HB 1813 — An Act repealing the act of August 19, 1932 (Sp.Sess., P.L.92, No.53), known as the Emergency Relief Sales Tax Act.

PRINTER'S NO.    2230

                     THE GENERAL ASSEMBLY OF PENNSYLVANIA



                         HOUSE BILL
                         No. 1813
                                               Session of
                                                 2025

     INTRODUCED BY FLOOD, BANTA, BARGER, BERNSTINE, GROVE, HAMM AND
        JAMES, AUGUST 20, 2025

     REFERRED TO COMMITTEE ON FINANCE, AUGUST 20, 2025


                                    AN ACT
 1   Repealing the act of August 19, 1932 (Sp.Sess., P.L.92, No.53),
 2      entitled "An act to provide revenue by imposing an emergency
 3      sales tax for State purposes upon sales of tangible personal
 4      property by vendors, as herein defined; prescribing the
 5      method and manner of collecting such tax; and providing
 6      penalties."
 7      The General Assembly of the Commonwealth of Pennsylvania
 8   hereby enacts as follows:
 9      Section 1.    The act of August 19, 1932 (Sp.Sess., P.L.92,
10   No.53), known as the Emergency Relief Sales Tax Act, is
11   repealed:
12                                 [AN ACT
13   To provide revenue by imposing an emergency sales tax for State
14      purposes upon sales of tangible personal property by vendors,
15      as herein defined; prescribing the method and manner of
16      collecting such tax; and providing penalties.
17      Section 1.    Short Title.--Be it enacted, &c., That this act
18   shall be known, and may be cited, as the "Emergency Relief Sales
19   Tax Act."
20      Section 2.    Definitions.--The following words, terms, and
 1   phrases, when used in this act, shall have the meanings ascribed
 2   to them in this section, except where the context clearly
 3   indicates a different meaning.
 4      "Association."    Any partnership, limited partnership, or
 5   other form of unincorporated enterprise owned by two or more
 6   persons.
 7      "Department."    The Department of Revenue of this
 8   Commonwealth.
 9      "Gross Income."    The value proceeding or accruing from the
10   sale of tangible personal property, including all receipts, cash
11   and credits, without any deduction on account of the cost of the
12   property sold, the cost of materials used, labor or service
13   cost, interest or discount paid, or any other expense
14   whatsoever.
15      "Sale."    Any transfer, exchange or barter, in any manner or
16   by any means whatsoever, for a consideration.
17      "Vendor."    Every natural person, association, or corporation
18   who or which sells tangible personal property to a consumer or
19   to any person for any purpose other than for resale; but the
20   term "vendor" shall not include farmers who sell their own farm
21   products. Whenever used in any clause prescribing a fine or
22   imprisonment, or both, the term "vendor," as applied to
23   associations, shall mean the partners or members thereof, and,
24   as applied to corporations, the officers thereof.
25      The singular shall include the plural, and the masculine
26   shall include the feminine and the neuter. Section headings
27   shall not be deemed or construed to limit the text of the
28   sections of this act.
29      Section 3.   Imposition and Rate of Tax.--A State tax is
30   hereby imposed and assessed upon sales of tangible personal

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 1   property, at the rate of one per centum upon each dollar of the
 2   gross income derived from the sales of such property, during the
 3   six months period ending February twenty-eighth, one thousand
 4   nine hundred thirty-three, or any part of such period, except
 5   such sales of tangible personal property made to the United
 6   States Government upon evidence satisfactory to the department,
 7   and except such sales as are not within the taxing power of this
 8   Commonwealth under the Commerce Clause of the Constitution of
 9   the United States. Such tax shall be paid at the time and in the
10   manner hereinafter provided.
11      Section 4.   Vendors to File Return.--For the purpose of
12   ascertaining the amount of tax payable under this act, it shall
13   be the duty of every vendor, on or before the first day of
14   April, one thousand nine hundred thirty-three, to transmit to
15   the department, upon a form prescribed, prepared, and furnished
16   by the department, a return, under oath or affirmation, of the
17   gross income arising from sales of tangible personal property
18   during the preceding six months' period ending February twenty-
19   eighth, one thousand nine hundred thirty-three. Such return
20   shall show such further information as the department may
21   prescribe.
22      Section 5.   Assessment and Payment of Tax.--Every vendor, at
23   the time of making the return required under section four, shall
24   compute and pay to the department the tax due to the
25   Commonwealth by him for the preceding six months' period. The
26   amount of all taxes imposed under the provisions of this act
27   shall be due and payable at the time the return for such six
28   months' period is required to be filed with the department by
29   this act: Provided, however, That any vendor may, on or before
30   the first day of April, one thousand nine hundred and thirty-

