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.

PRINTER'S NO. 1471
THE GENERAL ASSEMBLY OF PENNSYLVANIA
SENATE BILL
No. 1199
Session of
2026
INTRODUCED BY L. WILLIAMS, MUTH, SAVAL, KEARNEY, TARTAGLIONE,
VOGEL AND CAPPELLETTI, FEBRUARY 27, 2026
REFERRED TO FINANCE, FEBRUARY 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 gross receipts tax, further providing for
imposition of tax.
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
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
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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
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
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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. §
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
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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
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
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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 amendment of section 1101(a) of the act shall
apply to the taxable years beginning after December 31, 2025.
Section 3. This act shall take effect immediately.
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