PRINTER'S NO. 1092
THE GENERAL ASSEMBLY OF PENNSYLVANIA
HOUSE BILL
No. 1005
Session of
2025
INTRODUCED BY KERWIN, CUTLER, GREINER, HAMM, JAMES, NEILSON AND
PICKETT, MARCH 24, 2025
REFERRED TO COMMITTEE ON FINANCE, MARCH 24, 2025
AN ACT
1 Repealing the act of July 13, 1953 (P.L.377, No.85), entitled
2 "An act to provide revenue by imposing a tax on the use and
3 storage of tangible personal property within the
4 Commonwealth; providing for the assessment, collection and
5 lien of the tax; imposing duties on prothonotaries; requiring
6 sellers maintaining a place of business in this Commonwealth
7 to register, make returns and collect the tax; prescribing
8 penalties; and providing for the use of the proceeds of such
9 tax for public school purposes."
10 The General Assembly of the Commonwealth of Pennsylvania
11 hereby enacts as follows:
12 Section 1. The act of July 13, 1953 (P.L.377, No.85), known
13 as the Use and Storage Tax Act, is repealed:
14 [AN ACT
15 To provide revenue by imposing a tax on the use and storage of
16 tangible personal property within the Commonwealth; providing
17 for the assessment, collection and lien of the tax; imposing
18 duties on prothonotaries; requiring sellers maintaining a
19 place of business in this Commonwealth to register, make
20 returns and collect the tax; prescribing penalties; and
21 providing for the use of the proceeds of such tax for public
 1 school purposes.
2 The General Assembly of the Commonwealth of Pennsylvania
3 hereby enacts as follows:
4 ARTICLE I
5 SHORT TITLE AND DEFINITIONS
6 Section 101. Short Title.--This act shall be known and may
7 be cited as the "Use and Storage Tax Act."
8 Section 102. Definitions.--The following words, terms and
9 phrases when used in this act shall have the meaning ascribed to
10 them in this section, except where the context clearly indicates
11 a different meaning:
12 (1) "Department." The Department of Revenue of this
13 Commonwealth.
14 (2) "Person." Any natural person, firm, partnership,
15 association, corporation, fiduciary, or other entity. Whenever
16 used in any provision of this act which prescribes or imposes
17 fine or imprisonment or both, the term "person," as applied to a
18 firm, partnership or association, shall include the members
19 thereof, and, as applied to a corporation, the officers thereof:
20 Provided, That a firm, partnership, association or a corporation
21 may be subjected as an entity to the payment of a fine.
22 (3) "Storage." Any keeping or retention in this
23 Commonwealth for use or other consumption in this Commonwealth
24 for any purpose, excepting as hereinafter provided.
25 (4) "Use." The exercise of any right or power incidental to
26 the ownership of tangible personal property.
27 The term "storage, use or other consumption" does not apply
28 to:
29 (a) Any tangible personal property used for the purpose of
30 resale in its original form.
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 1 (b) Any tangible personal property acquired through an
2 isolated sale from one not a seller.
3 (c) Any tangible personal property acquired through an
4 isolated purchase from one who, though a seller, is not such a
5 seller with respect to the article purchased, but a use shall be
6 presumed in the case of all purchases from sellers.
7 (d) Cigarettes.
8 (e) Gasoline and other motor fuels.
9 (f) Utility services, the gross receipts from which are
10 taxed by the Commonwealth.
11 (g) Any tangible personal property acquired by the
12 Commonwealth or any of its agencies or political subdivisions or
13 by authorities created by or pursuant to law.
14 (h) Any tangible personal property acquired by the United
15 States or any of its agencies.
16 (i) Any tangible personal property acquired outside this
17 Commonwealth, the taxing of the storage, use or other
18 consumption of which is prohibited by the Constitution of the
19 United States.
20 (j) Newspapers, magazines and other periodicals.
21 (k) Medicine on prescription, crutches, wheelchairs for the
22 use of cripples and invalids, and when designed to be worn on
23 the person of the purchaser or user, artificial limbs,
24 artificial eyes and artificial hearing devices, false teeth
25 purchased from a dentist and the materials used by a dentist in
26 dental treatment, eyeglasses when especially designed or
27 prescribed by an ophthalmologist, oculist or optometrist for the
28 personal use of the owner or purchaser, and artificial braces
29 and supports designed solely for the use of crippled persons.
30 (l) Bakery products, milk, groceries and meat as food
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 1 products for human consumption. For the purposes of this clause,
2 (i) "milk" shall mean raw milk products from domestic animals or
3 such milk when processed or canned; (ii) "groceries" shall mean
4 all food products and all food ingredients for human consumption
5 or for use in the preparation thereof for human consumption,
6 ordinarily sold in grocery stores, except candies, confections,
7 soft drinks, tobacco or tobacco products; (iii) "meat" shall
8 include the flesh of animals, fish, sea food, poultry and game.