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 1   three, pay one-half of such tax concurrently with the filing of
 2   such report, and may pay the remaining one-half of the said tax
 3   in a single instalment on or before the fifteenth day of May,
 4   one thousand nine hundred and thirty-three, but the amount of
 5   the tax not paid on or before the first day of April, one
 6   thousand nine hundred and thirty-three, shall bear interest at
 7   the rate of six per centum per annum until the fifteenth day of
 8   May, one thousand nine hundred and thirty-three, and twelve per
 9   centum per annum thereafter.
10      Section 6.   Retention of Records by Vendors.--Every vendor
11   shall maintain and keep for a period of two years such record or
12   records of tangible personal property sold within this
13   Commonwealth by such vendor, together with invoices, bills of
14   lading and other pertinent papers, as may be required by the
15   department.
16      Section 7.   Additional Assessment.--If the department is not
17   satisfied with the return and payment of tax made by any vendor
18   under the provisions of this act, it is hereby authorized and
19   empowered to make an additional assessment of the tax due by
20   such taxpayer, based upon the facts contained in the return or
21   upon any information within its possession or that shall come
22   into its possession. Promptly after the date of such additional
23   assessment, the department shall give or send, by mail or
24   otherwise, a notice thereof to the vendor, together with written
25   notice of the time when and the place where the vendor may be
26   heard on a petition for reassessment, as hereinafter provided.
27      Section 8.   Estimated Assessment upon Failure to File
28   Return.--If a vendor shall neglect or refuse to make any return
29   and payment of tax required by this act, the department shall--
30   if it deem it more conducive to the public interest, because of

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 1   the supposed smallness of the debt or for any other reason, not
 2   to compel the exhibition of the vendor's account--make an
 3   estimated assessment of the probable amount of the account of
 4   the delinquent, together with a penalty of ten per centum of the
 5   amount so assessed. The department shall promptly thereafter
 6   give or send, by mail or otherwise, notice of such estimated
 7   assessment and penalty to the vendor against whom the same was
 8   made. There shall be no right to petition for reassessment or to
 9   appeal from any such estimated assessment made on account of the
10   neglect or refusal of such vendor to make any return and payment
11   of tax within a time prescribed by this act, but the department
12   may permit the required return to be filed and permit a tax to
13   be paid on the basis of such return, subject to investigation as
14   in other cases. There shall be no right to appeal from the
15   refusal of the department to permit the filing of a return in
16   such a case.
17      Section 9.    Estimated Additional Assessments upon Refusal to
18   Permit Examination of Books.--The department shall have the
19   power to make an estimated additional assessment, to which shall
20   be added a penalty of ten per centum of the assessment, against
21   any vendor who has filed any return as required by this act but
22   who refuses to permit the department, or any duly authorized
23   agent thereof, to examine his books of account and papers
24   pertaining to the business for which the return was made. The
25   department shall promptly thereafter give or send, by mail or
26   otherwise, notice of such estimated additional assessment and
27   penalty to the vendor, together with written notice of the time
28   when and the place where the vendor may be heard on a petition
29   for reassessment, as hereinafter provided.
30      Section 10.   Payment and Due Date of Taxes Assessed by the

