Treasurer Stacy Garrity Applauds Senate for State Tax Appeal Reform Pennsylvania Treasurer Stacy Garrity applauded the Senate for its bipartisan approval of Senate Bill 1051 yesterday, pro-taxpayer legislation sponsored by Sen. Scott Hutchinson (R-21) to streamline and improve the process of resolving tax disputes with the Pennsylvania Department of Revenue (DOR). SB 1051 will allow the Board of Finance and Revenue (BF&R) to accept late-filed applications in certain circumstances and to create a new independent, mediated settlement process for taxpayers as an alternative to the formal and lengthy court appeals process. “The current tax appeal process tends to be bureaucratic, cumbersome and inflexible,” Treasurer Garrity said. “It’s a huge burden on too many individuals and businesses with legitimate tax appeals – we need to improve this process. Sen. Hutchinson’s legislation will create an even playing field for Pennsylvania taxpayers, and it will help tax issues get resolved more quickly. I applaud the Senate for approving this commonsense, taxpayer-friendly legislation.” “My colleagues and I have found that, sometimes, the Department of Revenue can get a little overzealous when interpreting applicable tax law,” Sen. Hutchinson said. “Senate Bill 1051 gives taxpayers a little more time and some options when responding to assessments by the Department, while also benefiting our Commonwealth by resolving tax issues sooner and allowing tax liabilities to be collected more quickly. Plain and simple, SB 1051 is a taxpayer protection proposal that makes a complicated system clearer, simpler and taxpayer-friendly – it’s a win-win for all parties.” SB 1051 is supported by numerous organizations, including the Pennsylvania Chamber of Business and Industry, the NFIB, the Pennsylvania Institute of Certified Public Accountants (PICPA), and the Pennsylvania Society of Enrolled Agents. A companion bill, House Bill 1994, was introduced by Rep. Tim Briggs (D-29). Currently, taxpayers who disagree with a final decision made by DOR have a 60-day deadline to appeal the decision to BF&R. That often leads to cases being dismissed on a technicality rather than being decided on their merits. SB 1051 will allow BF&R to accept late-filed applications if good cause is shown by the taxpayer and neither party would be prejudiced. The bill also empowers BF&R to create an independent settlement process, which will allow more tax disputes to be resolved without a final Board decision – thus reducing litigation costs for taxpayers. Under current law, BF&R has no authority to direct a mediated settlement process. Treasury estimates that up to 500 cases annually could be resolved under this process. BF&R receives approximately 4,200 appeals annually. The Board must resolve each appeal within six months of its filing, absent an extension request; otherwise, the underlying DOR decision is upheld. Currently, only about 13 percent of eligible appeals are resolved through settlement prior to an appeal before the Commonwealth Court. BF&R is an independent administrative tax tribunal, administered by the State Treasurer, responsible for the second and final level of administrative appeal (with minor exceptions) before appealing to court. The Board consists of three members – two are appointed by the Governor and confirmed by the Pennsylvania Senate; the third is the State Treasurer or her designee and serves as Chair.
Luzerne County Residents Refunded Registration Fees Treasurer Stacy Garrity announced today that the Pennsylvania Treasury Department has sent refunds to approximately 31,000 Luzerne County residents who were owed money after the county eliminated its $5 annual vehicle registration fee. Luzerne County residents owed the refund paid for two-year vehicle registration renewals prior to the elimination of the $5 fee. “Working with Luzerne County, we were able to make these refunds without requiring the affected residents to take any action at all,” Treasurer Garrity said. “This wasn’t a traditional form of unclaimed property, but it was the most efficient way to get this money back where it belongs.” “Luzerne County was happy to work with our State Treasurer’s office to get this refund out to citizens in the most economical way,” said John Lombardo, Luzerne County Council Chair. “Thank you very much to Stacy Garrity and her staff for assisting our administration in this effort.” Most residents received a $5 refund, although some – based on when they paid their vehicle registration – received more, up to $20. In February, Luzerne County sent $221,200 of excess registration fees to the Pennsylvania Treasury Department’s Bureau of Unclaimed Property. County officials worked quickly with Treasury to submit a claim on behalf of all 31,253 residents who were owed a refund. Any resident of Luzerne County who has questions about this process can email the Pennsylvania Treasury Department’s Bureau of Unclaimed Property at tupmail@patreasury.gov or call 800-222-2046. Treasury has more than $4.5 billion in unclaimed property owed to more than one in ten Pennsylvanians, with the average value of a claim being $1,600. Unclaimed property can include things such as dormant bank accounts, insurance policies, and old valuables like contents of safe deposit boxes. State law requires businesses to report unclaimed property to Treasury after three years of dormancy. Anyone can search for unclaimed property, and see if they are owed anything, at patreasury.gov/unclaimed-property.
