A proposed state sales tax holiday if enacted would be the first in a quarter-century for Pennsylvania.

Both the House and Senate have passed legislation providing for a two-week holiday on paying the state’s 6% sales tax on purchases of school supplies from the first Saturday through the third Saturday in August.

The provision is in House Bill 1667, the pending tax code bill. Both chambers have to agree on the same bill version for it to become law. They have passed separate versions of HB1667 so far.

The tax code is part of the state budget package for Fiscal Year 2026-27 now 10 days overdue.

The school sales tax holiday in HB1667 is similar to Senate Bill 717 sponsored by Sen. Lisa Boscola, D-Northampton.

House Republican lawmakers included school supplies in a package of sales tax holiday bills introduced last March. State Rep. Andrew Kuzma, R-Allegheny, sponsored House Bill 1437 to that effect.

Supporters say it will provide relief at the right moment to families and students dealing with inflation and high prices.

“School supplies, regardless of the student’s age, are often a non-negotiable expense heading into the academic year,” said Boscola. “The first couple of weeks in August are when most students are gearing up to head back to school.”

SB717 covers purchases of school and art supplies and instructional materials with a sales price of not more than $50 an item. Personal computers and tablets with a sales price of not more than $1,500 an item will also be exempt.

Last sales tax holiday in 2001

Pennsylvania’s last sales tax holiday came in 2001. This was a temporary holiday. Consumers were exempt from paying the sales tax on personal computers and related equipment for one week in August 2001 and one week in February 2002.

Sponsors said it would boost the computer industry and give consumers relief.

Sales tax holidays are popular despite being economically inefficient and not being able to achieve their goals, said the Tax Foundation, a nonpartisan and nonprofit policy group.

States lose tax revenue during a holiday while consumers don’t get any real relief during the rest of the year when the tax is levied on the item, the Foundation said.

Some 19 states have sales tax holidays, either on a temporary or annual basis. School supplies, groceries, disaster supplies and fishing and hunting supplies are among the items often declared exempt.