WeVote
Log In

Bill

Bill

HB 2373

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 and for establishment of revenue-neutral reconciliation; and providing for reporting and for transfers.

2025-2026 Regular Session Introduced by Aaron Bernstine and 15 co-sponsors

HB 2373 rewrites Pennsylvania’s gross receipts tax with a revenue-neutral framework, adds reporting requirements, and sets transfer rules to back the changes.

Referred to Finance
0
WeVote Research Nonpartisan
Bill Summary · HB 2373

Overview

House Bill 2373 (2025-2026 Session, Pennsylvania) amends the Tax Reform Code of 1971, specifically modifying the gross receipts tax. The bill also addresses revenue-neutral reconciliation, reporting requirements, and transfers. It is sponsored by Rep. Eric Davanzo and a broad group of co-sponsors. As of the latest action, it has been referred to the House Finance Committee (April 9, 2026).

Main purpose and intent

  • To modify how the gross receipts tax is imposed under the Tax Reform Code of 1971.
  • To provide for a revenue-neutral reconciliation mechanism, i.e., any changes to the tax framework are intended to be revenue-neutral (no net increase or decrease in overall state revenue, subject to how the reconciliation is structured).
  • To establish reporting requirements and to authorize transfers related to the tax modifications.

Key provisions and changes (as described)

  • Amends the act governing the gross receipts tax within the Tax Reform Code of 1971.
  • Adds or clarifies provisions for:
    • The imposition of the gross receipts tax (i.e., how the tax is calculated, who pays, and under what circumstances).
    • Revenue-neutral reconciliation (process or formulas to ensure state revenue remains balanced after changes, potentially including adjustments or offsets elsewhere).
    • Reporting requirements (likely regarding observability of tax revenue effects, compliance, and fiscal reporting by affected entities or the Department of Revenue).
    • Transfers (mechanisms for moving funds between accounts or programs to support the revenue-neutral framework or related administrative needs).
  • The exact numerical details (rates, brackets, exemptions, or offsets) are not provided in the available summary. The bill text would specify any dollar amounts, percentages, or thresholds.

Who would be affected

  • Taxpayers subject to the Pennsylvania gross receipts tax (likely businesses and entities with gross receipts meeting certain criteria).
  • The Pennsylvania Department of Revenue and state fiscal offices responsible for administering the tax, reporting, and transfers.
  • Potentially sectors or industries sensitive to gross receipts tax changes, depending on exemptions or adjustments included in the final text.

Procedural and timeline aspects

  • Introduced and assigned to the Finance Committee (referred to Finance on April 9, 2026).
  • No floor votes or final passage information available in the provided material.
  • As a Finance-referred bill, it will proceed through committee consideration, potential amendments, and then floor action in the House; if passed, it would move to the Senate for consideration.
  • Because the bill emphasizes revenue-neutral reconciliation, there may be accompanying fiscal notes or impact analyses during committee review to verify neutrality assumptions.

Notable context

  • The sponsor list includes Rep. Davanzo and a diverse group of bipartisan co-sponsors, indicating potential broad interest in adjusting the gross receipts tax framework.
  • The memo title references “Tax Holidays for Families to Reduce Electric and Cell Phone Bills,” suggesting that the bill’s framing or related discussions may be connected to cost-of-living considerations, though the specific provisions in HB 2373 focus on tax structure, reconciliation, and reporting.

Summary in plain terms

HB 2373 seeks to revise how Pennsylvania collects the gross receipts tax, with a built-in mechanism to keep the overall state revenue neutral after the changes. It also adds requirements for reporting on the tax’s effects and establishes transfer provisions to support the revised framework. The bill is currently in the House Finance Committee as of April 2026. Final details, including exact tax rate changes, exemptions, and transfer rules, will be found in the full bill text and any fiscal notes produced during committee review.

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

Sign in to ask a question.