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Bill

HB 185

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 Missy Cerrato and 12 co-sponsors

Pennsylvania bill expands sales tax exemptions, reducing state revenue while lowering purchase costs for unspecified goods or services.

Referred to Finance
0
WeVote Research Nonpartisan
Bill Summary · HB 185

Legislative bill overview

HB 185 amends Pennsylvania's Tax Reform Code of 1971 to expand exclusions from sales and use tax. The bill modifies which goods or services are exempt from state sales tax, though the specific exclusions are not detailed in the bill reference provided. This represents a narrowing of the tax base by exempting additional items from taxation.

Why is this important

Sales tax exclusions directly reduce state revenue while lowering costs for consumers or businesses purchasing the exempted items. The fiscal impact depends entirely on which products or services are being exempted—this could affect general consumers, specific industries, or particular economic activities. Pennsylvania's budget and funding for public services depend on sales tax revenue, so any expansion of exemptions has budgetary consequences.

Potential points of contention

  • Revenue loss unclear: Without knowing which items are exempted, the cost to the state budget cannot be assessed or justified
  • Equity concerns: Tax exemptions may disproportionately benefit higher-income purchasers or specific industries, raising fairness questions about who bears the remaining tax burden
  • Precedent risk: Expanding exemptions can create pressure for additional exemptions in future legislative sessions, potentially eroding the overall tax base over time

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

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