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 1   Department.--All taxes and penalties resulting from any
 2   assessment made by the department shall be due and payable ten
 3   days after notice thereof is given or sent, by mail or
 4   otherwise, to the vendor against whom such assessment was made.
 5      Section 11.   Petition for Reassessment of Certain
 6   Assessments; Notice.--Any vendor against whom an additional
 7   assessment or estimated additional assessment shall be made by
 8   the department may petition for a reassessment. Notice of an
 9   intention to file such a petition or to appear and be heard
10   shall be given to the department prior to the time the amount
11   becomes due and payable, to wit, within ten days after notice of
12   such assessment is given to the vendor as provided in this act.
13   Petitions for reassessment may be filed with the department on
14   or before the date designated in the notice of such assessment
15   when hearings on such petitions will be held. The department
16   shall hold such hearings in each county as may be necessary to
17   hear and determine petitions for reassessment. Such hearings
18   shall be held at the time and place indicated in the notice of
19   such assessment given to the vendor. All petitions filed with
20   the department shall set forth specifically and in detail the
21   grounds upon which it is claimed such assessment is erroneous or
22   unlawful, and shall be accompanied by an affidavit, under oath
23   or affirmation, certifying to the correctness of the facts
24   stated therein. If no petition for reassessment is filed with
25   the department, the vendor may, in lieu thereof, appear at the
26   hearing and present his petition orally, in which event all
27   testimony or statements of facts shall be made under oath or
28   affirmation.
29      If the vendor is still dissatisfied with the finding of the
30   department, he shall have the right to appeal to the court of

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 1   common pleas of the proper county within twenty days after
 2   notice of the determination of the petition is given to him by
 3   the department. If any vendor shall fail to give due notice of
 4   an intention to petition for reassessment or to file a petition
 5   for reassessment after due notice of his intention to do so, or
 6   to appeal to the court of common pleas, within the time and in
 7   the manner herein set forth, the right to do so shall be forever
 8   barred, and any such vendor so failing shall not thereafter be
 9   permitted, in a suit for the recovery of such tax, to set up any
10   ground of defense which might have been determined either by the
11   department or the court of common pleas as aforesaid: Provided,
12   That nothing contained in this section shall be construed to
13   grant to any such vendor the right to petition for reassessment
14   or to appeal from estimated assessments made by the department
15   for neglect or refusal to make a return within the time
16   prescribed by this act: And provided further, That every appeal
17   to the court of common pleas under this section shall specify
18   all the objections to the assessment, and any objection not
19   specified in the appeal shall not be considered by the court. In
20   all cases of petitions for reassessment and appeals, the burden
21   of proof shall be on the petitioner or appellant, as the case
22   may be.
23      Section 12.   Enforcement; Rules and Regulations.--The
24   department is hereby charged with the enforcement of the
25   provisions of this act, and is hereby authorized and empowered
26   to prescribe, adopt, promulgate, and enforce rules and
27   regulations relating to any matter or thing pertaining to the
28   administration and enforcement of the provisions of this act,
29   and the collection of taxes, penalties and interest imposed by
30   this act.

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 1      Section 13.     Inquisitorial Powers of Department.--The
 2   department, or any agent authorized in writing by it, is hereby
 3   authorized to examine the books, papers, records and equipment,
 4   and to investigate the character of the business of any vendor,
 5   in order to verify the accuracy of any return made, or, if no
 6   return was made by such vendor, to ascertain and assess the tax
 7   imposed by this act. Every such vendor is hereby directed and
 8   required to give to the department, or its duly authorized
 9   agent, the means, facilities and opportunity for such
10   examinations and investigations as are hereby provided and
11   required. Any information gained by the department, as a result
12   of any returns, investigations or verifications required to be
13   made by this act, shall be confidential except for official
14   purposes, and any person divulging such information shall be
15   guilty of a misdemeanor, and, upon conviction thereof, shall be
16   sentenced to pay a fine of not less than one hundred dollars
17   ($100.00) or more than five hundred dollars ($500.00), and costs
18   of prosecution, or to undergo imprisonment for not more than six
19   months, or both.
20      Section 14.     Department to Prepare and Furnish Returns.--The
21   department is hereby authorized to prepare and have printed
22   proper forms for returns to be distributed, upon request, to
23   vendors.
24      Section 15.     Collection of Delinquent Taxes.--The department
25   shall call upon the Department of Justice to collect any taxes
26   or penalties imposed under the provisions of this act which are
27   not paid within thirty days from--
28      (1)     The date the taxes are due and payable, if a return was
29   filed.
30      (2)     Ten days after notice of an additional or estimated

