1Amending the act of March 4, 1971 (P.L.6, No.2), entitled "An
2act relating to tax reform and State taxation by codifying
3and enumerating certain subjects of taxation and imposing
4taxes thereon; providing procedures for the payment,
5collection, administration and enforcement thereof; providing
6for tax credits in certain cases; conferring powers and
7imposing duties upon the Department of Revenue, certain
8employers, fiduciaries, individuals, persons, corporations
9and other entities; prescribing crimes, offenses and
10penalties," in tax for education, further providing for
11exclusions from tax.

12The General Assembly of the Commonwealth of Pennsylvania
13hereby enacts as follows:

14Section 1. Section 204(58) of the act of March 4, 1971
15(P.L.6, No.2), known as the Tax Reform Code of 1971, amended
16June 22, 2001 (P.L.353, No.23), is amended and the section is
17amended by adding a clause to read:

18Section 204. Exclusions from Tax.--The tax imposed by
19section 202 shall not be imposed upon any of the following:

20* * *

21(58) The sale at retail or use of a personal computer, a
 

1tablet, a personal digital assistant, a peripheral device or an
2Internet access device, or a service contract or single-user
3licensed software purchased in conjunction with a personal
4computer, tablet, personal digital assistant, peripheral device
5or Internet access device, with a sales price of not more than 
6one thousand dollars ($1,000), during the exclusion period by an
7individual purchaser for nonbusiness use. The exclusion does not
8include a sale at retail or use of, leasing, rental or repair of
9a personal computer, tablet, personal digital assistant,
10peripheral device or Internet access device; mainframe
11computers; network servers; local area network hubs; routers and
12network cabling; network operating systems; multiple-user
13licensed software; minicomputers; [hand-held computers; personal
14digital assistants without Internet access;] hardware word
15processors; graphical calculators; video game consoles;
16telephones; digital cameras; pagers; compact discs encoded with
17music or movies; and digital versatile discs encoded with music
18or movies. For purposes of this clause, the phrase "exclusion
19period" means the period of time from [August 5, 2001, to and
20including August 12, 2001, and from February 17, 2002, to and
21including February 24, 2002.] the second Friday in August to and 
22including the following Sunday. For purposes of this clause,
23"purchaser" means an individual who places an order and pays the
24purchase price by cash or credit during the exclusion period
25even if delivery takes place after the exclusion period.

26* * *

27(70) The sale at retail or use of school supplies during the
28exclusion period for nonbusiness purposes. For purposes of this
29clause, the phrase "exclusion period" means the second Friday in
30August to and including the following Sunday. For purposes of

1this clause, "school supplies" means items such as book bags,
2pens, pencils, pencil sharpeners, markers, highlighters,
3erasers, crayons, blackboard chalk, notebooks, binders, folders,
4paper, index cards, glue, tape, rulers, scissors, staplers,
5staples, paper clips, printer ink, calculators, compasses,
6protractors, lunch boxes, school supply boxes, personal
7organizers, art supplies, clipboards, dry erase markers, sticky
8notes, bulletin board paper, educational posters and games and
9instructional materials with a sales price of fifty dollars
10($50) or less per item. For purposes of this clause, "art
11supplies" means clay and glazes, paints, paintbrushes, sketch
12and drawing pads and watercolors. For the purposes of this
13clause, "instructional materials" means reference books,
14reference maps and globes, textbooks and workbooks. The
15department may promulgate regulations to include other similar
16items in this paragraph.

17Section 2. This act shall take effect immediately.