House Bill
1489 would enable an instant background check on anyone winning $2,500 or more
on any of the Pennsylvania Lottery's games, including the multi-state games
Powerball and Mega Millions. If the check revealed the winners owed any back
taxes the full amount owing would be immediately deducted from their winnings.
At the
moment Pennsylvania Lottery winners are only taxed on their winnings. The
winner, the lottery, and the retailer who sold the winning ticket add their
details to a standard claim form and the lottery shares the details with the
IRS. Any winnings over $2,500 in a fiscal year are taxable. When the winnings exceed $5,000 the
Pennsylvania Department of Revenue deducts the relevant amount of federal
income tax, but there is no initial assessment of past tax issues.
If
introduced, the new bill would also permit the Department of Public Welfare to
check if winners are receiving any form of public assistance and make a quick
decision on whether their new circumstances make them ineligible for further
help.
Under
present law the Public Welfare and Revenue departments are only permitted to
check if lottery winners owe any child support, but if it is successfully
implemented the new bill will grant them additional powers, allowing them to
deduct any money owed (before back taxes).
Bill 1489
was passed by the House last week and will now be placed before the state
senate
