Budget & Taxes

in committee · Pennsylvania · House May 6, 2025

HB 1414: An Act amending the act of March 4, 1971 (P.L.6, No.2), known as the Tax Reform Code of 1971, in corporate net income tax, further providing for imposition of tax.

HB 1414 amends Pennsylvania's corporate income tax rates under the 1971 Tax Reform Code. It lowers the annual corporate tax rate for taxable years starting in 2026 (from 7.49% to 6.99%), 2027 (from 6.99% to 5.99%), and 2028 onward (from 6.49% to 4.99%). This directly affects corporations operating in Pennsylvania that pay state corporate income tax. The bill makes these rate changes effective immediately upon enactment.

Topics ✗ Budget & TaxesOpposes Budget & TaxesLowers corporate tax rates (7.49%→4.99%), reducing state revenue and weakening tax base per bill's explicit rate reductions.95% confidence

Sub-Topics Business Taxes Income Tax

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in committee · Pennsylvania · Senate Mar 21, 2025

SB 499: A Joint Resolution proposing an amendment to the Constitution of the Commonwealth of Pennsylvania, prohibiting implementation of laws relating to unfunded education mandates.

SB 499 proposes a constitutional amendment requiring Pennsylvania to fully fund all new education programs before they can be implemented. It would prevent the state from enforcing any new school-related laws or regulations that lack dedicated funding, ensuring programs like curriculum changes or facility upgrades have allocated resources upfront. This affects school districts, state education agencies, and the General Assembly when creating or renewing education initiatives. The amendment must pass both legislative chambers and be approved by voters to take effect.

Topics ✓ Budget & TaxesSupports Budget & TaxesRequires full funding for new education programs before implementation, preventing unfunded mandates and promoting fiscal responsibility in budget allocation.95% confidence ✓ EducationSupports EducationRequires full funding before new education mandates take effect, preventing unfunded programs and protecting school resources.95% confidence

Sub-Topics Curriculum School Funding

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in committee · Pennsylvania · House Apr 22, 2025

HB 1287: An Act amending the act of March 4, 1971 (P.L.6, No.2), known as the Tax Reform Code of 1971, in personal income tax, further providing for special tax provisions for poverty.

This bill, HB 1287, updates Pennsylvania's personal income tax provisions for low-income individuals and families. It increases the income threshold for full tax forgiveness or a refund from $6,500 to $10,000 for individuals and from $13,000 to $20,000 for married couples. The bill also introduces an annual cost-of-living adjustment for these poverty income amounts, based on the regional Consumer Price Index. This mechanism ensures that the eligibility thresholds for tax relief can increase over time, reflecting changes in the cost of living.

Topics ✓ Budget & TaxesSupports Budget & TaxesIncreases tax forgiveness thresholds for low-income individuals, providing direct tax relief per poverty provisions in the Tax Reform Code.95% confidence

Sub-Topics Income Tax Tax Credits

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in committee · Pennsylvania · Senate May 22, 2025

SB 775: A Joint Resolution proposing an amendment to the Constitution of the Commonwealth of Pennsylvania, further providing for exemptions and special provisions.

SB 775 proposes a constitutional amendment to Pennsylvania's Constitution (Article VIII, Section 2(b)) that would allow the state legislature to create new tax exemption categories and special provisions. It specifically enables the General Assembly to establish standards for tax exemptions for agricultural/forest land, vulnerable groups (like seniors or disabled individuals), and long-term homeowners in renovated neighborhoods. Key mechanisms include temporary tax breaks for property improvements or new residential construction (up to two years), homestead exclusions (capped at 100% of assessed value), and requirements that the state reimburse local governments for revenue losses from new exemptions. This amendment must be approved by voters after two legislative passages, as it would change the state constitution.

Topics ✓ Budget & TaxesSupports Budget & TaxesProposes tax exemptions for vulnerable groups (seniors/disabled) and homeowners, providing targeted tax relief per constitutional amendment language.90% confidence

Sub-Topics Property Tax Tax Incentives

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in committee · Pennsylvania · Senate May 22, 2025

SB 773: An Act amending the act of April 9, 1929 (P.L.343, No.176), known as The Fiscal Code, in cigarette sales and licensing, further providing for definitions and providing for presumed cost of doing business by retailer.

SB 773 amends Pennsylvania's cigarette tax rules by establishing a default percentage for retailers' operating costs, directly affecting cigarette sellers. Starting July 2026, this default rate will increase annually - from 9% (2026), to 10% (2027), 11% (2028), and 12% (2029 and beyond). Retailers can use actual lower costs for up to 12 months but must revert to the default rate afterward if they don’t provide proof. The bill changes how retailers calculate taxes on cigarette sales, requiring the new percentages to be applied to the basic cost of cigarettes.

Topics ✓ Budget & TaxesSupports Budget & TaxesIncreases default cigarette tax rate from 9% (2026) to 12% (2029+), boosting state revenue through higher retailer tax calculations under Fiscal Code amendments.95% confidence

Sub-Topics Sales Tax

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in committee · Pennsylvania · House Feb 5, 2025

HB 162: An Act amending Title 11 (Cities) of the Pennsylvania Consolidated Statutes, in taxation, further providing for tax levies.

