Kortz: Measure to exempt CARES payments from state, local taxes passes House

HARRISBURG, May 4 – A bill to prevent recipients of federal pandemic cash payments from being required to pay state and local taxes on those funds passed unanimously in the PA House, state Rep. Bill Kortz, D-Allegheny, announced today.

Kortz said the bill, authored by state Rep. Brandon Markosek, also D-Allegheny, would ensure that those who received the funds as part of the CARES Act that passed in Congress last month and was signed into law would not have to pay state or local taxes on them. The funds are already exempt from federal taxation, and it doesn’t make sense to require state and local taxes to be paid, Kortz added.

“Our residents and businesses are hurting, and we need to do everything possible to help them through this time and beyond,” Kortz said. “That includes making sure they don’t have to pay taxes on the very funds that are helping them keep the lights on, feed their families, pay for needed medicine and stay afloat. It’s the right thing to do and I fully support this legislation.”

The CARES Act included a provision to provided cash payments to individuals making less than $99,000 per year and couples making less than $199,000 annually.

The bill, which has companion legislation in the state Senate, now heads to the Senate for further consideration.