HB 1678 — An Act amending the act of March 4, 1971 (P.L.6, No.2), known as the Tax Reform Code of 1971, in gross receipts tax, further providing for imposition of tax; and providing for additional property tax rebate.

PRIOR PRINTER'S NO.

2050 PRINTER'STHE NO.GENERAL ASSEMBLY OF PENNSYLVANIA HOUSE BILL Session of No.

35491678 THE2025 GENERALINTRODUCED ASSEMBLYBY OFFIEDLER, PENNSYLVANIAABNEY, HOUSEINGLIS, BILLGIRAL, SessionPIELLI, ofHILL-EVANS, No.HADDOCK, D.

1678WILLIAMS, FLEMING, CIRESI, WEBSTER, CEPEDA-NCHEZ, FREYTIZ, GREEN, SHUSTERMAN, GUZMAN, HANBIDGE AND HOWARD, JUNE 30, 2025 INTRODUCEDREFERRED BYTO FIEDLER,COMMITTEE ABNEY,ON INGLIS,FINANCE, GIRAL,JUNE PIELLI,30, HILL-EVANS,2025 KHAN,AN WAXMAN,ACT BRENNAN,Amending DOUGHERTY,the RIVERA,act KRAJEWSKI,of SANCHEZ,March HADDOCK,4, D.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;

WILLIAMS, FLEMING, CIRESI, WEBSTER, CEPEDA- FREYTIZ, GREEN, SHUSTERMAN, GUZMAN, HANBIDGE, HOWARD, McNEILL, POWELL, MAYES, BRIGGS, SCOTT, GALLAGHER, RABB, CARROLL, BOROWSKI, T.

DAVIS, KAZEEM, PARKER, KINKEAD, MADSEN, MARKOSEK, MAZZOCCO, HARKINS, GOUGHNOUR, STEELE, BURGOS, HOHENSTEIN, SALISBURY, CONKLIN, MERSKI, DEASY, DAWKINS, SAMUELSON, RUSNOCK AND TIBURCIO, JUNE 30, 2025 AS AMENDED ON SECOND CONSIDERATION, HOUSE OF REPRESENTATIVES, JUNE 8, 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;

prescribing crimes, offenses and penalties," in gross receipts tax, further providing for imposition of tax;tax.

AND PROVIDING FOR ADDITIONAL PROPERTY TAX <-- REBATE.

Imposition of Tax.--(a) General Rule.--Every pipeline company, conduit company, steamboat company, canal company, slack water navigation company, transportation company, and every other company, association, joint-stock association, or limited partnership, now or hereafter incorporated or organized by or under any law of this Commonwealth, or now or hereafter organized or incorporated by any other state or by the United States or any foreign government, and doing business in this Commonwealth, and every copartnership, person or persons owing, operating or leasing to or from another corporation, company, association, joint-stock association, limited partnership, copartnership, person or persons, any pipeline, conduit, steamboat, canal, slack water navigation, or other device for the transportation of freight, passengers, baggage, or oil, except motor vehicles and railroads, and every limited partnership, association, joint-stock association, corporation or company engaged in, or hereinafter engaged in, the transportation of freight or oil within this State, and every telephone company, telegraph company or provider of mobile telecommunications services now or hereafter incorporated or organized by or under any law of this Commonwealth, or now or hereafter organized or incorporated by any other state or by the United States or any foreign government and doing business in this Commonwealth, and every limited partnership, association, joint-stock association, copartnership, person or persons, engaged in telephone or telegraph business or providing mobile telecommunications services in this Commonwealth, and every limited partnership, association, joint-stock association, corporation or company providing digital advertising services in this Commonwealth, shall pay to the State Treasurer, through the Department of Revenue, a tax of forty-five mills with a surtax 20250HB1678PN3549 - 2 - equal to five mills upon each dollar of the gross receipts of the corporation, company or association, limited partnership, joint-stock association, copartnership, person or persons received from:

20250HB1678PN2050 - 2 - (1) passengers, baggage, oil and freight transported wholly within this State;

§ 20250HB1678PN3549 - 3 - 117), except gross receipts derived from:

(ii) the sales for resale to persons, partnerships, 20250HB1678PN2050 - 3 - associations, corporations or political subdivisions subject to the tax imposed by this article upon gross receipts derived from such resale of mobile telecommunications services, including sales of mobile telecommunications services to interconnect with providers of telecommunications services;

* * * (g.1) Exemption for Broadcast and News Media Entities.--The tax imposed under this section on gross receipts derived from 20250HB1678PN3549 - 4 - digital advertising services shall not however be imposed on gross receipts from advertising services displayed on a digital interface owned or operated by a broadcast entity or news media entity.