Treasurer Stacy Garrity Celebrates 529 Day with Awards for Families Treasurer Stacy Garrity celebrated 529 Day – May 29, or 5/29 – by encouraging families across Pennsylvania to save with the PA 529 College and Career Savings Program for a chance to win awards, including three top awards of $5,529 – enough to pay for a year’s tuition at a Pennsylvania community college. May 29, 2024, has also been designated as College and Career Savings Day in Pennsylvania by the General Assembly, with resolutions sponsored by Senator Scott Martin (R-13) and Representative John Schlegel (R-101). “I’m excited to celebrate 529 Day and very pleased that the General Assembly is supporting our efforts by proclaiming this as College and Career Savings Day,” Treasurer Garrity said. “Saving for education is an important step families can take to help make their child’s dreams come true, no matter what career path they take. Treasury is offering some fantastic promotional awards to encourage more families to take advantage of our PA 529 Guaranteed Savings Plan, which is a great savings tool. Saving now, means less to borrow when a child embarks on their technical career training, apprenticeship or college degree.” “We all share a common interest in supporting strong postsecondary educational opportunities and career preparation programs to help young people chart a course toward a brighter future here in Pennsylvania,” said Senator Martin. “I am proud to partner with Treasurer Garrity to make more Pennsylvanians aware of the benefits of PA 529 accounts and the key role they play in helping students achieve their dreams.” “The PA 529 College and Career Savings Program has helped many Pennsylvanian families save money for their child’s postsecondary education for more than three decades,” said Rep. Schlegel. “I encourage all families to consider this savings option.” Treasury’s 529 Day promotion has been running since May 1, and families have until May 31 to save to be eligible for awards with the PA 529 GSP. The PA 529 GSP allows families to save at today’s tuition rates to meet tomorrow’s tuition costs. Families can choose the tuition level they wish to save at – from community colleges up to Ivy League universities. Families who open a new PA 529 GSP and contribute at least $10 until May 31, will be eligible to win one of two statewide awards of $5,529, or one of six regional awards of $2,529. Last year, more than 1,000 families started saving during our 529 Day promotion. New for this year, families who had a PA 529 GSP account prior to May are eligible to win one statewide award of $5,529 if they make an additional contribution of at least $10 to their child’s account before the end of the month. The PA 529 program has been helping families save and pay for education for more than 30 years. Saving with PA 529 accounts comes with significant state and federal tax advantages. PA 529 accounts can be used for a wide variety of qualifying technical, collegiate, and apprenticeship expenses like tuition, fees, books, equipment, room and board, and more. Saving with PA 529 does not impact a student’s eligibility for Pennsylvania state financial aid. Families with young children, born January 1, 2019, or later, already have a $100 Keystone Scholars account to jumpstart their education savings. This automatic deposit is available to every baby born in Pennsylvania, and the program uses no taxpayer dollars. Families are encouraged to claim their Keystone Scholars accounts online at pa529.com/keystone and open their own companion PA 529 account to continue saving for their child’s future.
