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Bill

HB 901

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 Lisa Borowski and 21 co-sponsors

Pennsylvania bill modifies sales tax exemptions, potentially reducing state revenue while changing which purchases consumers and businesses pay tax on.

Referred to Finance
0
WeVote Research Nonpartisan
Bill Summary · HB 901

Legislative bill overview

HB 901 amends Pennsylvania's Tax Reform Code of 1971 to modify which goods and services are excluded from sales and use tax. The bill specifically targets exclusions within the sales and use tax section, though the precise items being excluded are not detailed in the title alone. This represents a revision to what Pennsylvania residents and businesses can purchase tax-free.

Why is this important

Sales and use tax exclusions directly affect consumer costs and business operations across the state. Changes to what is tax-exempt can shift the tax burden between different types of purchases, income levels, and industries. Pennsylvania's tax structure influences prices on everyday items, affecting both household budgets and the state's revenue available for public services.

Potential points of contention

  • Revenue impact: Expanding exclusions reduces state tax revenue unless offset elsewhere, potentially affecting funding for education, infrastructure, and social services
  • Fairness across sectors: Some industries may benefit from new exclusions while others don't, creating competitive advantages and raising equity questions
  • Administrative complexity: New exclusions require retailers and tax collectors to track which items qualify, potentially increasing compliance costs and confusion

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

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