9 (m) Clothing and shoes, but not jewelry or any other object
10 not worn primarily to cover the human body against nakedness or
11 cold.
12 (n) Tangible personal property (i) which is to be used in
13 fabricating, compounding or manufacturing tangible personal
14 property or in producing public utility service to be sold
15 ultimately at retail, or (ii) which is to be used in the process
16 of farming, agriculture or horticulture and which, in either
17 event, becomes an ingredient or component part of the
18 fabricated, compounded or manufactured tangible personal
19 property or public utility product or of the product of farming,
20 agriculture or horticulture, or is consumed in the process of
21 fabrication, compounding, manufacturing or producing or in the
22 process of farming, agriculture or horticulture, or (iii) which
23 is to be used in the production or delivery of public utility
24 service.
25 (o) The performance of personal service.
26 (p) Any tangible personal property upon which a tax is
27 imposed under the provisions of the Consumers Sales Tax Act.
28 (q) Tangible personal property intended for incorporation
29 and incorporated into a building, road, street, bridge, or other
30 structure, provided such property is so incorporated pursuant to
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 1 a contract entered into prior to the effective date of this act,
2 and provided further that the person so incorporating such
3 property submit to the department proof of the facts in such
4 form as the department may require.
5 (5) "Purchase." Acquiring tangible personal property for a
6 consideration, whether the transaction was effected by a
7 transfer of title or of possession or of both, or a license to
8 use or consume, whether such transfer shall have been absolute
9 or conditional and by whatsoever means the same shall have been
10 effected and whether such consideration be a price or rental in
11 money or by way of exchange or barter. "Purchase" shall include
12 production even though the article produced is used, stored or
13 consumed by the producer thereof.
14 (6) "Seller." The person from whom a purchase is made and
15 every person engaged in this Commonwealth or elsewhere in the
16 business of selling tangible personal property for storage, use
17 or other consumption in this Commonwealth. When, in the opinion
18 of the department, it is necessary for the efficient
19 administration of this act to regard any salesman,
20 representative, peddler or canvasser as the agent of a dealer,
21 distributor, supervisor or employer under whom he operates or
22 from whom he obtains tangible personal property sold by him for
23 storage, use or other consumption in this Commonwealth,
24 irrespective of whether or not he is making such sales on his
25 own behalf or on behalf of such dealer, distributor, supervisor
26 or employer, the department may so regard him and may regard
27 such dealer, distributor, supervisor or employer as the "seller"
28 for the purpose of this act.
29 (7) "Seller Maintaining a Place of Business in This
30 Commonwealth." Any seller having or maintaining within this
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 1 Commonwealth, directly or through a subsidiary, an office,
2 distribution house, saleshouse, warehouse, or other place of
3 business, or any agent operating wholly within this Commonwealth
4 under the authority of the seller or its subsidiary,
5 irrespective of whether such place of business or agent is
6 located permanently or temporarily in this Commonwealth or
7 whether such seller or subsidiary is authorized to do business
8 within this Commonwealth.
9 (8) "Consumer." The person who has purchased tangible
10 personal property for storage, use or other consumption in this
11 Commonwealth.
12 (9) "Price." The amount paid in money, credits, property or
13 other consideration for purchases, without deduction on account
14 of the cost of property purchased, amounts paid for interest,
15 discounts, losses or any other expenses or burdens. Credit
16 actually given or refund actually paid for goods returned may be
17 deducted.
18 (10) "Tangible Personal Property." Corporeal personal
19 property including, but not restricted to, goods, wares and
20 merchandise. The term "tangible personal property" does not
21 include money, deposits in banks, shares of stock, bonds, notes,
22 credits, or evidences of an interest in property or evidences of
23 debt.
24 (11) "Tax." Any tax, interest or penalty imposed or levied
25 under the provisions of this act.
26 ARTICLE II
27 IMPOSITION AND COLLECTION OF TAX
28 Section 201. Imposition.--A tax is hereby levied on the
29 storage, use or other consumption in this Commonwealth of
30 tangible personal property purchased for storage, use or other
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 1 consumption in this Commonwealth.
2 Section 202. Amount of Tax.--(a) The rate of tax shall be
3 one per centum (1%) of the price of each purchase of tangible
4 personal property purchased for storage, use or other
5 consumption in this Commonwealth.
6 (b) As to any tangible personal property purchased for
7 storage, use or other consumption in this Commonwealth, the tax
8 shall be computed as follows:
9 (1) Where its price is ten cents or less, no tax shall be
10 collected.
11 (2) Where its price is from eleven cents to one dollar, both
12 inclusive, the tax shall be one cent.
13 (3) Where its price is in excess of one dollar, the tax on
14 each additional dollar or fraction thereof shall be one cent.