Treasurer Stacy Garrity Encourages Pennsylvanians to Apply for Property Tax/Rent Rebate Program Treasurer Stacy Garrity today encouraged eligible Pennsylvanians to apply for the Property Tax/Rent Rebate Program for this year’s rebate as soon as possible, noting that the Pennsylvania Treasury Department will begin sending rebates to approved applicants on July 1. “Many more Pennsylvanians are eligible for the Property Tax/Rent Rebate Program this year because the General Assembly and the Governor made the smart decision to expand the program,” Treasurer Garrity said. “I encourage everyone who’s eligible to apply as soon as possible. Treasury will start making payments on July 1, which is the earliest we’re able to under the law – and we’ll continue making payments on a rolling basis after that. This essential program makes a huge difference for so many, including older Pennsylvanians and those living with disabilities, and I’m committed to getting these payments out as quickly as possible once applicants are approved by the Department of Revenue.” The new law increased household income limits for rebates to $45,000 for homeowners and renters (up from $35,000 and $15,000, respectively). Claimants may exclude half of their Social Security income. The maximum standard rebate is now $1,000 (up from $650). Treasurer Garrity especially encouraged first-time applicants to apply as soon as possible because the Department of Revenue has indicated they will need more time to verify new applicant information as part of their efforts to combat program fraud. The Property Tax/Rent Rebate Program benefits Pennsylvanians age 65 and older, widows and widowers age 50 and older, and people with disabilities age 18 and older. Some homeowners may qualify for supplemental rebates. The deadline to apply for this year’s rebate is June 30, 2024. As part of last year’s program expansion, beginning in 2025, the income limits will be adjusted annually based on the Consumer Price Index for All Urban Consumers (CPI). That calculation will be done by the Secretary of Revenue. Since the program’s inception in 1971, more than $8 billion in rebates have been paid.
Treasurer Stacy Garrity Commends House for Passing Legislation to Strengthen PA 529 and PA ABLE Treasurer Stacy Garrity today commended members of the Pennsylvania House for unanimously approving House Bill 1745, sponsored by Rep. Paul Friel (D-26), which will provide a tax credit for employers who contribute to PA 529 College and Career Savings Program accounts owned by their employees. The bill includes an amendment sponsored by Rep. Joe Emrick (R-137) to extend the same benefit to employers who contribute to employees’ PA ABLE Savings Program accounts. PA ABLE is a savings program for Pennsylvanians with disabilities. “PA 529 and PA ABLE accounts are helping people all across Pennsylvania, and both have seen exceptional growth over the past three years,” Treasurer Garrity said. “I applaud the House for advancing this bill to strengthen both programs with tremendous bipartisan support. Creating tax credits will encourage employers to contribute to employees’ PA 529 and PA ABLE accounts, which will be a huge benefit for hardworking families as they save for the future.” “The PA 529 program has helped hundreds of thousands of Pennsylvania families save for their child’s or grandchild’s future education,” Rep. Friel said. “I’m pleased that the PA 529 tax credit bill passed the House unanimously. We’re coming together to improve college access and make education more affordable by reducing the financial burden on Pennsylvania’s students and their families.” “Addressing the skills gap and strengthening our workforce starts with access to education,” said Rep. Kristin Marcell (R-178), a strong supporter of the legislation. “By encouraging employers to invest in their employees’ futures, HB 1745 not only supports Pennsylvania families but also contributes to building a more skilled and educated workforce.” HB 1745 would establish a 25 percent tax credit on employer contributions of up to $500 per participating employee per year. It would apply to contributions made to any PA ABLE account and any 529 account owned by a Pennsylvania resident. Incorporating a tax credit for Pennsylvania employers who provide contributions to PA 529 accounts was recommended by the Tuition Account Program Advisory Board in the program’s most recent annual report. Seven other states – Arkansas, Colorado, Idaho, Illinois, Nebraska, Nevada and Wisconsin – provide a similar credit. HB 1745 now moves to the Senate for consideration. Treasurer Garrity thanked Rep. Friel, Rep. Marcell, Rep. Emrick, Rep. Peter Schweyer (D-134), and Rep. Jesse Topper (R-78) for their key roles in advancing the legislation in a bipartisan fashion. The PA 529 College and Career Savings Program helps families steadily and strategically save for future educational expenses like tuition, fees, books, equipment, room and board and more at qualifying technical, collegiate and apprenticeship programs. PA 529 plans also offer significant state and federal tax advantages and saving with PA 529 does not impact Pennsylvania state financial aid eligibility. There are two options to invest with PA 529: the PA 529 Guaranteed Savings Plan, which allows families to save at today’s tuition rates to meet tomorrow’s tuition costs, and the PA 529 Investment Plan, which allows families to choose from a variety of investment options and received a Gold Rating from Morningstar in 2023, making it one of the top two 529 plans in the nation. The PA 529 program has been helping families save and pay for education for more than 30 years. There are currently almost 300,000 PA 529 accounts with assets of nearly $7.5 billion. Visit pa529.com to learn more about the PA 529 College and Career Savings Program. PA ABLE (Achieving a Better Life Experience) accounts are a tax-free way for Pennsylvanians with disabilities, and their families, to save without affecting eligibility for important benefits. Treasurer Garrity recently announced the program’s fourth fee reduction in the past three years, resulting in annual savings of more than $80,000 for PA ABLE account owners. To learn more about program eligibility and how to start saving with PA ABLE, visit paable.gov.
