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. 3415
THE GENERAL ASSEMBLY OF PENNSYLVANIA
HOUSE BILL
No. 2522
Session of
2026
INTRODUCED BY M. BROWN, PUGH, STENDER, OLSOMMER, LABS, ROWE,
MARCELL, SMITH, M. MACKENZIE AND LEADBETER, MAY 14, 2026
REFERRED TO COMMITTEE ON FINANCE, MAY 20, 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 items associated with
homecoming and prom during the exclusion period to an individual
purchaser for nonbusiness use. The department shall publish a
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notice on the publicly accessible Internet website of the
department to provide guidance on the implementation of the
exclusion under this clause. For the purposes of this clause,
the following words and phrases shall have the following
meanings:
"Exclusion period" shall mean the six months immediately
following the effective date of this clause.
"Homecoming" shall mean a formal dance, usually held at the
beginning of the high school or college academic year, involving
formal attire, dinner and dancing.
"Items associated with homecoming and prom" shall mean all
dresses, suits, tuxedos, shoes, flowers and other accessories
associated with attending homecoming or prom.
"Prom" shall mean a formal dance, usually held at the end of
the high school or college academic year, involving formal
attire, dinner and dancing.
"Purchaser" shall mean an individual who places an order and
pays the purchase price by cash or credit during the exclusion
period, regardless of delivery occurring after the exclusion
period.
Section 2. This act shall take effect July 1, 2026, or
immediately, whichever is later.
20260HB2522PN3415 - 2 -
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