This bill amends the Tax Reform Code of 1971 by updating the exclusions from sales and use tax. Specifically, it introduces new provisions that exempt the sale or use of personal computers, tablets, personal digital assistants, peripheral devices, and Internet access devices, along with related service contracts and single-user licensed software, from tax if their sales price does not exceed $1,500 and they are purchased for nonbusiness use during a specified exclusion period. The exclusion period is redefined to run from the first Saturday in August to the third Saturday in August, replacing the previous dates of August 5-12, 2001, and February 17-24, 2002. Additionally, the bill removes certain outdated items from the list of taxable goods, such as hand-held computers and personal digital assistants without Internet access.

Furthermore, the bill introduces a new exclusion for the sale or use of school supplies during the same exclusion period for nonbusiness purposes. It defines "school supplies" to include a wide range of items such as book bags, writing instruments, and educational materials, provided each item has a sales price of $50 or less. The Department of Revenue is also granted the authority to create regulations that may expand the definitions of "art supplies," "instructional materials," and "school supplies" to include additional similar items. This legislation aims to provide tax relief for consumers purchasing technology and educational supplies.

Statutes/Laws affected:
Printer's No. 1908 (Jun 11, 2025): P.L.6, No.2