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HB 1409

An Act repealing the act of June 5, 1937 (P.L.1656, No.344), known as the Store and Theatre Tax Act.

2025-2026 Regular Session Introduced by Marc Anderson and 9 co-sponsors

Pennsylvania bill repeals 1937 Store and Theatre Tax without specifying replacement revenue, potentially creating significant budget shortfall for state government.

Referred to Finance
0
WeVote Research Nonpartisan
Bill Summary · HB 1409

Legislative bill overview

HB 1409 proposes to repeal Pennsylvania's Store and Theatre Tax Act of 1937, which has imposed a sales tax on retail purchases and theatre admissions for nearly 90 years. The bill would eliminate this specific tax mechanism, though it does not address how revenue currently generated by this tax would be replaced or how existing appropriations dependent on it would be funded.

Why is this important

The Store and Theatre Tax has been a stable revenue source for Pennsylvania state government for decades. Repealing it without replacement funding could create a significant budget shortfall, affecting state services unless alternative revenue sources are identified. This represents a fundamental question about tax policy priorities and government funding mechanisms in Pennsylvania.

Potential points of contention

  • Revenue impact: The bill does not specify replacement revenue sources, raising concerns about funding existing state programs and services currently supported by this tax
  • Retroactive effects: Eliminating a 90-year-old tax creates uncertainty for budget planning and could affect bond obligations or long-term spending commitments tied to this revenue stream
  • Distributional equity: Repealing a broad-based consumption tax may have different impacts on different income groups and regions of the state depending on what replaces it (if anything)

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

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