This bill allows Pennsylvania cities to levy an annual property tax of up to one-tenth of a cent (0.5 mill) specifically to fund local ambulance, rescue, and emergency services. Cities may use up to half the revenue from this tax for staff salaries and benefits, with council approval required to exceed this limit (though a resolution can waive the cap). If a city proposes a tax rate above 0.5 mill, it must submit the question to voters at the next municipal election occurring at least 60 days after the proposal. The law directly affects cities seeking to finance emergency services through property tax without voter approval for rates at or below 0.5 mill.

Topics ✓ Budget & TaxesSupports Budget & TaxesCreates new property tax (0.5 mill) specifically to fund emergency services, directly increasing dedicated public safety funding through targeted taxation.90% confidence

Sub-Topics Property Tax

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in committee · Pennsylvania · House Jun 2, 2025

HB 1537: An Act amending the act of March 4, 1971 (P.L.6, No.2), known as the Tax Reform Code of 1971, in personal income tax, further providing for definitions.

HB 1537 amends Pennsylvania's Tax Reform Code of 1971 to clarify the definition of "compensation" for personal income tax purposes. The bill explicitly includes certain deferred compensation (like 409A plan distributions) while excluding specific payments such as disability benefits, retirement payments, public assistance, and employer-provided health benefits. This definition affects how Pennsylvania taxes income from employment, ensuring consistent application of tax rules for taxpayers and employers. The change aligns Pennsylvania's tax code with specific federal provisions but does not alter tax rates or create new taxes. The bill is currently referred to the Finance committee.

Topics ✓ Budget & TaxesSupports Budget & TaxesClarifies tax definitions for consistent application under PA's Tax Reform Code, promoting fiscal responsibility without altering tax rates or funding levels.95% confidence

Sub-Topics Income Tax

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in committee · Pennsylvania · House May 12, 2025

HB 1437: 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.

HB 1437 creates a temporary sales tax exemption in Pennsylvania for specific personal items during an annual window. It excludes clothing accessories, footwear, school supplies, computers/software, and certain bedding items from sales tax when purchased by individuals for nonbusiness use during the first Friday in August through the following Sunday. The Department of Revenue must post a list of qualifying items online by July 10 each year. This policy change directly affects individual consumers shopping for these items during the defined exclusion period.

Topics ✓ Budget & TaxesSupports Budget & TaxesCreates temporary sales tax exemption for essential consumer items (clothing, school supplies, computers), providing direct tax relief to individuals during back-to-school season.95% confidence ✓ EducationSupports EducationExempts school supplies and computers/software from sales tax, reducing costs for families purchasing educational items and improving access to learning materials.85% confidence ✓ TechnologySupports TechnologyBill explicitly exempts computers/software from sales tax, making technology more affordable for individual consumers during a specific window, directly supporting technology adoption.80% confidence

Sub-Topics Sales Tax Tax Incentives

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in committee · Pennsylvania · Senate Jun 3, 2025

SB 821: An Act amending the act of March 4, 1971 (P.L.6, No.2), known as the Tax Reform Code of 1971, providing for National Guard service tax credit.

SB 821 creates a $500 tax credit for Pennsylvania National Guard members who meet specific eligibility criteria. To qualify, a taxpayer must be a Pennsylvania resident with at least two full years of active service by December 31 of the taxable year, and remain an active member when filing their tax return. The credit reduces taxes owed under Pennsylvania's income tax code (Article III) for taxable years beginning after December 31, 2026, and cannot be carried over, refunded, or sold. It requires self-certification via annual tax returns, with the Department of Revenue reporting on usage annually starting in 2027. This policy directly benefits qualifying National Guard members by lowering their state tax liability.

Topics ✓ Budget & TaxesSupports Budget & TaxesCreates $500 tax credit for National Guard members, reducing tax liability under PA income tax code, aligning with tax relief support for eligible taxpayers.90% confidence ✓ VeteransSupports VeteransCreates $500 tax credit for PA National Guard members with 2+ years service, directly providing financial benefit to veterans through tax reduction.95% confidence

Sub-Topics Income Tax Tax Credits National Guard & Reserve

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in committee · Pennsylvania · Senate Jun 3, 2025

SB 789: An Act amending the act of April 9, 1929 (P.L.177, No.175), known as The Administrative Code of 1929, in Commonwealth budget procedures, providing for general appropriation bill.

SB 789 amends Pennsylvania's 1929 Administrative Code to address budget deadlines. If the state's general appropriation bill isn't passed by June 30, the bill requires the Commonwealth to maintain state funding at 80% of the previous fiscal year's approved amounts. This provision directly affects Pennsylvania's state budget operations and ensures continued funding for state programs during budget delays. The rule takes effect 60 days after enactment, providing a concrete safeguard for ongoing government services.

Topics ✓ Budget & TaxesSupports Budget & TaxesEnsures 80% funding continuity during budget delays, preventing defunding of state programs per bill's 80% funding requirement for ongoing operations.95% confidence

Sub-Topics Appropriations State Budget

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