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(a) The General Assembly, in recognition of the powers contained in section 2(b)(ii) of Article VIII of the Constitution of the Commonwealth of Pennsylvania which provides therein for the establishing as a class or classes of subjects of taxation the property or privileges of persons who, because of poverty are determined to be in need of special tax provisions hereby declares as its legislative intent and purpose to implement such power under such constitutional provision by establishing special tax provisions as hereinafter provided in this act.
(b) The General Assembly having determined that there are persons within this Commonwealth whose incomes are such that imposition of a tax thereon would deprive them and their dependents of the bare necessities of life and having further determined that poverty is a relative concept inextricably joined with actual income and the number of people dependent upon such income deems it to be a matter of public policy to provide special tax provisions for that class of persons hereinafter designated to relieve their economic burden.
(c) For the taxable year 1974 and each year thereafter any claimant who meets the following standards of eligibility established by this act as the test for poverty shall be deemed a separate class of subject of taxation, and, as such, shall be entitled to the benefit of the special provisions of this act.
(d) Any claim for special tax provisions hereunder shall be determined in accordance with the following:
(1) If the poverty income of the claimant during an entire taxable year is six thousand five hundred dollars ($6,500) or less, or, in the case of a married claimant, if the joint poverty income of the claimant and the claimant's spouse during an entire taxable year is thirteen thousand dollars ($13,000) or less, the claimant shall be entitled to a refund or forgiveness of any moneys which have been paid over to (or would except for the provisions of this act be payable to) the Commonwealth under the provisions of this article, with an additional income allowance of nine thousand five hundred dollars ($9,500) for each dependent of the claimant. For purposes of this subsection, a claimant shall not be considered to be married if:
(i) The claimant and the claimant's spouse file separate returns; and
(ii) The claimant and the claimant's spouse live apart at all times during the last six months of the taxable year or are separated pursuant to a written separation agreement.
(2) If the poverty income of the claimant during an entire taxable year does not exceed the poverty income limitations prescribed by clause (1) by more than the dollar category contained in subclauses (i), (ii), (iii), (iv), (v), (vi), (vii), (viii) or (ix) of this clause, the claimant shall be entitled to a refund or forgiveness based on the per centage prescribed in such subclauses of any moneys which have been paid over to (or would have been except for the provisions herein be payable to) the Commonwealth under this article:
(i) Ninety per cent if not in excess of two hundred fifty dollars ($250).
(ii) Eighty per cent if not in excess of five hundred dollars ($500).
(iii) Seventy per cent if not in excess of seven hundred fifty dollars ($750).
(iv) Sixty per cent if not in excess of one thousand dollars ($1,000).
(v) Fifty per cent if not in excess of one thousand two hundred fifty dollars ($1,250).
(vi) Forty per cent if not in excess of one thousand five hundred dollars ($1,500).
(vii) Thirty per cent if not in excess of one thousand seven hundred fifty dollars ($1,750).
(viii) Twenty per cent if not in excess of two thousand dollars ($2,000).
(ix) Ten per cent if not in excess of two thousand two hundred fifty dollars ($2,250).
(3) If an individual has a taxable year of less than twelve months, the poverty income thereof shall be annualized in such manner as the department may prescribe.
((d) amended Dec. 23, 2003, P.L.250, No.46)
(304 amended Dec. 13, 1991, P.L.373, No.40) Compiler's Note: Section 33(5) of Act 46 of 2003, which amended subsection (d), provided that the amendment shall apply to taxable years beginning after December 31, 2003. Compiler's Note: Section 26(4)(ii) of Act 23 of 2001, which amended subsection (d)(1), provided that the amendment shall apply to taxable years beginning after December 31, 2000. Compiler's Note: Section 19(3)(i) of Act 23 of 2000, which amended subsection (d)(1), provided that the amendment shall apply to taxable years beginning after December 31, 1999. Compiler's Note: Section 32(5) of Act 4 of 1999, which amended subsection (d)(1), provided that the amendment shall apply to taxable years beginning after December 31, 1998.