Treasurer Stacy Garrity Announces New INVEST Manager Pennsylvania Treasurer Stacy Garrity announced today that Ryan Buxton has been promoted to INVEST Manager, a new position within Treasury’s Bureau of Cash Management. Buxton will develop and implement strategies to grow INVEST’s assets and increase program participation statewide. INVEST helps local government and nonprofit organizations meet their financial goals. “INVEST is a powerful program, and with Ryan taking this leadership role, I know more nonprofit organizations and local governments will benefit from it,” Treasurer Garrity said. “INVEST is tremendously flexible, and it’s a great tool to help organizations safely achieve growth without sacrificing liquidity. Ryan’s experience in community outreach in Treasury’s Bureau of Consumer Programs, and his many previous years working with INVEST, make him the perfect person for this important job.” “I want to thank Treasurer Garrity for her leadership and vision and getting INVEST into both rural and urban communities across Pennsylvania,” Buxton said. “I’m excited to continue that vision by moving the program forward by making it easier to enroll in INVEST and spreading the word about our investment products to both nonprofit organizations and government entities. Whether you’re a fire company or a municipal government, INVEST is a safe place to realize a great return on your investment.” Buxton has worked for Treasury since 1995, including 16 years with the INVEST Program. Prior to his new role as INVEST Manager, he worked as an Outreach Specialist with the Bureau of Consumer Programs, promoting the PA 529 College and Career Savings Program, Keystone Scholars, the PA ABLE Savings Program and unclaimed property. INVEST is a tool designed for local government agencies and nonprofit organizations such as townships, counties, school districts, volunteer fire companies, libraries and others. The program, similar in concept to a money market fund, offers two pools – the INVEST Daily Pool and the INVEST Community Pool. There are also periodic custom investment opportunities for longer-term needs. Treasury’s investment staff, which also oversees investments and custody of more than $150 billion in public funds, manages INVEST portfolios. Important features of INVEST include: No minimum balance requirement; Daily liquidity; Unlimited transactions; No transaction fees; and No minimum or maximum deposits. More than 260 entities currently use INVEST, and the program has assets totaling about $1.3 billion. INVEST has received the highest credit rating possible, AAAm, from Standard & Poor’s Global Ratings (S&P) for both pool offerings. Local government entities and nonprofit organizations can learn more about INVEST at patreasury.gov/invest or email investoperations@patreasury.gov.
