[Congressional Record Volume 144, Number 59 (Tuesday, May 12, 1998)]
[Extensions of Remarks]
[Page E833]
From the Congressional Record Online through the Government Publishing Office [www.gpo.gov]




   INTRODUCTION OF TAX LEGISLATION TO CLARIFY TAX TREATMENT OF REAL 
                    PROPERTY TAX REDUCTION VOUCHERS

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                          HON. RICHARD E. NEAL

                            of massachusetts

                    in the house of representatives

                         Tuesday, May 12, 1998

  Mr. NEAL of Massachusetts. Mr. Speaker, today I have introduced 
legislation along with several of my colleagues of the Massachusetts 
Delegation to correct the tax treatment of real property tax reduction 
vouchers received in exchange for volunteer work.
  The House of Representatives in the Commonwealth of Massachusetts has 
passed legislation that would exempt real property tax vouchers 
received in exchange for volunteer work from income for state tax 
purposes. Similar legislation is pending in the State Senate. Many 
towns in Massachusetts have implemented a program which allows senior 
citizens to volunteer in exchange for a voucher of $500 to be used 
towards their property taxes. Seniors can volunteer to work in 
libraries, recreational centers, parks, and senior centers in exchange 
for a voucher to be applied to their property tax.
  This program benefits both the community and the individuals 
volunteering. My legislation would allow vouchers received in exchange 
for volunteer work to not be included in gross income. The legislation 
also exempts these voucher from employment taxes. Senior citizens who 
are age 65 are eligible for this legislation. The effective date is for 
payments made after January 1, 1999.
  This legislation enhances an important program that is currently 
taking place in many towns in Massachusetts. I hope that we can address 
this issue this year and that there will be an appropriate legislative 
vehicle.

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