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SB 1199

An Act amending the act of March 4, 1971 (P.L.6, No.2), known as the Tax Reform Code of 1971, in gross receipts tax, further providing for imposition of tax.

2025-2026 Regular Session Introduced by Amanda Cappelletti and 7 co-sponsors

SB 1199 would tax digital advertising revenue under Pennsylvania’s gross receipts tax, affecting digital ad platforms, publishers, and related businesses.

Referred to Finance
0
WeVote Research Nonpartisan
Bill Summary · SB 1199

Overview

  • Bill: SB 1199
  • Session: 2025-2026 (Pennsylvania)
  • Prime Sponsor: Senator Lindsey Williams
  • Co-Sponsors: Katie Muth, Nikil Saval, Timothy Kearney, Christine Tartaglione, Elder Vogel, Amanda Cappelletti, Jay Costa
  • Committee/Status: Referred to the Senate Finance Committee on February 27, 2026
  • Short Title: An Act amending the act of March 4, 1971 (P.L.6, No.2), known as the Tax Reform Code of 1971, in gross receipts tax, further providing for imposition of tax
  • Memo Topic: Digital Advertising Tax

Purpose and Intent

SB 1199 seeks to modify Pennsylvania’s gross receipts tax to address the imposition of a digital advertising tax. The bill is framed as amending the Tax Reform Code of 1971 specifically in the area of gross receipts taxation, with a focus on digital advertising activities. The stated intent appears to be to establish or modify a tax mechanism targeting digital advertising, aligning with analogous efforts in other jurisdictions to tax online advertising revenue.

Key Provisions (as provided in summary materials)

  • Amends the Tax Reform Code of 1971, specifically the gross receipts tax provisions.
  • Provides for the imposition of a tax related to digital advertising activities (often described in legislative context as a “digital advertising tax”).
  • Details of how the tax is calculated, who is liable, the turnover thresholds, rate, exemptions, and administrative rules are not included in the provided summary. The exact language would be in the bill text and accompanying fiscal notes.

Who Would Be Affected

  • Businesses engaged in digital advertising, including entities that sell, host, or distribute digital advertising services that generate gross receipts from digital ads.
  • Potentially affected sectors:
    • Digital advertising platforms
    • Online publishers and media companies
    • Tech firms with digital ad revenue
    • Any intermediary or service provider involved in selling digital ad inventory
  • Consumers may indirectly be affected through price changes if businesses pass taxes through to customers.

Procedural and Timeline Aspects

  • Legislative Action: Referred to the Senate Finance Committee on February 27, 2026.
  • Next Steps: The committee will review the bill, potentially hold hearings, and may propose amendments before sending it to the full Senate. If advanced, it would move to the House for consideration and potential enactment.
  • Since no votes or committee meeting details are provided, no timeline for passage is available.

Observations and Considerations

  • The bill’s focal point is the gross receipts tax treatment of digital advertising activities, signaling a policy shift toward taxing digital ad revenue.
  • As with similar bills, key questions will include:
    • Tax rate and calculation methodology
    • Nexus rules and what constitutes taxable receipts
    • Exemptions (e.g., certain digital ads, nonprofit entities, small businesses)
    • Administrative compliance, collection responsibilities, and enforcement
    • Impact on small advertisers and the digital advertising ecosystem
  • Fiscal impact, implementation timeline, and potential legal challenges or interstate implications would be clarified in fiscal notes and legislative analyses.

Summary

SB 1199 proposes amendments to Pennsylvania’s Tax Reform Code to impose a tax on digital advertising revenue through the gross receipts framework. While the bill’s exact rate, exemptions, and administration are not detailed in the available materials, the proposal reflects an intent to tax digital advertising activities and would affect businesses involved in online ad sales and distribution. The bill is currently in the Senate Finance Committee as of February 2026.

Compiled from official sources — confirm details with the bill’s official record.

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