1Amending the act of August 9, 1955 (P.L.323, No.130), entitled,
2as amended, "An act relating to counties of the first, third,
3fourth, fifth, sixth, seventh and eighth classes; amending,
4revising, consolidating and changing the laws relating
5thereto; relating to imposition of excise taxes by counties,
6including authorizing imposition of an excise tax on the
7rental of motor vehicles by counties of the first class; and
8providing for regional renaissance initiatives," in fiscal
9affairs, repealing provisions relating to authorization of
10excise tax and authorization of hotel tax; and providing for
11hotel room rental tax in third through eighth class counties
12and for certification of recognized tourist promotion
13agencies.

14The General Assembly of the Commonwealth of Pennsylvania
15hereby enacts as follows:

16Section 1. Sections 1770.2 and 1770.6 of the act of August
179, 1955 (P.L.323, No.130), known as The County Code, amended or
18added December 22, 2000 (P.L.1019, No.142) and July 5, 2005
19(P.L.38, No.12), are repealed:

20[Section 1770.2. Authorization of Excise Tax.--(a) The
21county commissioners of any county which has a recognized
22tourist promotion agency designated to act within the county may

1impose an excise tax not to exceed three per centum of the
2consideration received by each operator of a hotel within the
3county from each transaction of renting a room or rooms to
4transients. The tax shall be collected by the operator from the
5patron of the room or rooms and paid over to the county as
6herein provided.

7(b) The county commissioners may by ordinance impose
8requirements for keeping of records, the filing of tax returns
9and the time and manner of collection and payment of tax. The
10county commissioners may also impose by ordinance penalties and
11interest for failure to comply with recordkeeping, filing,
12collection and payment requirements.

13(c) The treasurer of each county electing to impose the tax
14authorized under this section shall collect the tax and deposit
15the revenues received from the tax in a special fund established
16for that purpose. After deducting from the fund any direct or
17indirect costs attributable to collection of the tax, the county
18shall distribute to the recognized tourist promotion agency
19designated to act within the county all revenues received from
20the tax not later than sixty days after receipt of the tax
21revenues. The revenues from the special fund shall be used by
22the recognized tourist promotion agency for any or all of the
23following purposes:

24(1) Convention promotion.

25(2) Marketing the area served by the agency as a leisure
26travel destination.

27(3) Marketing the area served by the agency as a business
28travel destination.

29(4) Using all appropriate marketing tools to accomplish
30these purposes, including, but not limited to, advertising,

1publicity, publications, direct marketing, direct sales and
2participation in industry trade shows.

3(5) Projects or programs that are directly and substantially
4related to tourism within the county, augment and do not unduly
5compete with private sector tourism efforts and improve and
6expand the county as a destination market.

7(6) Any other tourism marketing or promotion program deemed
8necessary by the recognized tourist promotion agency.

9(d) The tax year for a tax imposed under this section shall
10run concurrently with the calendar year.

11(e) An audited report on the income and expenditures
12incurred by a recognized tourist promotion agency receiving any
13revenues from the tax authorized under this section shall be
14submitted annually by the recognized tourist promotion agency to
15the county commissioners.

16(e.1) Notwithstanding any other provision of subsection (b)
17or any other provision of law to the contrary, in counties of
18the third class having a population under the 1990 Federal
19Decennial Census in excess of 415,000 residents but less than
20500,000 residents, a penalty of one and one-half per centum per
21month shall be imposed for failure to timely remit the tax
22authorized by this section. In addition to other remedies
23available for collection of debts, the county may also file a
24lien upon the hotel in the name of and for the use of the county
25as provided by law for municipal claims.

26(f) As used in this section, the following words and phrases
27shall have the meanings given to them in this subsection:

28"Consideration." Receipts, fees, charges, rentals, leases,
29cash, credits, property of any kind or nature, or other payment
30received by operators in exchange for or in consideration of the

1use or occupancy by a transient of a room or rooms in a hotel
2for any temporary period.

