I

106TH CONGRESS

1ST SESSION H. R. 1011

To amend the Internal Revenue Code of 1986 to exclude from gross income

the value of certain real property tax reduction vouchers received by

senior citizens who provide volunteer services under a State program.

IN THE HOUSE OF REPRESENTATIVES

MARCH 4, 1999

Mr. NEAL of Massachusetts (for himself, Mr. MOAKLEY, Mr. DELAHUNT, Mr.

MEEHAN, Mr. MCGOVERN, Mr. TIERNEY, and Mr. OLVER) introduced

the following bill; which was referred to the Committee on Ways and

Means

A BILL

To amend the Internal Revenue Code of 1986 to exclude

from gross income the value of certain real property

tax reduction vouchers received by senior citizens who

provide volunteer services under a State program.

1 Be it enacted by the Senate and House of Representa2 tives of the United States of America in Congress assembled,
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1 SECTION 1. EXCLUSION FROM GROSS INCOME FOR CER2 TAIN REAL PROPERTY TAX REDUCTION

3 VOUCHERS RECEIVED BY SENIOR CITIZENS

4 WHO PROVIDE VOLUNTEER SERVICES UNDER

5 A STATE PROGRAM.

6 (a) IN GENERAL.—Part III of subchapter B of chap7 ter 1 of the Internal Revenue Code of 1986 (relating to

8 items specifically excluded from gross income) is amended

9 by redesignating section 139 as section 139A and by in10 serting after section 138 the following new section:

11 ‘‘SEC. 139. REAL PROPERTY TAX REDUCTION VOUCHERS

12 RECEIVED BY SENIOR CITIZENS WHO PRO13 VIDE VOLUNTEER SERVICES UNDER A STATE

14 PROGRAM.

15 ‘‘(a) EXCLUSION.—In the case of an individual who

16 has attained age 65, gross income shall not include the

17 value of any real property tax reduction voucher received

18 during the taxable year for services performed by such in19 dividual.

20 ‘‘(b) MAXIMUM EXCLUSION.—The amount excluded

21 from gross income under subsection (a) for the taxable

22 year by each individual receiving a real property tax reduc23 tion voucher shall not exceed $500.

24 ‘‘(c) REAL PROPERTY TAX REDUCTION VOUCHER.—

25 For purposes of this section, the term ‘real property tax

26 reduction voucher’ means any voucher—
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1 ‘‘(1) which is issued by a governmental unit as

2 part of a program under which individuals who have

3 attained age 65 perform volunteer services for the

4 benefit of such governmental unit in exchange for

5 such voucher, and

6 ‘‘(2) which may be used by such individuals

7 only toward satisfying their liability for real property

8 taxes imposed by such governmental unit.

9 ‘‘(d) DENIAL OF DOUBLE BENEFIT.—No deduction

10 shall be allowed under this chapter for any real property

11 tax paid using any real property tax reduction voucher to

12 the extent that the amount of such voucher is excluded

13 from gross income under this section.’’

14 (b) EXEMPTION FROM EMPLOYMENT TAXES.—

15 (1) SOCIAL SECURITY TAXES.—

16 (A) Paragraph (20) of section 3121(a) of

17 such Code is amended by striking ‘‘or 132’’ and

18 inserting ‘‘132, or 139’’.

19 (B) Paragraph (17) of section 209(a) of

20 the Social Security Act is amended by striking

21 ‘‘or 132’’ and inserting ‘‘132, or 139’’.

22 (2) UNEMPLOYMENT COMPENSATION TAX.—

23 Paragraph (16) of section 3306(b) of such Code is

24 amended by striking ‘‘or 132’’ and inserting ‘‘132,

25 or 139’’.
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1 (3) WAGE WITHHOLDING.—Paragraph (19) of

2 section 3401(a) of such Code is amended by striking

3 ‘‘or 132’’ and inserting ‘‘132, or 139’’.

4 (c) CLERICAL AMENDMENT.—The table of sections

5 for part III of subchapter B of chapter 1 of such Code

6 is amended by striking the last item and inserting the fol7 lowing new items:

‘‘Sec. 139. Real property tax reduction vouchers received by senior citizens who provide volunteer services under a

State program.

‘‘Sec. 139A. Cross references to other Acts.’’

8 (d) EFFECTIVE DATES.—

9 (1) IN GENERAL.—Except as provided in para10 graph (2), the amendments made by this section

11 shall apply to taxable years beginning after Decem12 ber 31, 1999.

13 (2) EMPLOYMENT TAXES.—The amendments

14 made by subsection (b) shall apply to remuneration

15 paid after December 31, 1999.

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