An Act amending the act of March 4, 1971 (P.L.6, No.2), known as the Tax Reform Code of 1971, in gross receipts tax, further providing for imposition of tax; and providing for additional property tax rebate.

PRIOR PRINTER'S NOS. 2050, 3549 PRINTER'S NO. 3551
THE GENERAL ASSEMBLY OF PENNSYLVANIA
HOUSE BILL
No. 1678
Session of
2025
INTRODUCED BY FIEDLER, ABNEY, INGLIS, GIRAL, PIELLI, HILL-EVANS,
KHAN, WAXMAN, BRENNAN, DOUGHERTY, RIVERA, KRAJEWSKI, SANCHEZ,
HADDOCK, D. WILLIAMS, FLEMING, CIRESI, WEBSTER, CEPEDA-
FREYTIZ, GREEN, SHUSTERMAN, GUZMAN, HANBIDGE, HOWARD,
McNEILL, POWELL, MAYES, BRIGGS, SCOTT, GALLAGHER, RABB,
KENYATTA, PROBST, O'MARA, TAKAC, SMITH-WADE-EL, BOYD, MADSEN,
CARROLL, BOROWSKI, T. DAVIS, KAZEEM, PARKER, KINKEAD,
MARKOSEK, MAZZOCCO, HARKINS, GOUGHNOUR, STEELE, BURGOS,
HOHENSTEIN, SALISBURY, CONKLIN, MERSKI, DEASY, DAWKINS,
SAMUELSON, RUSNOCK, TIBURCIO AND CEPHAS, JUNE 30, 2025
AS REPORTED FROM COMMITTEE ON APPROPRIATIONS, HOUSE OF
REPRESENTATIVES, AS AMENDED, JUNE 9, 2026
AN ACT
Amending the act of March 4, 1971 (P.L.6, No.2), entitled "An
act relating to tax reform and State taxation by codifying
and enumerating certain subjects of taxation and imposing
taxes thereon; providing procedures for the payment,
collection, administration and enforcement thereof; providing
for tax credits in certain cases; conferring powers and
imposing duties upon the Department of Revenue, certain
employers, fiduciaries, individuals, persons, corporations
and other entities; prescribing crimes, offenses and
penalties," in gross receipts tax, further providing for
imposition of tax; and providing for additional property tax
rebate.
The General Assembly of the Commonwealth of Pennsylvania
hereby enacts as follows:
Section 1. Section 1101(a) of the act of March 4, 1971
(P.L.6, No.2), known as the Tax Reform Code of 1971, is amended
and the section is amended by adding a subsection to read:
Section 1101. Imposition of Tax.--(a) General Rule.--Every
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pipeline company, conduit company, steamboat company, canal
company, slack water navigation company, transportation company,
and every other company, association, joint-stock association,
or limited partnership, now or hereafter incorporated or
organized by or under any law of this Commonwealth, or now or
hereafter organized or incorporated by any other state or by the
United States or any foreign government, and doing business in
this Commonwealth, and every copartnership, person or persons
owing, operating or leasing to or from another corporation,
company, association, joint-stock association, limited
partnership, copartnership, person or persons, any pipeline,
conduit, steamboat, canal, slack water navigation, or other
device for the transportation of freight, passengers, baggage,
or oil, except motor vehicles and railroads, and every limited
partnership, association, joint-stock association, corporation
or company engaged in, or hereinafter engaged in, the
transportation of freight or oil within this State, and every
telephone company, telegraph company or provider of mobile
telecommunications services now or hereafter incorporated or
organized by or under any law of this Commonwealth, or now or
hereafter organized or incorporated by any other state or by the
United States or any foreign government and doing business in
this Commonwealth, and every limited partnership, association,
joint-stock association, copartnership, person or persons,
engaged in telephone or telegraph business or providing mobile
telecommunications services in this Commonwealth, and every
limited partnership, association, joint-stock association,
corporation or company providing digital advertising services in
this Commonwealth, shall pay to the State Treasurer, through the
Department of Revenue, a tax of forty-five mills with a surtax
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equal to five mills upon each dollar of the gross receipts of
the corporation, company or association, limited partnership,
joint-stock association, copartnership, person or persons
received from:
(1) passengers, baggage, oil and freight transported wholly
within this State;
(2) telegraph or telephone messages transmitted wholly
within this State and telegraph or telephone messages
transmitted in interstate commerce where such messages originate
or terminate in this State and the charges for such messages are
billed to a service address in this State, except gross receipts
derived from:
(i) the sales of access to the Internet, as set forth in
Article II, made to the ultimate consumer;
(ii) the sales for resale to persons, partnerships,
associations, corporations, or political subdivisions subject to
