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. 3416
THE GENERAL ASSEMBLY OF PENNSYLVANIA
HOUSE BILL
No. 2523
Session of
2026
INTRODUCED BY FLOOD, KUTZ, LEADBETER, M. MACKENZIE, MARCELL,
OLSOMMER, PUGH, ROWE, SMITH, STENDER AND WEAKNECHT,
MAY 15, 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 school supplies during the
exclusion period to an individual purchaser for educational
purposes. The department shall publish a notice on the publicly
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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 terms or
phrases shall have the following meanings:
"Art supplies" shall mean clay and glazes, paints,
paintbrushes, sketch and drawing pads and watercolors.
"Exclusion period" shall mean the three-month period between
July 1, 2026, and September 30, 2026, and between each July 1
and the succeeding September 30 thereafter.
"Instructional materials" shall mean reference books,
reference maps and globes, textbooks and workbooks.
"Purchaser" shall mean 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.
"School supplies" shall mean items such as book bags, pens,
pencils, pencil sharpeners, markers, highlighters, erasers,
crayons, blackboard chalk, notebooks, binders, folders, paper,
index cards, glue, tape, rulers, scissors, staplers, staples,
paper clips, printer ink, calculators, compasses, protractors,
lunch boxes, school supply boxes, personal organizers, art
supplies, clipboards, dry erase markers, sticky notes, bulletin
board paper, educational posters, games and instructional
materials with a sales price of fifty dollars ($50) or less per
item.
Section 2. This act shall take effect immediately.
20260HB2523PN3416 - 2 -
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