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HB 2452

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 Aaron Bernstine and 12 co-sponsors

HB 2452 would modify Pennsylvania sales and use tax exclusions, expanding or narrowing exemptions on goods and services to affect what remains untaxed.

Referred to Finance
0
WeVote Research Nonpartisan
Bill Summary · HB 2452

Summary of HB 2452 (Session 2025-2026) – Pennsylvania Tax Reform Code of 1971 (Sales and Use Tax Exclusions)

Purpose and intent

  • House Bill 2452 proposes amendments to the Pennsylvania Tax Reform Code of 1971, specifically within the sales and use tax framework.
  • The measure aims to modify or add exclusions from sales and use tax, refining what goods and services are exempt from taxation.
  • The bill is sponsored by a bipartisan slate of representatives, signaling broad legislative interest in adjusting tax exclusions to influence consumer prices, economic activity, or targeted policy goals.

Key provisions and changes (high-level)

  • The bill operates within the “exclusions from tax” section of the Sales and Use Tax, meaning it would expand, narrow, or otherwise modify items or transactions that are not subject to Pennsylvania sales and use tax.
  • While the precise provision text is not provided here, typical changes in this domain include:
    • Adding new exemptions for specific categories (e.g., essential goods, certain services, or durable medical equipment).
    • Expanding exemptions for certain institutions (e.g., nonprofit entities, government functions, or educational materials).
    • Modifying definitions to clarify what qualifies as exempt use, sale, or service.
    • Adjusting administrative or compliance-related aspects tied to the exemptions (e.g., documentation requirements, verification processes, or effective dates).

Note: The exact list of exclusions and their scope (e.g., dollar thresholds, percentage-based exemptions, or one-time applicability) would be specified in the formal bill text. The summary below reflects typical areas impacted by “exclusions from tax” language.

Who/what would be affected

  • Taxable transactions under Pennsylvania’s sales and use tax regime would be impacted insofar as those transactions fall within the newly established or adjusted exemptions.
  • Taxpayers potentially affected include:
    • Consumers purchasing exempt goods or services.
    • Businesses making exempt sales or purchasing exempt materials for resale or internal use.
    • Specific sectors targeted by exemptions (e.g., groceries, medicines, energy, educational materials, construction, or professional services), depending on the final language.
  • Administrators and retailers would need to adjust their tax collection practices, record-keeping, and filing processes to reflect the revised exclusions.

Procedural and timeline aspects

  • As a proposed act, HB 2452 would go through the standard Pennsylvania legislative process:
    • Introduction and referral to committee (likely the Chamber’s Finance or Appropriations-related committee).
    • Committee hearings and amendments.
    • Floor consideration in the house, potential cross-over to the senate, and conference if needed.
    • Final passage and gubernatorial action (sign or veto) followed by any necessary regulatory guidance.
  • Effective date: The bill would specify when the new exclusions take effect (e.g., upon enactment, a datespecific implementation, or phased-in approach). If not stated in the summary, the text typically includes an effective date and any transitional provisions.

Practical implications and considerations

  • Fiscal impact: Exclusions reduce tax revenue from covered transactions, with the magnitude depending on the scope and breadth of the exclusions. The bill may include an estimate of revenue impact or sunset provisions.
  • Economic impact: Exclusions can influence consumer prices, shopping behavior, and business compliance costs. Targeted exemptions can support policy goals such as affordability for essential goods or support to particular industries.
  • Administrative impact: Retailers and state tax officials would adjust systems for tax collection, exemption validation, exemptions documentation, and auditing practices.

Note

  • For a precise understanding of which items/services are exempt and the exact thresholds, definitions, and effective dates, the full text of HB 2452 and any fiscal notes or committee reports should be consulted. This summary provides the framework and likely areas impacted based on the bill’s title and doctrinal placement within the Tax Reform Code’s exclusions from tax.

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

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