the tax imposed by this article upon gross receipts derived from
such resale of telecommunications services, including:
(A) telecommunications exchange access to interconnect with
a local exchange carrier's network;
(B) network elements on an unbundled basis; and
(C) sales of telecommunications services to interconnect
with providers of mobile telecommunications services; and
(iii) the sales of telephones, telephone handsets, modems,
tablets and related accessories, including cases, chargers,
holsters, clips, hands-free devices, screen protectors and
batteries; [and]
(3) mobile telecommunications services messages sourced to
this Commonwealth based on the place of primary use standard set
forth in the Mobile Telecommunications Sourcing Act (4 U.S.C. §
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117), except gross receipts derived from:
(i) the sales of access to the Internet, as set forth in
Article II, made to the ultimate consumer;
(ii) the sales for resale to persons, partnerships,
associations, corporations or political subdivisions subject to
the tax imposed by this article upon gross receipts derived from
such resale of mobile telecommunications services, including
sales of mobile telecommunications services to interconnect with
providers of telecommunications services; and
(iii) the sales of telephones, telephone handsets, modems,
tablets and related accessories, including cases, chargers,
holsters, clips, hands-free devices, screen protectors and
batteries[.]; and
(4) digital advertising services displayed to a user on a
digital interface wholly within this Commonwealth, including
banner advertising, search engine advertising, interstitial
advertising and comparable advertising services that utilize the
personal information of the users to whom the advertisements are
served. As used in this clause, the following words and phrases
shall have the meanings given to them in this clause:
"D igital advertising services." The provision of
advertisements displayed on a digital interface.
"Digital interface." Any software, including an Internet
website, part of an Internet website or application, accessible
to a user.
"User." An individual or other person accessing a digital
interface via a device.
* * *
(g.1) Exemption for Broadcast and News Media Entities.--The
tax imposed under this section on gross receipts derived from
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digital advertising services shall not however be imposed on
gross receipts from advertising services displayed on a digital
interface owned or operated by a broadcast entity or news media
entity. As used in this subsection, the following words and
phrases shall have the meanings given to them in this
subsection:
"B roadcast entity." An entity primarily engaged in operating
a broadcast television or radio station.
"Digital advertising services." As defined in subsection (a)
(4).
"Digital interface." As defined in subsection (a)(4).
"News media entity." An entity primarily engaged in
newsgathering, reporting or publishing articles or commentary on
news, current events, culture or other matters of public
interest.
* * *
Section 2. The act is amended by adding an article to read:
ARTICLE XXIX-J
ADDITIONAL PROPERTY TAX REBATE
Section 2901-J. Definitions.
"Account." The restricted account established under section
2902-J.
"Claimant." An individual who files an application for the
rebate authorized under section 2903-J who has filed a claim for
property tax and:
(1) is an eligible individual; or
(2) lives in the same household as an eligible
individual.
"Department." The Department of Revenue of the Commonwealth.
"Eligible individual." An individual who resides in a
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homestead and is at least 65 years of age.
"Homestead." A dwelling and so much of the land surrounding
it, as is reasonably necessary for the use of the dwelling as a
home, occupied by a claimant. The term includes:
(1) Premises occupied by reason of ownership or lease in
a cooperative housing corporation.
(2) Mobile homes which are assessed as realty for local
property tax purposes and the land, if owned or rented by the
claimant, upon which the mobile home is situated, and other
similar living accommodations.
(3) A part of a multidwelling or multipurpose building
and a part of the land upon which the dwelling or building is
built.
(4) Premises occupied by reason of the claimant's
ownership of a dwelling located on land owned by a nonprofit
incorporated association, of which the claimant is a member,
if the claimant is required to pay a pro rata share of the
property taxes levied against the association's land.
