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. 3438
THE GENERAL ASSEMBLY OF PENNSYLVANIA
HOUSE BILL
No. 2538
Session of
2026
INTRODUCED BY M. BROWN, PUGH, STENDER, OLSOMMER, LABS, ROWE,
SMITH, M. MACKENZIE AND LEADBETER, MAY 26, 2026
REFERRED TO COMMITTEE ON FINANCE, MAY 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 items associated with
gardening during the exclusion period to an individual purchaser
for nonbusiness use. The department shall publish a notice on
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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.
"Items associated with gardening" shall mean all tools,
seeds, bulbs, flowers, plants, bushes, trees and other items
commonly used in gardening.
"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.
20260HB2538PN3438 - 2 -
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