HB 2522 — 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.   3415

                     THE GENERAL ASSEMBLY OF PENNSYLVANIA



                         HOUSE BILL
                         No. 2522
                                               Session of
                                                 2026

     INTRODUCED BY M. BROWN, PUGH, STENDER, OLSOMMER, LABS, ROWE,
        MARCELL, SMITH, M. MACKENZIE AND LEADBETER, MAY 14, 2026

     REFERRED TO COMMITTEE ON FINANCE, MAY 20, 2026


                                    AN ACT
 1   Amending the act of March 4, 1971 (P.L.6, No.2), entitled "An
 2      act relating to tax reform and State taxation by codifying
 3      and enumerating certain subjects of taxation and imposing
 4      taxes thereon; providing procedures for the payment,
 5      collection, administration and enforcement thereof; providing
 6      for tax credits in certain cases; conferring powers and
 7      imposing duties upon the Department of Revenue, certain
 8      employers, fiduciaries, individuals, persons, corporations
 9      and other entities; prescribing crimes, offenses and
10      penalties," in sales and use tax, further providing for
11      exclusions from tax.
12      The General Assembly of the Commonwealth of Pennsylvania
13   hereby enacts as follows:
14      Section 1.    Section 204 of the act of March 4, 1971 (P.L.6,
15   No.2), known as the Tax Reform Code of 1971, is amended by
16   adding a clause to read:
17      Section 204.    Exclusions from Tax.--The tax imposed by
18   section 202 shall not be imposed upon any of the following:
19      * * *
20      (77)    The sale at retail or use of items associated with
21   homecoming and prom during the exclusion period to an individual
22   purchaser for nonbusiness use. The department shall publish a
 1   notice on the publicly accessible Internet website of the
 2   department to provide guidance on the implementation of the
 3   exclusion under this clause. For the purposes of this clause,
 4   the following words and phrases shall have the following
 5   meanings:
 6      "Exclusion period" shall mean the six months immediately
 7   following the effective date of this clause.
 8      "Homecoming" shall mean a formal dance, usually held at the
 9   beginning of the high school or college academic year, involving
10   formal attire, dinner and dancing.
11      "Items associated with homecoming and prom" shall mean all
12   dresses, suits, tuxedos, shoes, flowers and other accessories
13   associated with attending homecoming or prom.
14      "Prom" shall mean a formal dance, usually held at the end of
15   the high school or college academic year, involving formal
16   attire, dinner and dancing.
17      "Purchaser" shall mean an individual who places an order and
18   pays the purchase price by cash or credit during the exclusion
19   period, regardless of delivery occurring after the exclusion
20   period.
21      Section 2.   This act shall take effect July 1, 2026, or
22   immediately, whichever is later.




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