HB 1678 Pennsylvania House · 2025-2026 Regular Session

An Act amending the act of March 4, 1971 (P.L.6, No.2), known as the Tax Reform Code of 1971, in gross receipts tax, further providing for imposition of tax; and providing for additional property tax rebate.

HB 1678 adds a 45-mill tax plus a 5-mill surtax on gross receipts from digital advertising services displayed to users within Pennsylvania. It directly affects digital advertising providers (e.g., companies running banner or search ads) but exempts broadcast and news media entities. The tax applies to revenue from ads shown on digital interfaces (websites, apps) where users are located in Pennsylvania, excluding sales of internet access, telecom hardware, and resale services. The law takes effect for taxable years beginning after December 31, 2025.

Issues: ✓ Budget & Taxes

Bill status passed 3 of 5 stages cleared

Introduction

Jun 2025

Committee Review

Jun 2026

House Passage

Jun 2026

Senate Passage

Governor

Introduced Jun 30, 2025 Last action Jun 18, 2026

Maddy AI version diff · 2 comparisons

What changed between versions

Printer's No. PN3549 → Printer's No. PN3551 · 6 edits

MODERATE

The bill updated its printer's number to reflect the latest version and corrected the list of sponsors to include a new representative while removing one. The most significant substantive change is the addition of a new article establishing an 'Additional Property Tax Rebate' for seniors, creating a restricted account to fund it. The bill also updated the formatting of section headers to use lowercase letters and numbers, and clarified the effective date of the tax amendments.

Scope change

The bill's scope expanded to include a new property tax rebate program for eligible seniors, funded by the digital advertising tax.

FISCAL

Added a new article creating a restricted account within the Property Tax Relief Fund to pay additional rebates to eligible seniors.

ELIGIBILITY

Established a new rebate program for individuals aged 65 or older (or their households) who pay real property taxes on a homestead.

DEFINITION

Added new definitions for 'Claimant', 'Eligible individual', 'Homestead', 'Property Tax Relief Fund', 'Rebate', and 'Real property taxes'.

REQUIREMENT

Added requirements for filing claims, providing proof of age and tax payment, and determining eligibility when multiple household members qualify.

TECHNICAL

Corrected the printer's number from 3549 to 3551 and updated the sponsor list to include Cephas and remove Harkins.