15 (c) If any person who causes tangible personal property to
16 be brought into this Commonwealth has already paid a tax in
17 another state in respect to the sale or use of such property or
18 an occupation tax in respect thereto in an amount less than the
19 tax imposed by this act, the provisions of this act shall apply,
20 but at a rate measured by the difference only between the rate
21 herein fixed and the rate by which the previous tax on the sale
22 or use or occupation tax was computed.
23 Section 203. Payment.--Each consumer storing, using or
24 otherwise consuming in this Commonwealth tangible personal
25 property purchased for such purpose or purposes shall be liable
26 for the tax imposed by this act and such liability shall not be
27 extinguished until the tax has been paid to this Commonwealth.
28 It shall be presumed that tangible personal property
29 purchased on or after the effective date of this act by any
30 person for delivery in this Commonwealth is purchased for
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 1 storage, use or other consumption in this Commonwealth.
2 Section 204. Collection by Sellers Maintaining Place of
3 Business in Commonwealth.--Every seller maintaining a place of
4 business in this Commonwealth and making sales of tangible
5 personal property for storage, use or other consumption in this
6 Commonwealth, if not otherwise exempted, shall, at the time of
7 making the sales or, if the storage, use or consumption is not
8 then taxable hereunder, at the time the storage, use or other
9 consumption becomes taxable, collect the tax from the consumer.
10 Section 205. Seller's Registration.--Every seller
11 maintaining a place of business in this Commonwealth selling
12 tangible personal property for storage, use or consumption in
13 this Commonwealth shall register with the department and give
14 the name and address of all agents operating in this
15 Commonwealth, the location of all distribution or saleshouses or
16 offices or other places of business in this Commonwealth and
17 such other information as the department may require.
18 ARTICLE III
19 RETURNS AND PAYMENT
20 Section 301. Monthly Returns and Payment.--(a) The taxes
21 imposed by this act shall be due and payable in monthly
22 installments on or before the twentieth day of the calendar
23 month succeeding the month during which the purchase of tangible
24 personal property on the storage, use or other consumption of
25 which the tax is being paid is made.
26 (b) Each taxpayer or seller maintaining a place of business
27 in this Commonwealth shall make out and sign a return for the
28 preceding calendar month. Such return shall be mailed to the
29 department in time so that it will reach the department, in the
30 ordinary course of the mails, on or before the twentieth day of
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 1 the month succeeding the month during which the purchase of
2 tangible personal property on the storage, use or other
3 consumption of which the tax is being paid is made. The return
4 shall be on a form prescribed by the department.
5 (c) Each such return shall show:
6 (1) The price of each such purchase of tangible personal
7 property by such person during such preceding monthly period,
8 the storage, use or consumption of which is subject to tax;
9 (2) The amount of tax due;
10 (3) Such other information as the department may deem
11 necessary for the proper administration of this act.
12 (d) Any such return may be signed by a duly authorized agent
13 of the taxpayer with the same effect as if signed by the
14 taxpayer himself. Any person making a false return shall be
15 guilty of perjury to the same extent as though the return had
16 been sworn to. A remittance for the amount of the tax shall
17 accompany each return.
18 Section 302. Other Times for Returns and Payment.--The
19 department may, upon written request, authorize a taxpayer whose
20 books and records are not kept on a calendar month basis to file
21 returns at other times than those specified in the preceding
22 section and in lieu of such returns. Except as to the time of
23 filing and the period covered, all the provisions as to monthly
24 returns made by section three hundred one shall be applicable to
25 returns made under this section and a remittance for the tax
26 shall accompany any return made under this section.
27 ARTICLE IV
28 PROCEDURE
29 Section 401. Department of Revenue to Administer.--The
30 Department of Revenue shall administer and enforce this act and
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 1 collect the tax hereby imposed.
2 Section 402. Examination of Returns; Assessment of Tax
3 Credits.--(a) As soon as practicable after any return is filed,
4 the department shall examine it. If the return shows a greater
5 tax due than the amount of the remittance sent with such return,
6 the department shall forthwith assess the difference. Such
7 difference shall be paid to the department within ten days after
8 notice of its assessment. If so paid, there shall be no interest
9 or penalty; if not so paid, there shall be added to such amount
10 five per centum thereof and, in addition, interest at the rate
11 of one-half of one per centum per month for each month or
12 fraction thereof from the date of such notice to the date of
13 payment. No taxpayer shall have any right of appeal from such an
14 assessment.
15 (b) If the department determines that any return or returns
16 of any taxpayer understates the amount of tax due, the
17 department shall assess the proper amount and shall determine
18 the difference between the amount of tax shown in the return and
19 the amount assessed, such difference being hereafter sometimes
20 referred to as the "deficiency." Such deficiency shall be paid
21 to the department within ten days after a notice of the
22 assessment thereof shall be mailed to the taxpayer by the