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.

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
 1   Amending the act of March 4, 1971 (P.L.6, No.2), entitled "An
 2      act relating to tax reform and State taxation by codifying
 3      and enumerating certain subjects of taxation and imposing
 4      taxes thereon; providing procedures for the payment,
 5      collection, administration and enforcement thereof; providing
 6      for tax credits in certain cases; conferring powers and
 7      imposing duties upon the Department of Revenue, certain
 8      employers, fiduciaries, individuals, persons, corporations
 9      and other entities; prescribing crimes, offenses and
10      penalties," in sales and use tax, further providing for
11      exclusions from tax.
12      The General Assembly of the Commonwealth of Pennsylvania
13   hereby enacts as follows:
14      Section 1.    Section 204 of the act of March 4, 1971 (P.L.6,
15   No.2), known as the Tax Reform Code of 1971, is amended by
16   adding a clause to read:
17      Section 204.    Exclusions from Tax.--The tax imposed by
18   section 202 shall not be imposed upon any of the following:
19      * * *
20      (77)    The sale at retail or use of excluded tangible personal
21   property during the exclusion period by a purchaser for
22   nonbusiness use. Before July 10 of each year, the department
 1   shall post on its publicly accessible Internet website a list of
 2   the excluded tangible personal property qualifying for the
 3   exclusion under this clause. For the purposes of this clause:
 4      (i)    "Excluded tangible personal property" means:
 5      (A)    clothing accessories, including, but not limited to,
 6   hats, scarves, hosiery and handbags;
 7      (B)    footwear, including footwear normally worn for formal,
 8   sport or athletic purposes;
 9      (C)    school supplies, including, but not limited to, pens,
10   pencils, paper, binders, notebooks, books, bookbags, lunchboxes
11   and calculators;
12      (D)    computers, printers and printer supplies and computer
13   software; and
14      (E)    bath wash cloths, blankets, bed spreads, bed linens,
15   sheet sets, comforter sets, bath towels, shower curtains, bath
16   rugs and mats, pillows and pillow cases.
17      (ii)    "Exclusion period" means the period beginning 12:01
18   a.m. on the first Friday in August and ending at twelve midnight
19   the following Sunday.
20      (iii)    "Purchaser" means an individual who places an order
21   and pays the purchase price by cash or credit during the
22   exclusion period even if delivery takes place after the
23   exclusion period.
24      Section 2.    This act shall take effect in 60 days.




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