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 (not including items on the Women Infant and Children list)
  • Candy and gum
  • Clothing and footwear over $50 per garment
  • Non-prescription drugs
  • Newspapers and magazines
  • Personal hygiene products, including diapers
  • Religious publications
  • Caskets and burial vaults
  • Flags
  • Textbooks
  • Motion picture rentals for commercial exhibition
  • Direct mail/mail order catalogs and magazine subscriptions
  • Horses
  • Historical markers and memorials
  • Computer software
  • Used prebuilt housing
  • Airline catering
  • Uniform Commercial Code filing fees
  • Metal bullion and investment coins
  • Alcohol served at drinking establishments


  • Intrastate transportation of persons utilizing air, rail, water and taxi services, including public transportation
  • Towing services
  • Sightseeing and tour buses
  • Movie theater and drive-in admission
  • Basic and premium cable subscription
  • Investment advice
  • Legal services (except business-to-business, family and criminal law)
  • Accounting, auditing and bookkeeping services (except business-to-business)
  • Architectural and engineering services (except business-to-business)
  • Specialized design services (except business-to-business)
  • Advertising and public relations (except business-to-business)
  • Services for buildings and dwellings (except business-to-business)
  • Scientific, environmental and technical consulting services (except business-to-business)
  • Information services (except business-to-business)
  • Office administrative services (except business-to-business)
  • Facilities support services (except business-to-business)
  • Custom programming, design and data processing services (except business-to-business)
  • Veterinary services (except business-to-business)
  • Parking and garage services (except business-to-business)
  • Employment services
  • Waste management
  • Non-tuition and non-housing-related charges imposed by junior colleges, colleges, universities, and professional schools
  • For-profit ambulatory health care, nursing care facilities, substance abuse facilities, retirement communities
  • Daycare services
  • Spectator sports, theater, dance and musical admissions (excluding schools, non-profit and charitable organizations)
  • Museum, zoos and amusement park admission
  • Recreational parks and campgrounds
  • Haircuts and salon services
  • Funeral home services
  • Dry cleaning and laundry services
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