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.

PRINTER'S NO. 3271
THE GENERAL ASSEMBLY OF PENNSYLVANIA
HOUSE BILL
No. 2457
Session of
2026
INTRODUCED BY PUGH, KUTZ, STENDER, GAYDOS, OLSOMMER, MARCELL,
SMITH, METZGAR, ROWE, HAMM AND WEAKNECHT, APRIL 24, 2026
REFERRED TO COMMITTEE ON FINANCE, APRIL 27, 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 sales and use tax, further providing for
exclusions from tax.
The General Assembly of the Commonwealth of Pennsylvania
hereby enacts as follows:
Section 1. Section 204 of the act of March 4, 1971 (P.L.6,
No.2), known as the Tax Reform Code of 1971, is amended by
adding a clause to read:
Section 204. Exclusions from Tax.--The tax imposed by
section 202 shall not be imposed upon any of the following:
* * *
(77) The sale at retail or use of tools during the exclusion
period by an individual purchaser for nonbusiness use. The
following shall apply:
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(i) The department shall publish a notice on its publicly
accessible Internet website to give guidance on the
implementation of the exclusion under this clause.
(ii) For the purposes of this clause, the following terms or
phrases shall have the following meanings:
"Exclusion period" means the six-month period immediately
following the effective date of this clause.
"Purchaser" means an individual who places an order and pays
the purchase price by cash or credit during the exclusion period
even if delivery takes place after the exclusion period.
"Tool" includes any handheld or stationary tool that is used
for home or auto repair and maintenance or other similar
occupation-related tool, as well as any accessory item needed
for the operation of a tool.
Section 2. This act shall take effect July 1, 2026, or
immediately, whichever is later.
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