Treasurer Stacy Garrity Celebrates One Million Withdrawals from PA 529 Accounts September is College Savings Month and Treasurer Stacy Garrity celebrated today by announcing that more than one million withdrawals have been made from PA 529 College and Career Savings Program accounts. Since the program was created more than 30 years ago, account holders have used more than $5.6 billion to help pay for education expenses. “The fact that families have made more than a million withdrawals from PA 529 accounts is a dramatic demonstration of the impact this incredible program is having for Pennsylvania families,” Garrity said. “PA 529 has been helping Pennsylvania families save for education since it was enacted as the Tuition Account Program in 1992. The career landscape continues to change, but the dependability and flexibility of PA 529 remains the same – helping families save and pay for education expenses no matter what type of training or education their child seeks.” PA 529 accounts are designed to help Pennsylvania families steadily and strategically save for a wide variety of qualifying educational expenses, including apprenticeships, technical schools, colleges and universities, and even some K-12 expenses. There are two PA 529 plans to choose from, the PA 529 Guaranteed Savings Plan (GSP) and the PA 529 Investment Plan (IP). There are currently more than 287,000 PA 529 accounts, more than at any time in the program’s history, including more than 110,000 PA 529 GSP accounts and more than 176,000 PA 529 IP accounts. Families have nearly $6.8 billion saved for future education expenses. The PA 529 GSP allows families to save at today’s tuition rates to meet tomorrow’s tuition costs. Account earnings are based on college tuition inflation rates. Families can choose the tuition credit rate they wish to save at from community colleges to Ivy League universities. The PA 529 IP offers a variety of investment options, including target enrollment portfolios that automatically reallocate assets as a child approaches postsecondary education enrollment. The PA 529 IP has received three consecutive Morningstar Silver ratings – establishing it as a best-in-class 529 plan nationwide. “Since becoming Treasurer, I’ve taken big steps to make sure the PA 529 program is as affordable and accessible for any Pennsylvanian who wants to save for education,” Garrity said. “We’ve reduced fees for the PA 529 IP several times – including twice this year! And we’ve waived PA 529 GSP fees for two consecutive years. In total, these changes are saving account owners more than $11 million.” Both PA 529 plans have significant state and federal tax advantages, including tax-free growth and no taxes owed on qualified withdrawals. PA 529 accounts are not subject to state inheritance tax and do not affect eligibility for state financial aid. The PA 529 College & Career Savings Program was created by Act 11 of 1992, when Senate Bill 2, sponsored by Senator Robert Jubelirer, was signed into law by Governor Robert P. Casey, Sr. The bill passed both chambers of the General Assembly unanimously. “Senator Jubelirer, his colleagues in the General Assembly and former Governor Casey all deserve a great deal of credit for their foresight,” Garrity said. “Their bipartisan work to help families save for education continues to pay off more than three decades later.” Keystone Scholars, a more recent legislative initiative, provides children born in 2019 and after, with an automatic $100 to start education savings. The $100 will grow through investments made by Treasury and be ready to use for education expenses when the child turns 18. Families are encouraged to open their own PA 529 account and link it to their child’s Keystone Scholars account to see their total savings. Keystone Scholars uses no taxpayer dollars. Pennsylvanians with PA 529 accounts linked to their child’s Keystone Scholars accounts have already saved more than $65 million for future education expenses. To learn more about saving with PA 529 or Keystone Scholars, visit pa529.com or call 800-440-4000.
Treasurer Stacy Garrity Praises Expansion of Property Tax/Rent Rebate Program, Reminds Pennsylvanians of Dec. 31 Deadline Treasurer Stacy Garrity today congratulated the General Assembly and Governor Shapiro for expanding Pennsylvania’s Property Tax/Rent Rebate Program and encouraged eligible residents to apply now for the 2023 rebate. “Expanding the Property Tax/Rent Rebate Program will help some of the most vulnerable Pennsylvanians – especially seniors on fixed budgets – at a time when the effects of historically high inflation continue to wreck household budgets,” Garrity said. “This essential program has provided more than $7.3 billion in relief since it started in 1971. One of Treasury’s highest priorities is processing these payments quickly to get the funds into the hands of the people who need them. The General Assembly and the Governor deserve a lot of credit for expanding it to help even more of our citizens.” As of August 4, Treasury has processed 311,298 payments totaling $145.4 million for this year’s Property Tax/Rent Rebate program. The deadline to apply for a rebate this year has been extended to December 31, 2023. “I encourage everyone who is eligible for this year’s rebates to apply as soon as possible,” Garrity said. “Treasury prioritizes getting these payments out the door and we will make payments on a rolling basis as applicants are approved by the Department of Revenue.” Starting in 2024, the maximum standard rebate will increase from $650 to $1,000. The household income limit for property tax rebates will increase to $45,000 (up from the current $35,000 limit). The limit for rent rebates will also increase to $45,000 (up from $15,000). Beginning in 2025, the new income limits will be adjusted annually based on the Consumer Price Index for All Urban Consumers (CPI). That calculation will be done by the Secretary of Revenue. The Property Tax/Rent Rebate Program benefits Pennsylvanians age 65 and older, widows and widowers age 50 and older, and people with disabilities age 18 and older. Some homeowners may qualify for supplemental rebates. For more information about eligibility, Pennsylvanians can contact their state legislators, visit the Department of Revenue’s website, revenue.pa.gov, or call 888-222-9190. Applications can be filed online through the Department of Revenue’s myPATH system. Anyone who has already applied for this year’s rebate can check the status by using the Where’s My Rebate? online tool.
