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PRINTER'S NO. 1550
THE GENERAL ASSEMBLY OF PENNSYLVANIA
SENATE BILL
No. 1246
Session of
2026
INTRODUCED BY FLYNN, PICOZZI, MALONE, TARTAGLIONE, PENNYCUICK,
J. WARD AND DUSH, MARCH 30, 2026
REFERRED TO FINANCE, MARCH 30, 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
definitions and for imposition of tax.
This act shall be known and may be cited as the Online Adult
Content Subscription Tax Act.
The General Assembly finds and declares as follows:
(1) The act of March 4, 1971 (P.L.6, No.2), known as the
Tax Reform Code of 1971, authorizes the Commonwealth to levy
sales and use taxes on tangible personal property and certain
services.
(2) To ensure parity and uniformity, subscriptions to
online services providing access to sexually explicit
commercial content should be treated as taxable digital goods
and services when purchased for use in this Commonwealth.
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(3) This act is not intended to prohibit or censor
expressive activity but is solely intended to ensure
equitable tax treatment of certain commercial transactions.
The General Assembly of the Commonwealth of Pennsylvania
hereby enacts as follows:
Section 1. Sections 201 and 202 of the act of March 4, 1971
(P.L.6, No.2), known as the Tax Reform Code of 1971, are amended
by adding subsections to read:
Section 201. Definitions.--The following words, terms and
phrases when used in this Article II shall have the meaning
ascribed to them in this section, except where the context
clearly indicates a different meaning:
* * *
(vvv) "Sexually explicit commercial content."
(1) Digital images, video or audiovisual works offered for
consideration through an online service that depict sexual acts
or nudity and are intended primarily for sexual arousal.
(2) The term does not include any of the following:
(i) Works with serious literary, artistic, political or
scientific value.
(ii) Educational or medical materials.
(iii) Content determined by a court of competent
jurisdiction to be constitutionally protected in a specific
instance.
(www) "Online adult content subscription." A recurring
membership, subscription fee or one-time access fee charged by a
vendor for access to sexually explicit commercial content
through a website, mobile application or online platform.
Section 202. Imposition of Tax.--* * *
(i) An additional tax is imposed upon each sale at retail in
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this Commonwealth and the use within this Commonwealth of online
adult content subscriptions, subject to the following:
(1) The additional tax shall be at the rate of ten per cent.
(2) The additional tax shall be collected by the vendor at
the time of the transaction and shall be stated separately from
the charge for the online adult content subscription.
(3) The place of taxation shall be determined in accordance
with factors under this act and regulations promulgated
thereunder, including billing address, payment address and other
indicia adopted by the department.
(4) Each vendor making taxable sales of online adult content
subscriptions to residents of this Commonwealth shall be deemed
a vendor maintaining a place of business in this Commonwealth,
regardless of physical presence, and shall be required to
register, collect and remit the tax in accordance with this act.
(5) The department shall adopt rules and regulations
necessary to carry out the provisions of this subsection,
including methods to determine the location of the subscriber of
the online adult content subscription.
(6) All taxes, interest and penalties collected in
accordance with this subsection shall be deposited into the
General Fund and credited as nonmotor tax revenues.
(7) A vendor claiming an exemption from registering,
collecting and remitting the tax shall maintain records as the
department requires.
(8) The additional tax does not apply to:
(i) Sales of educational, artistic, scientific or medical
digital content.
(ii) Sales to or use by the United States Government or the
Commonwealth and its political subdivisions.
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(iii) Advertising services provided on online platforms
unrelated to online adult content subscription access.
Section 2. This act shall take effect July 1, 2027.
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