SB 695 — 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 time for filing returns.

PRINTER'S NO.   722

                     THE GENERAL ASSEMBLY OF PENNSYLVANIA



                        SENATE BILL
                        No. 695
                                               Session of
                                                 2025

     INTRODUCED BY PHILLIPS-HILL, ROTHMAN, PENNYCUICK, MASTRIANO,
        KEARNEY, ROBINSON, KEEFER AND STEFANO, APRIL 30, 2025

     REFERRED TO FINANCE, APRIL 30, 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 time
11      for filing returns.
12      The General Assembly of the Commonwealth of Pennsylvania
13   hereby enacts as follows:
14      Section 1.    Section 217(a) and (b) of the act of March 4,
15   1971 (P.L.6, No.2), known as the Tax Reform Code of 1971, are
16   amended to read:
17      Section 217.    Time for Filing Returns.--(a)   Quarterly and
18   Monthly Returns:
19      (1)   For the year in which this article becomes effective and
20   in each year thereafter until January 1, 2026, a return shall be
21   filed quarterly by every licensee on or before the twentieth day
22   of April, July, October and January for the three months ending
 1   the last day of March, June, September and December.
 2      (1.1)     For the year beginning after December 30, 2025, and in
 3   each year thereafter, a return shall be filed annually by every
 4   licensee whose actual tax liability for the fourth calendar
 5   quarter of the preceding year is less than or equal to one
 6   thousand two hundred dollars ($1,200).
 7      (2)     For the year in which this article becomes effective,
 8   and in each year thereafter until January 1, 2026, a return
 9   shall be filed monthly with respect to each month by every
10   licensee whose actual tax liability for the third calendar
11   quarter of the preceding year equals or exceeds six hundred
12   dollars ($600) and is less than twenty-five thousand dollars
13   ($25,000). Such returns shall be filed on or before the
14   twentieth day of the next succeeding month with respect to which
15   the return is made. Any licensee required to file monthly
16   returns hereunder shall be relieved from filing quarterly
17   returns.
18      (2.1)     For the year beginning after December 30, 2025, and in
19   each year thereafter, a return shall be filed quarterly by every
20   licensee whose actual tax liability for the fourth calendar
21   quarter of the preceding year exceeds one thousand two hundred
22   dollars ($1,200) and is less than twenty-five thousand dollars
23   ($25,000). Such returns shall be filed on or before the
24   twentieth day of the next succeeding month with respect to which
25   the return is made. Any licensee required to file monthly
26   returns hereunder shall be relieved from filing quarterly
27   returns.
28      (3)     With respect to every licensee whose actual tax
29   liability for the third calendar quarter of the preceding year
30   equals or exceeds twenty-five thousand dollars ($25,000) and is

20250SB0695PN0722                    - 2 -
 1   less than one hundred thousand dollars ($100,000), the licensee
 2   shall, on or before the twentieth day of each month, file a
 3   single return consisting of all of the following:
 4      (i)    Either of the following:
 5      (A)    An amount equal to fifty per centum of the licensee's
 6   actual tax liability for the same month in the preceding
 7   calendar year if the licensee was a monthly filer or, if the
 8   licensee was a quarterly [or], semi-annual or annual filer,
 9   fifty per centum of the licensee's average actual tax liability
10   for that tax period in the preceding calendar year. The average
11   actual tax liability shall be the actual tax liability for the
12   tax period divided by the number of months in that tax period.
13   For licensees that were not in business during the same month in
14   the preceding calendar year or were in business for only a
15   portion of that month, fifty per centum of the average actual
16   tax liability for each tax period the licensee has been in
17   business. If the licensee is filing a tax liability for the
18   first time with no preceding tax periods, the amount shall be
19   zero.
20      (B)    An amount equal to or greater than fifty per centum of
21   the licensee's actual tax liability for the same month.
22      (ii)    An amount equal to the taxes due for the preceding
23   month, less any amounts paid in the preceding month as required
24   by subclause (i).
25      (4)    With respect to each month by every licensee whose
26   actual tax liability for the third calendar quarter of the
27   preceding year equals or exceeds one hundred thousand dollars
28   ($100,000), the licensee shall, on or before the twentieth day
29   of each month, file a single return consisting of the amounts
30   under clause (3)(i)(A) and (ii).

20250SB0695PN0722                   - 3 -
 1      (5)   The amount due under clause (3)(i) or (4) shall be due
 2   the same day as the remainder of the preceding month's tax.
 3      (6)   The department shall determine whether the amounts
 4   reported under clause (3) or (4) shall be remitted as one
 5   combined payment or as two separate payments.
 6      (7)   The department may require the filing of the returns and
 7   the payments for these types of filers by electronic means
 8   approved by the department.
 9      (8)   Any licensee filing returns under clause (3) or (4)
10   shall be relieved of filing quarterly returns.
11      (9)   If a licensee required to remit payments under clause
12   (3) or (4) fails to make a timely payment or makes a payment
13   which is less than the required amount, the department may, in
14   addition to any applicable penalties, impose an additional
15   penalty equal to five per centum of the amount due under clause
16   (3) or (4) which was not timely paid. The penalty under this
17   clause shall be determined when the tax return is filed for the
18   tax period.
19      (b)   Annual Returns. For the calendar year 1971, and for each
20   year thereafter until January 1, 2026, no annual return shall be
21   filed, except as may be required by rules and regulations of the
22   department promulgated and published at least sixty days prior
23   to the end of the year with respect to which the returns are
24   made. Where such annual returns are required licensees shall not
25   be required to file such returns prior to the twentieth day of
26   the year succeeding the year with respect to which the returns
27   are made.
28      * * *
29      Section 2.   This act shall take effect immediately.



20250SB0695PN0722                  - 4 -