HB 1596 — 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.    1908

                     THE GENERAL ASSEMBLY OF PENNSYLVANIA



                         HOUSE BILL
                         No. 1596
                                               Session of
                                                 2025

     INTRODUCED BY FLOOD, FREEMAN, BERNSTINE, BURGOS, MAKO, NEILSON,
        OLSOMMER AND D. WILLIAMS, JUNE 11, 2025

     REFERRED TO COMMITTEE ON FINANCE, JUNE 11, 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(58) of the act of March 4, 1971
15   (P.L.6, No.2), known as the Tax Reform Code of 1971, is amended
16   and the section is amended by 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      (58)    The sale at retail or use of a personal computer, a
21   tablet, a personal digital assistant, a peripheral device or an
22   Internet access device, or a service contract or single-user
 1   licensed software purchased in conjunction with a personal
 2   computer, tablet, personal digital assistant, peripheral device
 3   or Internet access device, with a sales price of not more than
 4   one thousand five hundred dollars ($1,500), during the exclusion
 5   period by an individual purchaser for nonbusiness use. The
 6   exclusion does not include a sale at retail or use of, leasing,
 7   rental or repair of a personal computer, tablet, personal
 8   digital assistant, peripheral device or Internet access device;
 9   mainframe computers; network servers; local area network hubs;
10   routers and network cabling; network operating systems;
11   multiple-user licensed software; minicomputers; [hand-held
12   computers; personal digital assistants without Internet access;]
13   hardware word processors; graphical calculators; video game
14   consoles; telephones; digital cameras; pagers; compact discs
15   encoded with music or movies; and digital versatile discs
16   encoded with music or movies. For purposes of this clause, the
17   phrase "exclusion period" means the period of time from [August
18   5, 2001, to and including August 12, 2001, and from February 17,
19   2002, to and including February 24, 2002.] the first Saturday in
20   August to and including the third Saturday in August. For
21   purposes of this clause, "purchaser" means an individual who
22   places an order and pays the purchase price by cash or credit
23   during the exclusion period even if delivery takes place after
24   the exclusion period.
25      * * *
26      (77)     The sale at retail or use of school supplies during the
27   exclusion period for nonbusiness purposes. For the purposes of
28   this clause:
29      (i)    The following terms or phrases shall have the following
30   meanings:

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 1      "Art supplies" shall mean clay and glazes, paints,
 2   paintbrushes, sketch and drawing pads and watercolors.
 3      "Exclusion period" shall mean the first Saturday in August to
 4   and including the third Saturday in August.
 5      "Instructional materials" shall mean reference books,
 6   reference maps and globes, textbooks and workbooks.
 7      "School supplies" shall mean items such as book bags, pens,
 8   pencils, pencil sharpeners, markers, highlighters, erasers,
 9   crayons, blackboard chalk, notebooks, binders, folders, paper,
10   index cards, glue, tape, rulers, scissors, staplers, staples,
11   paper clips, printer ink, calculators, compasses, protractors,
12   lunch boxes, school supply boxes, personal organizers, art
13   supplies, clipboards, dry erase markers, sticky notes, bulletin
14   board paper, educational posters and games and instructional
15   materials with a sales price of fifty dollars ($50) or less per
16   item.
17      (ii)   The department may promulgate regulations to include
18   other similar items in the definitions of "art supplies,"
19   "instructional materials" and "school supplies" under this
20   clause.
21      Section 2.   This act shall take effect immediately.




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