3"County." Any county which is on the effective date of this
4act a county of the third class having a population under the
51990 Federal Decennial Census in excess of 337,000 residents,
6but less than 341,000 residents, or a county of the third class
7having a population under the 1990 Federal Decennial Census in
8excess of 374,000 residents, but less than 380,000 residents, or
9a county of the third class having a population under the 1990
10Federal Decennial Census in excess of 415,000 residents, but
11less than 500,000 residents, or a county of the fourth class
12having a population under the 1990 Federal Decennial Census in
13excess of 159,000 residents, but less than 175,000 residents, or
14a county of the fifth class having a population under the 1990
15Federal Decennial Census in excess of 123,000 residents, or a
16county of the fifth class having a population under the 1990
17Federal Decennial Census in excess of 117,000 residents, but
18less than 121,050 residents, or a county of the sixth class
19having a population under the 1990 Federal Decennial Census in
20excess of 87,000 residents.

21"Hotel." A hotel, motel, inn, guest house or other structure
22which holds itself out by any means, including advertising,
23license, registration with an innkeepers' group, convention
24listing association, travel publication or similar association
25or with a government agency, as being available to provide
26overnight lodging or use of facility space for consideration to
27persons seeking temporary accommodation; any place which
28advertises to the public at large or any segment thereof that it
29will provide beds, sanitary facilities or other space for a
30temporary period to members of the public at large; or any place

1recognized as a hostelry. The term does not include any portion
2of a facility that is devoted to persons who have an established
3permanent residence or a college or university student residence
4hall or any private campground, or any cabins, public
5campgrounds or other facilities located on State land.

6"Occupancy." The use or possession or the right to the use
7or possession by any person other than a permanent resident of
8any room in a hotel for any purpose or the right to the use or
9possession of the furnishings or to the services accompanying
10the use and possession of the room.

11"Operator." An individual, partnership, nonprofit or profit-
12making association or corporation or other person or group of
13persons who maintain, operate, manage, own, have custody of or
14otherwise possess the right to rent or lease overnight
15accommodations in a hotel to the public for consideration.

16"Patron." A person who pays the consideration for the
17occupancy of a room or rooms in a hotel.

18"Permanent resident." A person who has occupied or has the
19right to occupancy of a room or rooms in a hotel as a patron or
20otherwise for a period exceeding thirty consecutive days.

21"Recognized tourist promotion agency." The nonprofit
22corporation, organization, association or agency which is
23engaged in planning and promoting programs designed to stimulate
24and increase the volume of tourist, visitor and vacation
25business within counties served by the agency as that term is
26defined in the act of April 28, 1961 (P.L.111, No.50), known as
27the "Tourist Promotion Law."

28"Room." A space in a hotel set aside for use and occupancy
29by patrons, or otherwise, for consideration, having at least one
30bed or other sleeping accommodation in a room or group of rooms.

1"Transaction." The activity involving the obtaining by a
2transient or patron of the use or occupancy of a hotel room from
3which consideration is payable to the operator under an express
4or an implied contract.

5"Transient." An individual who obtains accommodation in a
6hotel by means of registering at the facility for the temporary
7occupancy of a room for the personal use of the individual by
8paying a fee to the operator.

9Section 1770.6. Authorization of Hotel Tax.--(a) Except as
10provided for in section 1770.7, the county commissioners of any
11county may impose an excise tax on the consideration received by
12each operator of a hotel, as defined by this section, from each
13transaction of renting a room or rooms to accommodate
14transients. If levied, the tax shall be collected by the
15operator from the patron of the room and paid over to the county
16and shall be known as the hotel room rental tax.

17(b) The rate of the tax imposed under this section shall not
18exceed three per centum.

19(c) The treasurer of each county electing to impose the tax
20authorized under this section shall collect the tax and deposit
21the revenues received from the tax in a special fund established
22for that purpose. Subsequent to the deduction for administrative
23costs established in subsection (e), the county shall distribute
24to the recognized tourist promotion agency all revenues received
25from the tax not later than sixty days after receipt of the tax
26revenues. The revenues from the special fund shall be used by
27the recognized tourist promotion agency for any or all of the
28following purposes:

29(1) Convention promotion.

