PENNSYLVANIA, February 21 - PRINTER'S NO. 341

THE GENERAL ASSEMBLY OF PENNSYLVANIA

SENATE BILL

No.

397

Session of

2023

INTRODUCED BY PHILLIPS-HILL, PENNYCUICK, BARTOLOTTA AND STEFANO,

FEBRUARY 21, 2023

REFERRED TO FINANCE, FEBRUARY 21, 2023

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; providing procedures for the payment,

collection, administration and enforcement thereof; providing

for tax credits in certain cases; conferring powers and

imposing duties upon the Department of Revenue, certain

employers, fiduciaries, individuals, persons, corporations

and other entities; prescribing crimes, offenses and

penalties," in sales and use tax, further providing for

definitions.

The General Assembly finds and declares as follows:

(1) In 2003, the General Assembly and the Governor

expanded the 5% gross receipts tax to mobile

telecommunications service which makes mobile

telecommunications service subject to both the 6% sales tax

and the 5% gross receipts tax.

(2) The main policy argument for imposing the gross

receipts tax on wireless service was to create parity with

landline phone service which was already subject to the tax.

(3) For this reason, the legislation expanding the tax

to wireless telecommunications services also included a

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