Treasurer Stacy Garrity Waives Fees for PA 529 GSP Accounts, Reduces Fees for PA 529 IP Accounts Treasurer Stacy Garrity today announced that asset-based fees will be waived for PA 529 Guaranteed Savings Plan (GSP) account owners for the second consecutive fiscal year. Fee waivers will be funded by PA 529 GSP surplus earnings. PA 529 Investment Plan (IP) account owners will also see a second fee reduction this year, as state fees will decrease by 0.5 basis points (0.005 percent) effective September 1, 2023. Last month Treasurer Garrity announced a reduction in operational support fees by 1.25 basis points (0.0125 percent). Combined, the IP fee reductions will result in a savings of more than $800,000 for account holders throughout this fiscal year. “I’m cutting these fees because the great PA 529 College and Career Savings Program should be as affordable as possible for every family in our state,” Garrity said. “Lower fees help Pennsylvanians save more for their children’s education. PA 529 accounts are a tremendous tool to help the next generation afford the training and education they’ll need to enter the workforce, whether they attend one of our great technical schools, community colleges, or four-year universities – or if they enter an apprenticeship.” There are more than 287,000 PA 529 accounts, including more than 111,000 PA 529 GSP accounts and more than 175,000 PA 529 IP accounts. Families have nearly $7 billion saved for future education expenses. PA 529 accounts are designed to help Pennsylvania families steadily and strategically save for a wide variety of qualifying technical, collegiate, apprenticeship and K-12 educational expenses. Both PA 529 plans have significant state and federal tax advantages, and assets saved in PA 529 accounts do not affect eligibility for state financial aid. The PA 529 GSP allows families to save at today’s tuition rates to meet tomorrow’s tuition costs. Account earnings are based on college tuition inflation rates, and families can choose the tuition credit rate they wish to save at from community colleges to Ivy League universities. The Morningstar Silver Rated PA 529 IP offers a variety of investment options, and account earnings are directly tied to financial market performance. To learn more about how to start saving with PA 529, visit pa529.com or call 800-440-4000.
Treasurer Garrity Leads National Effort to Overturn Mortgage Fees Treasurer Stacy Garrity today announced that she is leading a national effort to eliminate new mortgage fees being imposed on home buyers with good credit and high down payments. The new fees, implemented via policy by the Federal Housing Finance Agency, go into effect today. “This new policy makes it more expensive for people with good credit to buy houses – and that’s absurd,” Treasurer Garrity said. “Americans who have built a good credit score and saved enough to make a strong down payment should not be penalized and forced to pay more on their mortgage every single month. I’m proud that so many of my colleagues from across the country – representing a majority of states – have united to urge the immediate elimination of this policy.” A total of 33 fiscal officers from 26 other states joined Treasurer Garrity in a letter to President Joe Biden and Federal Housing Finance Agency Director Sandra L. Thompson. “For decades, Americans have been told that they will be rewarded for saving their money and building a good credit score,” the letter states. “This policy turns that time-tested principle upside down.” In the letter, Treasurer Garrity and her fellow fiscal officers point out that although FHFA claims the fees will be used to make mortgages more affordable for people with lower credit scores, there are far better ways to achieve that goal: “We all want to increase home ownership across our great country – that’s a central component of the American Dream. … But the right way to solve that problem is not to use the power of the federal government to penalize hardworking, middle-class American families by confiscating their money and using it as a handout. The right way is to implement policies which will reduce inflation, cut energy costs and bring lower interest rates.” The letter concludes with a simple, direct request to President Biden and Director Thompson: “We urge you to take immediate action to end this unconscionable policy.”
