The State House, Jan. 29, sent a bill that would deduct back taxes from Pennsylvania Lottery winners to the State Senate reports State Rep. Jim Cox (R-129).
House Bill 1489 would require the Department of Revenue to conduct a background check on any individual who wins more than $2,500 as a result of playing the Pennsylvania Lottery. That background check would reveal whether or not the winner owes any back taxes. If so, the amount of those delinquent taxes would be deducted from lottery winnings. In addition, the bill also directs the Department of Revenue to request that the Department of Public Welfare (DPW) determine if the prizewinner is currently a recipient of public assistance benefits prior to making any lottery winnings payment. If the prizewinner is found to be receiving public assistance benefits, DPW must determine if the individual remains eligible for public assistance benefits.
Current state law only requires the Department of Revenue and the Department of Public Welfare to work together to garnish lottery winnings when back child support is owed. In the event someone owes both child support and taxes, the child support would be deducted first.