New Taxable Items

Since the first introduction of a proposal to replace school property taxes with a broadened Sales and Use Tax (SUT) base, much debate has centered around which goods and services would be taxed.

The newly taxed goods and services listed on the following page have been carefully reviewed and considered using multiple metrics including revenue generation capabilities, economic effects on businesses and consumers, and socio-economic factors. All are a necessary part of the total school property tax replacement package.

Pennsylvania’s current SUT base as compared with those of other states is extremely limited; the expansion proposed in Senate Bill 76 brings Pennsylvania more in line with the SUT taxation methodology of the majority of jurisdictions nationwide.


  • Food (Items not on WIC food list)
  • Personal hygiene products
  • Newspapers
  • Magazines
  • Clothing and footwear (items $50 and higher)
  • Non prescription drugs
  • Airline catering
  • Charges for returnable containers
  • Caskets and burial vaults
  • Flags
  • Hotel permanent resident
  • Liquor or malt beverage purchased from retail dispenser
  • Coin-operated food and beverage vending machines
  • Candy and gum
  • Storage
  • Bad debts
  • UCC filing fees
  • Call center tax credit
  • Rental of films for commercial exhibition
  • Investment metal bullion and investment coins
  • Catalogs and direct mail advertising
  • Construction of memorials
  • Horses
  • Textbooks
  • Commission – SUT collectors (capped at $250/month)


Personal Services

  • Dry cleaning and laundry services
  • Personal care services
  • Funeral parlors, crematories, and death care services
  • All other personal services

Recreation Services

  • Spectator sports admissions (excludes schools)
  • Theater, dance, music and performing arts
  • Amusement and recreation industries
  • Museums, historical sites, zoos and parks

Transportation Services

  • Transit and ground transportation
  • Air transportation
  • Truck transportation
  • Other transportation

Professional Services

  • Legal (except business-to-business, domestic relations matters and criminal defense matters)
  • Architectural, engineering and related services (except business-to-business)
  • Accounting, auditing and bookkeeping services (except business-to-business)
  • Specialized design (except business-to-business)
  • All other professional and technical services (except business-to-business)

Miscellaneous Services

  • Basic TV
  • Veterinary fees (except business-to-business)
  • Finance and insurance
  • Waste management and remediation
  • Recreational parks, camps & campgrounds
  • Custom programming, design and data processing (except business-to-business)
  • Parking lots and garages