30(2) Marketing the area served by the agency as a leisure

1travel destination.

2(3) Marketing the area served by the agency as a business
3travel destination.

4(4) Using all appropriate marketing tools to accomplish
5these purposes, including, but not limited to, advertising,
6publicity, publications, direct marketing, direct sales and
7participation in industry trade shows.

8(5) Projects or programs that are directly and substantially
9related to tourism within the county, augment and do not unduly
10compete with private sector tourism efforts and improve and
11expand the county as a destination market.

12(6) Any other tourism marketing or promotion program deemed
13necessary by the recognized tourist promotion agency.

14(d) Each tax year for any tax imposed hereunder shall run
15concurrently with the county's fiscal year.

16(d.1) An audited report on the income and expenditures
17incurred by a recognized tourist promotion agency receiving any
18revenues from the tax authorized under this section shall be
19submitted annually by the recognized tourist promotion agency to
20the county commissioners.

21(e) For the purposes of defraying the costs associated with
22the collection of the tax imposed hereunder and otherwise
23performing its obligations under this section, the county is
24hereby authorized to deduct and retain an administrative fee
25from the taxes collected hereunder. Such administrative fee
26shall be established by the county but shall not exceed in any
27tax year the lesser of:

28(1) two per centum of all taxes collected hereunder; or

29(2) forty thousand dollars ($40,000), which amount shall be
30adjusted biannually, beginning two years after the date of

1enactment, by the percentage growth in the Consumer Price Index
2for All Urban Consumers as determined by the United States
3Department of Labor.

4(f) Definitions.--As used in this section, the following
5words and phrases shall have the meanings given to them in this
6subsection:

7"Bed and breakfast" or "homestead." A public accommodation
8consisting of a private residence, which contains ten or fewer
9bedrooms, used for providing overnight accommodations to the
10public and in which breakfast is the only meal served and is
11included in the charge for the room.

12"Consideration." Receipts, fees, charges, rentals, leases,
13cash, credits, property of any kind or nature or other payment
14received by operators in exchange for or in consideration of the
15use or occupancy by a transient of a room or rooms in a hotel
16for any temporary period.

17"County." Any county of the third class through the eighth
18class which on the effective date of this section does not have
19the authority to levy a hotel occupancy or room rental tax.

20"Hotel." A hotel, motel, bed and breakfast, homestead, inn,
21guest house or other structure which holds itself out by any
22means, including advertising, license, registration with an
23innkeepers' group, convention listing association, travel
24publication or similar association or with a government agency,
25as being available to provide overnight lodging or use of
26facility space for consideration to persons seeking temporary
27accommodation; any place which advertises to the public at large
28or any segment thereof that it will provide beds, sanitary
29facilities or other space for a temporary period to members of
30the public at large; or any place recognized as a hostelry. The

1term does not include any portion of a facility that is devoted
2to persons who have an established permanent residence or a
3college or university student residence hall or any private
4campground or any cabins, public campgrounds or other facilities
5located on State land.

6"Occupancy." The use or possession or the right to the use
7or possession by any person other than a permanent resident of
8any room in a hotel for any purpose or the right to the use or
9possession of the furnishings or to the services accompanying
10the use and possession of the room.

11"Operator." An individual, partnership, nonprofit or profit-
12making association or corporation or other person or group of
13persons who maintain, operate, manage, own, have custody of or
14otherwise possess the right to rent or lease overnight
15accommodations in a hotel to the public for consideration.

16"Patron." A person who pays the consideration for the
17occupancy of a room or rooms in a hotel.

18"Permanent resident." A person who has occupied or has the
19right to occupancy of a room or rooms in a hotel as a patron or
20otherwise for a period exceeding thirty consecutive days.

21"Recognized tourist promotion agency." The nonprofit
22corporation, organization, association or agency which is
23engaged in planning and promoting programs designed to stimulate
24and increase the volume of tourist, visitor and vacation
25business within counties served by the agency as that term is
26defined in the act of April 28, 1961 (P.L.111, No.50), known as
27the "Tourist Promotion Law."

