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HB 2451

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 Thomas Kutz and 10 co-sponsors

HB 2451 would change which items and transactions are exempt from Pennsylvania sales and use tax, altering the tax base.

Referred to Finance
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WeVote Research Nonpartisan
Bill Summary · HB 2451

Summary of HB 2451 (Session: 2025-2026) — Pennsylvania

Purpose

HB 2451 proposes amendments to the Pennsylvania Tax Reform Code of 1971 (Act of March 4, 1971, P.L. 6, No. 2) relating to sales and use tax. The bill is designed to modify exclusions from sales and use tax, potentially altering what goods and services are exempt from taxation in Pennsylvania.

Key Provisions (provisions are described based on the bill’s stated goal to amend exclusions; exact text not provided in the prompt)

  • Exclusion Adjustments: The bill would revise one or more exclusions within the sales and use tax code. This could involve creating new exclusions, expanding existing exclusions, narrowing current exemptions, or repealing certain exemptions. The precise scope (which items or transactions) would be defined in the enacted language.
  • Scope of Tax Base: By altering exclusions, the bill may broaden or reduce the tax base. Depending on the direction chosen, certain purchases could become taxable or tax-exempt.
  • Administrative Alignment: Changes could affect reporting, compliance, and administration for taxpayers, sellers, and the Pennsylvania Department of Revenue, including potential updates to forms, exemptions documentation, and guidance.

Note: Without the bill’s exact text, the above reflects typical outcomes of amendments to exclusions in a state sales tax code. The precise list of goods or services affected will be determined in the final enacted version.

Who Would Be Affected

  • Taxpayers and Consumers: Individuals and households purchasing goods or services subject to the sales and use tax, particularly those benefiting from existing exclusions or facing new taxation.
  • Businesses Registered for Sales Tax: Retailers and service providers collecting and remitting sales tax would need to adjust to any changes in what is taxable or exempt, including potential changes to point-of-sale systems and exemption handling.
  • State Revenue Department: The Pennsylvania Department of Revenue would implement the regulatory and administrative changes, update guidance, and monitor compliance.
  • Sponsoring and Co-Sponsors: The bill lists a broad set of sponsors, indicating bipartisan or multi-ideological support. The presence of co-sponsors can influence legislative priorities and advocacy around the bill.

Procedural and Timeline Aspects

  • Bill Type: An act amending the Tax Reform Code of 1971.
  • Update Path: If advanced, the bill would undergo committee consideration, potential amendments, floor debate, and votes in both legislative chambers, followed by signing or veto by the governor.
  • Effective Date: The bill will specify an effective date for any new exclusions or changes. This could be immediate upon enactment or delayed to a future date, with possible phase-in provisions for certain exclusions.
  • Transitional Provisions: There may be transition rules to facilitate compliance for taxpayers and administrators, such as grace periods or parallel applicability during a transition.

Notes for Readers

  • The summary above outlines the typical content and impact of a bill amending exclusions in the sales and use tax. For a complete understanding, the exact statutory text of HB 2451, including the specific exclusions affected and any new or repealed provisions, is essential.
  • If you need, I can incorporate the bill’s precise language and provide a line-by-line analysis of the amendments once the text is available.

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

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