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HB 2493

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.

2025-2026 Regular Session Introduced by Valerie Gaydos and 10 co-sponsors

The bill would create or expand sales tax exclusions in Pennsylvania, reducing tax on certain goods or services.

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WeVote Research Nonpartisan
Bill Summary · HB 2493

Summary of HB 2493 (Session 2025-2026) – Pennsylvania

Purpose and intent

  • HB 2493 proposes amendments to the Pennsylvania Tax Reform Code of 1971, specifically within the sales and use tax provisions.
  • The bill is framed as enhancing or clarifying exclusions from the state sales and use tax, with the aim of adjusting what items or transactions are not subject to taxation.

Key provisions and changes (as described by the bill’s title and context)

  • The primary focus is on exclusions from tax under the sales and use tax system. While the exact statutory text isn’t provided here, the bill’s title indicates a modification or addition to exclusions, meaning certain goods, services, or transactions would be exempt from sales and use tax or would carry different exemption criteria.
  • The bill would amend the act of March 4, 1971 (P.L. 6, No. 2), known as the Tax Reform Code of 1971, in the sections dealing with exclusions from tax. This could involve:
    • Adding new exclusions (new items or categories).
    • Expanding existing exclusions (broader applicability).
    • Modifying definitions to affect what qualifies as an exempt sale or service.
    • Adjusting administrative provisions related to exemptions (e.g., documentation, eligibility, or enforcement).

Who would be affected

  • Consumers: Individuals purchasing items or services that would become partially or fully exempt under the new exclusions.
  • Businesses: Retailers and vendors would apply the exemptions at the point of sale, potentially affecting pricing, sales tax collection, and record-keeping.
  • State and local tax administration: If new exclusions impact revenue, enforcement, and auditing processes within the Pennsylvania Department of Revenue and associated local taxing authorities.

Procedural and timeline aspects

  • As a bill introduced in the 2025-2026 session, it would follow standard legislative steps in Pennsylvania:
    • Introduction and committee assignment for review (likely in the House Financial Institutions and Revenues Committee or equivalent).
    • Hearings, amendments, and votes in the Pennsylvania House of Representatives.
    • If passed, referral to the Senate and a similar committee process before potential floor votes.
    • Final passage and potential signature by the Governor (or veto and override process).
  • Specific effective dates, transition provisions, or phase-in schedules (e.g., applicability to sales beginning on a certain date) would be outlined in the bill’s text; those details are not provided here and would appear in the bill language.

Fiscal and policy impact (anticipated)

  • Revenue impact: Expanding or creating exclusions generally reduces state and local sales tax collections in the short term, depending on the scope and value of excluded transactions.
  • Economic impact: Exclusions can influence consumer behavior, purchasing patterns, and business pricing strategies. They may be targeted to particular sectors (e.g., essentials, energy, groceries, medical equipment, or durable goods) to achieve policy goals.
  • Administrative impact: Tax administrators may need to update guidance, forms, and systems to reflect new or revised exemptions.

Notable considerations for readers

  • The bill’s effectiveness depends on the precise language of the exclusions (categories, dollar thresholds, and eligibility criteria).
  • Watch for amendments that could broaden or narrow the exemptions, as well as any sunset provisions or repeals.
  • Stakeholders likely to weigh in include consumer groups, retail associations, tax policy analysts, and local government entities.

If you’d like, I can provide a more detailed analysis once the official bill text is available, including a line-by-line breakdown of the proposed exclusions and any related administrative provisions.

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

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