28"Room." A space in a hotel set aside for use and occupancy
29by patrons, or otherwise, for consideration, having at least one
30bed or other sleeping accommodation in a room or group of rooms.

1"Transaction." The activity involving the obtaining by a
2transient or patron of the use or occupancy of a hotel room from
3which consideration is payable to the operator under an express
4or an implied contract.

5"Transient." An individual who obtains accommodation in a
6hotel by means of registering at the facility for the temporary
7occupancy of a room for the personal use of the individual by
8paying a fee to the operator.

9"Treasurer." The elected treasurer of the county or, if
10there is no elected treasurer of the county, such other official
11or agent of the county as may be designated by the county to
12collect and account for the tax authorized by this section.]

13Section 2. The act is amended by adding sections to read:

14Section 1770.10. Hotel Room Rental Tax in Third through 
15Eighth Class Counties.--(a) A county may, by ordinance, impose 
16a tax which shall be known as the hotel room rental tax on the 
17consideration received by each operator of a hotel within the 
18county from each transaction of renting a room or rooms to 
19accommodate transients. The tax shall be collected by the 
20operator from the patron of the room and paid over to the county 
21where the hotel is located as provided under this section.

22(b)  The rate of tax imposed under this section shall not
23exceed five per centum.

24(c)  The treasurer of each county electing to impose the tax
25authorized under this section shall collect the tax and deposit
26the revenues received from the tax in a special fund established
27for that purpose. Subsequent to the deduction for administrative
28costs established in subsection (g), the county shall distribute
29to the recognized tourist promotion agency all revenues received
30from the tax not later than sixty days after receipt of the tax

1revenues.

2(d) The revenues from the special fund shall be used by the
3recognized tourist promotion agency for any of the following
4purposes:

5(1) Marketing the area served by the agency as a leisure
6travel destination.

7(2) Marketing the area served by the agency as a business,
8convention or meeting travel destination.

9(3) Using all appropriate marketing tools to accomplish
10these purposes, including, but not limited to, advertising,
11publicity, publications, direct marketing, sales, technology and
12participation in industry trade shows that attract tourists to
13the area served by the agency.

14(4)  <-Projects or programs Programs or grants that are
15directly and substantially related to tourism within the county,
16augment and do not compete with private sector tourism efforts
17and improve and expand the county as a destination market as
18deemed necessary by the recognized tourist promotion agency.

19(5)  Any other tourism marketing or promotion program or
20tourism project <-that does not compete with private sector
21tourism efforts as deemed necessary by the recognized tourist
22promotion agency.

23(e) Each taxable year for any tax imposed under this section
24shall run concurrently with the county's fiscal year.

25(f) An audited report or financial statement, as determined
26by the county in consultation with the recognized tourist
27promotion agency, on the income and expenditures incurred by a
28recognized tourist promotion agency receiving any revenues from
29the tax authorized under this section shall be submitted
30annually by the recognized tourist promotion agency to the

1county commissioners.

2(g) For the purposes of defraying the costs associated with
3the collection of the tax imposed under this section and
4otherwise performing its obligations under this section, the
5county may deduct and retain an administrative fee from the
6taxes collected under this section. The administrative fee shall
7be established by the county but shall not exceed five per
8centum in any taxable year.

9(h) A penalty of one and one-half per centum per month shall
10be imposed for failure to timely collect and remit the tax
11authorized by this section. In addition to other remedies
12available for collection of debts, the county may file a lien
13upon the hotel in the name of the county and for the use of the
14county as provided by law.

15(i) The following words and phrases when used in this
16section shall have the meanings given to them in this subsection
17unless the context clearly indicates otherwise:

18"Bed and breakfast" or "homestead." A public accommodation
19consisting of a private residence, which contains ten or fewer
20bedrooms, used for providing overnight accommodations to the
21public and in which breakfast is the only meal served and is
22included in the charge for the room.

