Pennsylvania HB 1437: An Act amending the act of March 4, 1971 (P.L.6, No.2), known as the Tax Reform Code of 1971, in sales and use tax, further providing for exclusions from tax.

Bill Text

PRINTER'S NO. 1676
THE GENERAL ASSEMBLY OF PENNSYLVANIA
HOUSE BILL
No. 1437
Session of
2025
INTRODUCED BY KUZMA, M. MACKENZIE, M. JONES, OLSOMMER, KAUFFMAN,
FREEMAN, GALLAGHER, FLICK AND ROWE, MAY 9, 2025
REFERRED TO COMMITTEE ON FINANCE, MAY 12, 2025
AN ACT
Amending the act of March 4, 1971 (P.L.6, No.2), entitled "An
act relating to tax reform and State taxation by codifying
and enumerating certain subjects of taxation and imposing
taxes thereon; providing procedures for the payment,
collection, administration and enforcement thereof; providing
for tax credits in certain cases; conferring powers and
imposing duties upon the Department of Revenue, certain
employers, fiduciaries, individuals, persons, corporations
and other entities; prescribing crimes, offenses and
penalties," in sales and use tax, further providing for
exclusions from tax.
The General Assembly of the Commonwealth of Pennsylvania
hereby enacts as follows:
Section 1. Section 204 of the act of March 4, 1971 (P.L.6,
No.2), known as the Tax Reform Code of 1971, is amended by
adding a clause to read:
Section 204. Exclusions from Tax.--The tax imposed by
section 202 shall not be imposed upon any of the following:
* * *
(77) The sale at retail or use of excluded tangible personal
property during the exclusion period by a purchaser for
nonbusiness use. Before July 10 of each year, the department
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shall post on its publicly accessible Internet website a list of
the excluded tangible personal property qualifying for the
exclusion under this clause. For the purposes of this clause:
(i) "Excluded tangible personal property" means:
(A) clothing accessories, including, but not limited to,
hats, scarves, hosiery and handbags;
(B) footwear, including footwear normally worn for formal,
sport or athletic purposes;
(C) school supplies, including, but not limited to, pens,
pencils, paper, binders, notebooks, books, bookbags, lunchboxes
and calculators;
(D) computers, printers and printer supplies and computer
software; and
(E) bath wash cloths, blankets, bed spreads, bed linens,
sheet sets, comforter sets, bath towels, shower curtains, bath
rugs and mats, pillows and pillow cases.
(ii) "Exclusion period" means the period beginning 12:01
a.m. on the first Friday in August and ending at twelve midnight
the following Sunday.
(iii) "Purchaser" means an individual who places an order
and pays the purchase price by cash or credit during the
exclusion period even if delivery takes place after the
exclusion period.
Section 2. This act shall take effect in 60 days.
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