund revenues available for appropriation for either year of a biennial budget are projected to be less than the general funds appropriated for such years. The cost of the program is capped at 8.5 percent of general fund revenues in fiscal year 2000-2001 or thereafter. If the program cost is expected to exceed this limitation, the level of payments will be reduced proportionately. Personal property tax bills for tax year 1999 and thereafter shall state the amount that the Commonwealth will reimburse to the locality, and taxpayers will receive a deduction for this amount.


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