House advances digital-ad tax with amendment to fund property tax relief for seniors

The Pennsylvania House on June 8 advanced House Bill 1678, a measure to apply the state’s existing gross receipts tax to digital advertising revenue, and adopted an amendment directing the revenue toward property tax relief for older homeowners.

Representative Samuelson, the amendment sponsor, told colleagues that targeted digital-ad revenue to Pennsylvanians exceeds $11,000,000,000 annually and that, “Applying the 5% gross receipts tax to digital ad revenue, could be resulting in revenue to the Commonwealth of Pennsylvania of more than $500,000,000 a year.” He proposed amendment a03444 to apply that income to the Property Tax/Rent Rebate program for homeowners 65 and older or living with someone 65.

Opponents questioned whether the amendment as drafted would deliver relief broadly. Representative Heffley said the underlying language could restrict benefits to eight school districts under a prior statute, warning that “only 8 school districts in this Commonwealth receive a windfall of $500,000,000” under the act as drafted. Representative Heffley urged drafting changes so all districts, and more seniors, would benefit.

Majority Leader Bradford defended the amendment and the revenue source, urging colleagues to support a measure that he said would make “the biggest fat cats in the world pay their fair share” to fund property tax relief. Representative Topper, the minority leader, characterized the change as “absolutely germane” and supported floor debate on who should be included.

Other amendments were offered on the floor. Representative Venkat moved to table amendment a03454; that motion to table passed (clerk recorded the ayes as 101 and nays 100), laying the amendment on the table. Representative Kephart offered an amendment to eliminate the gross receipts tax charge on consumers; his amendment failed on a recorded vote (ayes 98, nays 103), with members saying it would undercut the recently adopted property tax relief measure.

The House agreed to the Samuelson amendment during floor consideration and reprinted the bill as amended. The record shows multiple subsequent votes and additional amendments considered on the underlying tax language; the chamber’s clerk recorded the relevant tallies on each recorded question.

Why it matters: Legislators said the measure would update an 1860s-era tax structure to capture modern digital revenue and create a near-term revenue stream to expand property tax relief for seniors. Critics warned that drafting choices could limit where those dollars flow and urged clarifying language to ensure broad-based benefit. The bill, as amended on the floor, proceeds in the legislative process.