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HB 2524

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 Shelby Labs and 8 co-sponsors

The bill alters Pennsylvania sales and use tax exclusions, redefining which goods and transactions are exempt.

Referred to Finance
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WeVote Research Nonpartisan
Bill Summary · HB 2524

Overview

HB 2524 (Session 2025-2026, Pennsylvania) would amend the Tax Reform Code of 1971, specifically relating to sales and use tax exclusions. The bill aims to adjust which goods or transactions are exempt from Pennsylvania sales and use tax. The sponsors include a number of co-sponsors: Jeff Olsommer, Shelby Labs, Brian Smith, Milou Mackenzie, Eric Weaknecht, Zach Mako, David Rowe, Michael Stender, and Kristin Marcell.

Purpose and Intent

  • To modify the exclusions from Pennsylvania sales and use tax as established in the Tax Reform Code of 1971.
  • The bill seeks to clarify, expand, or otherwise alter which items or transactions are not subject to tax, thereby influencing consumer pricing and tax revenue.

Key Provisions and Changes

Note: The summary below reflects typical areas such bills address. For precise text, refer to the official bill language.

  • It redefines or adds exclusions from sales and use tax.
  • Possible changes could include:
    • Expanding exemptions for certain categories of goods (e.g., basic necessities, certain durable goods, or specific services) or for particular buyers (e.g., non-profits, educational institutions, or government entities).
    • Narrowing or clarifying existing exemptions to reduce ambiguity or prevent abuse.
    • Altering the tax treatment of specific transactions (e.g., online or remote sales, wholesale purchases, or cross-border transactions) to ensure consistency with existing law.
  • The bill may specify conditions, limitations, or thresholds for exemptions (e.g., dollar caps, usage requirements, or reporting obligations for vendors).

Important: The exact exclusions, the list of items or services affected, and any phase-in or sunset provisions would be defined in the text of the bill. The summary above reflects common elements in tax exclusion amendments but should be verified against the bill’s language.

Who Would Be Affected

  • Consumers who purchase goods or services that fall under the newly added or altered exclusions.
  • Retailers, sellers, and marketplaces conducting taxable or previously exempt transactions.
  • Businesses involved in issuing tax-exemption certificates or managing tax collections.
  • Potentially state or local revenue authorities due to changes in tax liability and compliance requirements.

Procedural and Timeline Considerations

  • The bill would move through the Pennsylvania General Assembly’s standard process: committee consideration, potential amendments, floor debate, and votes in both chambers, followed by any necessary gubernatorial action.
  • If enacted, the effective date for the new exclusions (immediate vs. scheduled implementation) would be specified in the bill (e.g., effective date upon enactment or a future date; possible transitional provisions).
  • Any sunset clauses, periodic review, or administrative rules alignment with the Department of Revenue would be addressed in the bill.

Potential Impacts

  • Tax Revenue: Depending on which items are excluded, state and local sales tax revenues could increase or decrease.
  • Consumer Prices: Exclusions could lower out-of-pocket costs for affected purchases.
  • Compliance: Businesses may face updated exemption certificate requirements, record-keeping, and reporting requirements.
  • Economic Effects: Exclusions tied to specific sectors (e.g., groceries, clothing, utilities, or professional services) could influence consumer behavior and sectoral competitiveness.

For a precise understanding, review the bill’s text to identify the exact exclusions, any technical corrections, implementation dates, and any related fiscal notes or impact statements prepared by the sponsor or fiscal analysts.

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

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