(5) Premises occupied by a claimant if the claimant is
required by law to pay a property tax by reason of the
claimant's ownership, including a possessory interest, in the
dwelling, the land or both. An owner includes a person in
possession under a contract of sale, deed of trust, life
estate, joint tenancy or tenancy in common or by reason of
statutes of descent and distribution.
"Property Tax Relief Fund." The Property Tax Relief Fund
established under 4 Pa.C.S. § 1409 (relating to property tax
relief fund).
"Real property taxes." All taxes on a homestead, exclusive
of municipal assessments, delinquent charges and interest, due
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and payable during a calendar year.
"Rebate." The rebate authorized under section 2903-J.
Section 2902-J. Account established.
There shall be established within the Property Tax Relief
Fund a restricted account for the purpose of paying the rebates
under section 2903-J. All of the money collected under section
1101(a)(4) shall be deposited into the account.
Section 2903-J. Additional property tax rebate.
(a) Eligibility.--In addition to the rebate authorized under
Chapter 13 of the act of June 27, 2006 (1st Sp.Sess., P.L.1873,
No.1), known as the Taxpayer Relief Act, a claimant shall be
eligible to receive a rebate under this article.
(b) Amount of rebate.-- Each approved claimant shall receive
a rebate in an amount equal to the amount levied under Chapter 3
of the Taxpayer Relief Act in the current fiscal year less the
amount levied under Chapter 3 of the Taxpayer Relief Act in the
year the claimant turned 64 years of age, or if the claimant is
not at least 65 years of age, the amount levied under Chapter 3
of the Taxpayer Relief Act in the year the eligible individual
residing in the claimant's homestead turned 64 years of age.
(B) AMOUNT OF REBATE.--EACH APPROVED CLAIMANT SHALL RECEIVE
A REBATE IN AN AMOUNT EQUAL TO THE AMOUNT OF LOCAL SCHOOL REAL
ESTATE TAXES PAID BY THE APPROVED CLAIMANT IN THE CURRENT FISCAL
YEAR LESS THE AMOUNT PAID IN THE YEAR THE CLAIMANT TURNED 64
YEARS OF AGE, OR IF THE CLAIMANT IS NOT AT LEAST 65 YEARS OF
AGE, THE AMOUNT PAID IN THE YEAR THE ELIGIBLE INDIVIDUAL
RESIDING IN THE CLAIMANT'S HOMESTEAD TURNED 64 YEARS OF AGE.
Section 2904-J. Filing and payment of claim.
(a) Filing.--Except as otherwise provided in subsection (b),
a claim for a rebate under this article shall be filed with the
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department on or before the 30th day of June of the year next
succeeding the end of the calendar year in which real property
taxes was due and payable.
(b) Payments from account.--Except as provided under
subsection (c)(3), no reimbursement on a claim shall be made
from the account earlier than the day following the 30th day of
June provided under this section on which that claim may be
filed with the department.
(c) Eligibility of claimants.--
(1) Only one claimant from a homestead each year shall
be entitled to the rebate.
(2) If two or more people are able to meet the
qualifications for a claimant, the individuals may determine
who the claimant shall be.
(3) If the individuals are unable to agree, the
department shall determine to whom the rebate is to be paid.
Section 2905-J. Proof of claim.
(a) Contents.--Each claim shall be submitted on a form and
in a manner established by the department and shall include:
(1) The size and nature of the property claimed as a
homestead.
(2) The tax receipt or other proof that the real
property taxes on the homestead have been paid.
(3) Certification that the claimant or an individual in
the claimant's household is 65 years of age or older.
(b) Direct payment of taxes not required.--It shall not be
necessary that taxes were paid directly by the claimant if the
taxes have been paid when the claim is filed.
Section 2906-J. Incorrect claim.
Whenever on audit of a claim the department finds the claim
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to have been incorrectly determined, it shall redetermine the
correct amount of the claim and notify the claimant of the
reason for the redetermination and the amount of the corrected
claim.
Section 2907-J. Funds for payment of claims.
Approved claims shall be paid from the account.
Section 3. The amendment of section 1101(a) of the act shall
apply to the taxable years beginning after December 31, 2025.
Section 4. This act shall take effect immediately.
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