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 1   additional assessment is given or sent to the vendor, as
 2   heretofore provided, if no notice of an intention to petition
 3   for reassessment or if no petition for reassessment is filed
 4   with the department.
 5      (3)   Ten days after notice of an estimated assessment is
 6   given or sent to the vendor, as heretofore provided.
 7      (4)   The date of the determination of a petition for
 8   reassessment by the department, if an appeal is not taken to the
 9   court of common pleas.
10      Section 16.   Interest.--The tax imposed by this act shall
11   bear interest at the rate of twelve per centum per annum from
12   the date such tax is due and payable, except that any tax found
13   due as the result of an appeal to the court of common pleas, or
14   any appellate court, shall bear interest at the rate of six per
15   centum per annum from the date the tax was originally due and
16   payable. In cases of petitions to the department for
17   reassessment, any balance finally found due by the department
18   shall bear interest at the rate of twelve per centum per annum
19   from ten days after notice of the additional or estimated
20   additional assessment was given to the vendor by the department.
21      Section 17.   Penalties.--(a)   Any vendor who shall
22   intentionally neglect or refuse to make the return to the
23   department, as required by this act, shall be guilty of a
24   misdemeanor, and, upon conviction thereof, shall be sentenced to
25   pay a fine of not less than one hundred dollars ($100.00) or not
26   more than five hundred dollars ($500.00), and costs of
27   prosecution, or to undergo imprisonment for not more than six
28   months, or both, in the discretion of the court.
29      (b)   Any vendor who shall refuse to permit the department, or
30   any agent appointed in writing by it, to examine his books,

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 1   papers, invoices and other records, in and upon any premises
 2   where the same are kept, to the extent necessary to verify any
 3   return made or to ascertain and assess the tax imposed by this
 4   act if no return was made, or who shall fail or refuse to
 5   maintain and keep for two years such records, invoices, bills of
 6   lading and other papers pertaining to the sale of tangible
 7   personal property as may be required by the department, shall be
 8   guilty of a misdemeanor, and, upon conviction thereof, shall be
 9   sentenced to pay a fine of not less than one hundred dollars
10   ($100.00) or more than five hundred dollars ($500.00), or to
11   suffer imprisonment of not more than six months, or both, in the
12   discretion of the court.
13      Section 18.   Disposition of Tax, Fines and Penalties.--All
14   taxes, fees, interest, fines and penalties imposed by this act
15   shall be paid into the State Treasury, through the department,
16   and credited to the General Fund.
17      Section 19.   Continuance of Existing Powers.--The powers
18   conferred by this act upon the department relating to the
19   administration or enforcement of this act shall be in addition
20   to, but not exclusive of, any other powers heretofore or
21   hereafter conferred upon the department by law.
22      Section 20.   Purpose of Act to Provide Relief Funds.--The
23   purpose of this act is to provide revenue to meet any
24   appropriations for unemployment relief made by the extraordinary
25   session of the General Assembly of one thousand nine hundred
26   thirty-two.
27      Section 21.   Vendors May Add Price of Tax to Retail Price of
28   Property Sold.--Vendors may add to the retail price of any
29   tangible personal property, the sale of which is subject to a
30   tax hereunder, one per centum of the retail price, provided the

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 1   retail price and the one per centum, representing the tax
 2   imposed by this act, be separately stated on price display
 3   signs, tickets and tags, and bills rendered in connection with
 4   the sale of such property.
 5      Section 22.    Emergency Tax in Addition to Existing Taxes.--
 6   The tax imposed by this act shall be in addition to any taxes
 7   now imposed by law upon vendors.
 8      Section 23.    Constitutionality.--It is the intention of the
 9   General Assembly, that, if this act cannot take effect in its
10   entirety because of the judgment of any court of competent
11   jurisdiction holding unconstitutional any part or parts thereof,
12   the remaining provisions of the act shall be given full force
13   and effect as completely as if the part or parts held
14   unconstitutional had not been included herein.
15      Section 24.    Effective Date.--This act shall become effective
16   immediately upon its passage, and approval by the Governor.]
17      Section 2.    This act shall take effect in 60 days.




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