HB 2371 — 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; and, in gross receipts tax, further providing for imposition of tax; and providing for reporting and for transfers.

Bill Text

• Printer's No. PN3160 View text Current pdf

AI-generated reading aid from the bill's amendatory text — verify against the official bill.

The bill introduces tax exemptions and reductions for mobile telecommunications services during designated holiday periods.

• Section 204

  (77) Notwithstanding section 201(k)(19) or (o)(18), the sale at retail or use of mobile telecommunications service during the exclusion period if the purchase is pursuant to a service contract between the service provider and a customer and if the service contract requires the customer to make periodic payments to maintain the mobile telecommunications service. For the purposes of this clause, the term "exclusion period" means the time period beginning with the first day of the first full month after the effective date of this clause and ending on the first day after the end of the sixth full month after the effective date of this clause.

  This adds an exclusion from sales tax for certain mobile telecommunications services during a specified period linked to service contracts.

• Section 1101(a)

  Every → Except as provided under subsection (a.2), every

  This modifies the language to introduce a conditional exception for mobile telecommunications services.

• Section 1101(a.2)

  Beginning with the first day of the first full month after the effective date of this subsection and ending on the first day after the end of the sixth full month after the effective date of this subsection, the rate of tax under section 1101(a) for gross receipts received from providing mobile telecommunications services shall be zero mills.

  This establishes a temporary tax holiday on gross receipts from mobile telecommunications services.

• Section 1101(h)(2)

  For purposes of this article, the entire benefit of the tax holiday under subsection (a.2) shall derive to the benefit of the consumer purchasing services from providers of mobile telecommunications services. Said benefit shall be provided in the form of the elimination of the State tax surcharge, which shall be clearly reflected in each consumer's bill. Failure to pass through the entire benefit of the tax holiday to the consumer shall subject the provider of the mobile telecommunications services to a civil penalty of at least one thousand dollars ($1,000), but not more than five thousand dollars ($5,000), and such additional relief as the court may deem appropriate.

  This mandates that the benefits of the tax holiday must be passed on to consumers, with penalties for non-compliance.

• Section 3

  For the purposes of implementing the tax holiday under section 1101(a.2) of the act, a person subject to the tax under section 1101(a) of the act shall separately report its monthly gross receipts received from providing mobile telecommunications services subject to tax under section 1101(a) of the act to the Department of Revenue and shall not be taxed upon gross receipts received during said months if the requirements of section 1101(h)(2) of the act are satisfied.

  This requires separate reporting of gross receipts for mobile telecommunications during the tax holiday for compliance.

• Section 6

  For the 2026-2027 fiscal year, the transfer of money from the tax under Article XI of the act under section 6 of the act of November 29, 2004 (P.L.1376, No.178), known as the Alternative Fuels Incentive Act, shall be no less than the amount transferred under section 6 of the Alternative Fuels Incentive Act for the 2025-2026 fiscal year.

  This ensures a minimum transfer of funds for alternative fuels incentives in the upcoming fiscal year.

Action History

1. April 09, 2026

   Referred to Finance

Sponsors

• Kristin Marcell · Primary
• Eric Davanzo · Cosponsor
• Shelby Labs · Cosponsor
• Michael Stender · Cosponsor
• Valerie S. Gaydos · Cosponsor
• Brenda M. Pugh · Cosponsor
• Natalie Mihalek · Cosponsor
• Jeff Olsommer · Cosponsor
• Thomas H. Kutz · Cosponsor
• Brian Smith · Cosponsor
• Ann Flood · Cosponsor
• Jill N. Cooper · Cosponsor
• David H. Rowe · Cosponsor
• Joe Hamm · Cosponsor
• Eric J. Weaknecht · Cosponsor
• Joe Hogan · Cosponsor
• Milou Mackenzie · Cosponsor
• Tom Jones · Cosponsor
• Aaron Bernstine · Cosponsor
• Andrea C. Verobish · Cosponsor

Subjects