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 time for filing returns.

PRINTER'S NO. 722
THE GENERAL ASSEMBLY OF PENNSYLVANIA
SENATE BILL
No. 695
Session of
2025
INTRODUCED BY PHILLIPS-HILL, ROTHMAN, PENNYCUICK, MASTRIANO,
KEARNEY, ROBINSON, KEEFER AND STEFANO, APRIL 30, 2025
REFERRED TO FINANCE, APRIL 30, 2025
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 time
for filing returns.
The General Assembly of the Commonwealth of Pennsylvania
hereby enacts as follows:
Section 1. Section 217(a) and (b) of the act of March 4,
1971 (P.L.6, No.2), known as the Tax Reform Code of 1971, are
amended to read:
Section 217. Time for Filing Returns.--(a) Quarterly and
Monthly Returns:
(1) For the year in which this article becomes effective and
in each year thereafter until January 1, 2026, a return shall be
filed quarterly by every licensee on or before the twentieth day
of April, July, October and January for the three months ending
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the last day of March, June, September and December.
(1.1) For the year beginning after December 30, 2025, and in
each year thereafter, a return shall be filed annually by every
licensee whose actual tax liability for the fourth calendar
quarter of the preceding year is less than or equal to one
thousand two hundred dollars ($1,200).
(2) For the year in which this article becomes effective,
and in each year thereafter until January 1, 2026, a return
shall be filed monthly with respect to each month by every
licensee whose actual tax liability for the third calendar
quarter of the preceding year equals or exceeds six hundred
dollars ($600) and is less than twenty-five thousand dollars
($25,000). Such returns shall be filed on or before the
twentieth day of the next succeeding month with respect to which
the return is made. Any licensee required to file monthly
returns hereunder shall be relieved from filing quarterly
returns.
(2.1) For the year beginning after December 30, 2025, and in
each year thereafter, a return shall be filed quarterly by every
licensee whose actual tax liability for the fourth calendar
quarter of the preceding year exceeds one thousand two hundred
dollars ($1,200) and is less than twenty-five thousand dollars
($25,000). Such returns shall be filed on or before the
twentieth day of the next succeeding month with respect to which
the return is made. Any licensee required to file monthly
returns hereunder shall be relieved from filing quarterly
returns.
(3) With respect to every licensee whose actual tax
liability for the third calendar quarter of the preceding year
equals or exceeds twenty-five thousand dollars ($25,000) and is
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less than one hundred thousand dollars ($100,000), the licensee
shall, on or before the twentieth day of each month, file a
single return consisting of all of the following:
(i) Either of the following:
(A) An amount equal to fifty per centum of the licensee's
actual tax liability for the same month in the preceding
calendar year if the licensee was a monthly filer or, if the
licensee was a quarterly [or], semi-annual or annual filer,
fifty per centum of the licensee's average actual tax liability
for that tax period in the preceding calendar year. The average
actual tax liability shall be the actual tax liability for the
tax period divided by the number of months in that tax period.
For licensees that were not in business during the same month in
the preceding calendar year or were in business for only a
portion of that month, fifty per centum of the average actual
tax liability for each tax period the licensee has been in
business. If the licensee is filing a tax liability for the
first time with no preceding tax periods, the amount shall be
zero.
(B) An amount equal to or greater than fifty per centum of
the licensee's actual tax liability for the same month.
(ii) An amount equal to the taxes due for the preceding
month, less any amounts paid in the preceding month as required
by subclause (i).
(4) With respect to each month by every licensee whose
actual tax liability for the third calendar quarter of the
preceding year equals or exceeds one hundred thousand dollars
($100,000), the licensee shall, on or before the twentieth day
of each month, file a single return consisting of the amounts
under clause (3)(i)(A) and (ii).
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(5) The amount due under clause (3)(i) or (4) shall be due
the same day as the remainder of the preceding month's tax.
(6) The department shall determine whether the amounts
reported under clause (3) or (4) shall be remitted as one
combined payment or as two separate payments.
(7) The department may require the filing of the returns and
the payments for these types of filers by electronic means
approved by the department.
(8) Any licensee filing returns under clause (3) or (4)
shall be relieved of filing quarterly returns.
(9) If a licensee required to remit payments under clause
(3) or (4) fails to make a timely payment or makes a payment
which is less than the required amount, the department may, in
addition to any applicable penalties, impose an additional
penalty equal to five per centum of the amount due under clause
(3) or (4) which was not timely paid. The penalty under this
clause shall be determined when the tax return is filed for the
tax period.
(b) Annual Returns. For the calendar year 1971, and for each
year thereafter until January 1, 2026, no annual return shall be
filed, except as may be required by rules and regulations of the
department promulgated and published at least sixty days prior
to the end of the year with respect to which the returns are
made. Where such annual returns are required licensees shall not
be required to file such returns prior to the twentieth day of
the year succeeding the year with respect to which the returns
are made.
* * *
Section 2. This act shall take effect immediately.
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