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Bill

HB 959

An Act amending the act of March 4, 1971 (P.L.6, No.2), known as the Tax Reform Code of 1971, in personal income tax, further providing for refund or credit of overpayment and providing for interest on refund or credit of overpayments; in general provisions, providing for interest on taxes due the Commonwealth and for interest on overpayments; and making repeals.

2025-2026 Regular Session Introduced by Wendy Fink and 7 co-sponsors

HB 959 restructures Pennsylvania income tax interest calculations for both overpayments and underpayments, affecting refund timing and tax liability costs for individuals and state revenue.

Referred to Finance
0
WeVote Research Nonpartisan
Bill Summary · HB 959

Legislative bill overview

HB 959 amends Pennsylvania's Tax Reform Code of 1971 to modify how interest is calculated and applied to both tax overpayments (refunds owed to taxpayers) and underpayments (taxes owed to the state). The bill standardizes interest provisions across personal income tax while repealing certain existing provisions related to interest calculations.

Why is this important

Interest rates on tax refunds and payments directly affect both individual taxpayers and state revenue. Changes to these provisions can alter how quickly people receive refunds, how much they owe if they underpay taxes, and the state's cash flow position. This impacts household finances for affected taxpayers and the state budget's predictability.

Potential points of contention

  • Interest rate amounts: The bill's specific interest rates are not detailed in this summary; stakeholders may dispute whether rates are fair to taxpayers versus beneficial to state finances
  • Retroactivity concerns: Depending on implementation details, changes could apply to pending refunds or outstanding tax liabilities, creating transition issues
  • Complexity vs. simplification: Consolidating interest provisions could either clarify the tax code or inadvertently create new compliance burdens depending on how provisions interact

Compiled from official sources — confirm details with the bill’s official record.

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