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. 729
THE GENERAL ASSEMBLY OF PENNSYLVANIA
SENATE BILL
No. 717
Session of
2025
INTRODUCED BY BOSCOLA, FONTANA, KANE, COSTA, MILLER AND COLEMAN,
MAY 2, 2025
REFERRED TO FINANCE, MAY 2, 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
exclusions from tax.
The General Assembly of the Commonwealth of Pennsylvania
hereby enacts as follows:
Section 1. Section 204(58) 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 clause to read:
Section 204. Exclusions from Tax.--The tax imposed by
section 202 shall not be imposed upon any of the following:
* * *
(58) The sale at retail or use of a personal computer, a
tablet, a personal digital assistant, a peripheral device or an
Internet access device, or a service contract or single-user
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licensed software purchased in conjunction with a personal
computer, tablet, personal digital assistant, peripheral device
or Internet access device, with a sales price of not more than
one thousand five hundred dollars ($1,500), during the exclusion
period by an individual purchaser for nonbusiness use. The
exclusion does not include a sale at retail or use of, leasing,
rental or repair of a personal computer, tablet, personal
digital assistant, peripheral device or Internet access device;
mainframe computers; network servers; local area network hubs;
routers and network cabling; network operating systems;
multiple-user licensed software; minicomputers; [hand-held
computers; personal digital assistants without Internet access;]
hardware word processors; graphical calculators; video game
consoles; telephones; digital cameras; pagers; compact discs
encoded with music or movies; and digital versatile discs
encoded with music or movies. For purposes of this clause, the
phrase "exclusion period" means the period of time from [August
5, 2001, to and including August 12, 2001, and from February 17,
2002, to and including February 24, 2002.] the first Saturday in
August to and including the third Saturday in August. For
purposes of this clause, "purchaser" means 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.
* * *
(77) The sale at retail or use of school supplies during the
exclusion period for nonbusiness purposes. For the purposes of
this clause:
(i) The following terms or phrases shall have the following
meanings:
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"Art supplies" shall mean clay and glazes, paints,
paintbrushes, sketch and drawing pads and watercolors.
"Exclusion period" shall mean the first Saturday in August to
and including the third Saturday in August.
"Instructional materials" shall mean reference books,
reference maps and globes, textbooks and workbooks.
"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 and games and instructional
materials with a sales price of fifty dollars ($50) or less per
item.
(ii) The department may promulgate regulations to include
other similar items in the definitions of "art supplies,"
"instructional materials" and "school supplies" under this
clause.
Section 2. This act shall take effect immediately.
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