As used in this subsection, the following words and 20250HB1678PN2050 - 4 - phrases shall have the meanings given to them in this subsection:

* * * SECTIONSection 2.

THEThe ACTamendment ISof AMENDEDsection BY1101(a) ADDINGof ANthe ARTICLEact TOshall READ:apply to the taxable years beginning after December 31, 2025.

<--Section ARTICLE3. XXIX-J ADDITIONAL PROPERTY TAX REBATE SECTION 2901-J.

DEFINITIONS.

"ACCOUNT." THE RESTRICTED ACCOUNT ESTABLISHED UNDER SECTION 2902-J.

"CLAIMANT." AN INDIVIDUAL WHO FILES AN APPLICATION FOR THE REBATE AUTHORIZED UNDER SECTION 2903-J WHO HAS FILED A CLAIM FOR PROPERTY TAX AND:

(1) IS AN ELIGIBLE INDIVIDUAL;

OR (2) LIVES IN THE SAME HOUSEHOLD AS AN ELIGIBLE INDIVIDUAL.

"DEPARTMENT." THE DEPARTMENT OF REVENUE OF THE COMMONWEALTH.

"ELIGIBLE INDIVIDUAL." AN INDIVIDUAL WHO RESIDES IN A 20250HB1678PN3549 - 5 - HOMESTEAD AND IS AT LEAST 65 YEARS OF AGE.

"HOMESTEAD." A DWELLING AND SO MUCH OF THE LAND SURROUNDING IT, AS IS REASONABLY NECESSARY FOR THE USE OF THE DWELLING AS A HOME, OCCUPIED BY A CLAIMANT.

THE TERM INCLUDES:

(1) PREMISES OCCUPIED BY REASON OF OWNERSHIP OR LEASE IN A COOPERATIVE HOUSING CORPORATION.

(2) MOBILE HOMES WHICH ARE ASSESSED AS REALTY FOR LOCAL PROPERTY TAX PURPOSES AND THE LAND, IF OWNED OR RENTED BY THE CLAIMANT, UPON WHICH THE MOBILE HOME IS SITUATED, AND OTHER SIMILAR LIVING ACCOMMODATIONS.

(3) A PART OF A MULTIDWELLING OR MULTIPURPOSE BUILDING AND A PART OF THE LAND UPON WHICH THE DWELLING OR BUILDING IS BUILT.

(4) PREMISES OCCUPIED BY REASON OF THE CLAIMANT'S OWNERSHIP OF A DWELLING LOCATED ON LAND OWNED BY A NONPROFIT INCORPORATED ASSOCIATION, OF WHICH THE CLAIMANT IS A MEMBER, IF THE CLAIMANT IS REQUIRED TO PAY A PRO RATA SHARE OF THE PROPERTY TAXES LEVIED AGAINST THE ASSOCIATION'S LAND.

(5) PREMISES OCCUPIED BY A CLAIMANT IF THE CLAIMANT IS REQUIRED BY LAW TO PAY A PROPERTY TAX BY REASON OF THE CLAIMANT'S OWNERSHIP, INCLUDING A POSSESSORY INTEREST, IN THE DWELLING, THE LAND OR BOTH.

AN OWNER INCLUDES A PERSON IN POSSESSION UNDER A CONTRACT OF SALE, DEED OF TRUST, LIFE ESTATE, JOINT TENANCY OR TENANCY IN COMMON OR BY REASON OF STATUTES OF DESCENT AND DISTRIBUTION.

"PROPERTY TAX RELIEF FUND." THE PROPERTY TAX RELIEF FUND ESTABLISHED UNDER 4 PA.C.S.

§ 1409 (RELATING TO PROPERTY TAX RELIEF FUND).

"REAL PROPERTY TAXES." ALL TAXES ON A HOMESTEAD, EXCLUSIVE OF MUNICIPAL ASSESSMENTS, DELINQUENT CHARGES AND INTEREST, DUE 20250HB1678PN3549 - 6 - AND PAYABLE DURING A CALENDAR YEAR.

"REBATE." THE REBATE AUTHORIZED UNDER SECTION 2903-J.

SECTION 2902-J.

ACCOUNT ESTABLISHED.

THERE SHALL BE ESTABLISHED WITHIN THE PROPERTY TAX RELIEF FUND A RESTRICTED ACCOUNT FOR THE PURPOSE OF PAYING THE REBATES UNDER SECTION 2903-J.

ALL OF THE MONEY COLLECTED UNDER SECTION 1101(A)(4) SHALL BE DEPOSITED INTO THE ACCOUNT.