23"Consideration."  Receipts, fees, charges, rentals, leases,
24cash, credits, property of any kind or nature or other payment
25received by operators in exchange for or in consideration of the
26use or occupancy by a transient of a room or rooms in a hotel
27for a temporary period.

28"County."  Any county of the third through eighth class that
29was authorized to levy a hotel occupancy or room rental tax
30under the former section 1770.2 or 1770.6.

1"Hotel." A hotel, motel, inn, guesthouse, rooming house, bed 
2and breakfast, homestead or other structure which holds itself 
3out by any means, including advertising, license, registration 
4with an innkeepers' group, convention listing association, 
5travel publication or similar association or with a government 
6agency, as being available to provide overnight lodging for 
7consideration to persons seeking temporary accommodation; any 
8place which advertises to the public at large or any segment
9thereof that it will provide beds, sanitary facilities or other 
10space for a temporary period to members of the public at large; 
11any place recognized as a hostelry; or any private campground or 
12any cabins, public campgrounds or cabins or other facilities 
13located on State land or private property. The term does not 
14include any charitable institution, or portion of a facility 
15that is devoted to persons who have an established permanent 
16residence or a college or university student residence hall 
17currently occupied by students enrolled in a degree program, or 
18an educational or religious institution summer camp for 
19children, hospital or nursing home.

20"Marketing."  An action by a recognized tourism promotion
21agency that includes, but is not limited to, promoting and
22encouraging visitors to visit a specific county, counties or
23geographic region.

24"Occupancy." The use or possession or the right to the use
25or possession by any person other than a permanent resident of
26any room in a hotel for any purpose or the right to the use or
27possession of the furnishings or to the services accompanying
28the use and possession of the room.

29"Operator."  Any individual, partnership, nonprofit or
30profit-making association or corporation or other person or

1group of persons who maintain, operate, manage, own, have
2custody of or otherwise possess the right to rent or lease
3overnight accommodations in a building to the public for
4consideration.

5"Patron."  Any person who pays the consideration for the
6occupancy of a room or rooms in a hotel.

7"Permanent resident." A person who has occupied or has the
8right to occupancy of a room or rooms in a hotel as a patron or
9otherwise for a period exceeding thirty consecutive days.

10"Recognized tourist promotion agency."  The nonprofit
11corporation, organization, association or agency which is
12engaged in planning and promoting programs designed to stimulate
13and increase the volume of tourist, visitor and vacation
14business within a county and certified by the county as of the
15effective date of this subsection or under section 1770.11.

16"Room."  A space in a building set aside for use and
17occupancy by patrons or otherwise, for consideration, having at
18least one bed or other sleeping accommodations provided; or, in
19campgrounds, a space of land set aside for occupancy by patrons
20or otherwise for consideration.

21"Transaction."  The activity involving the obtaining by a
22transient or patron of the use or occupancy of a hotel room from
23which consideration emanates to the operator under an expressed
24or implied contract.

25"Transient." An individual who obtains accommodation in a
26hotel by means of registering at the facility for the temporary
27occupancy of a room for the personal use of the individual by
28paying a fee to the operator.

29Section 1770.11. Certification of Recognized Tourist 
30Promotion Agencies.--(a) A county may certify a nonprofit
 

1corporation, organization, association or agency to serve as the 
2county's recognized tourist promotion agency. The county may not 
3have more than one recognized tourist promotion agency.

4(b) (1) A county must certify a recognized tourist
5promotion agency under subsection (a) by proper resolution of
6the governing body of the county, concurred in by resolution of
7the governing bodies of cities, boroughs, towns or townships
8within the county which have an aggregate of more than fifty per
9centum of the total population of the county as determined by
10the most recently completed Federal decennial census.

11(2) A recognized tourist promotion agency shall operate
12until that agency has dissolved as an entity, withdrawn its
13certification or has been decertified by the county under
14subsection (c).

15(c)  (1) Notwithstanding any other provision of law, a
16county may decertify a recognized tourist promotion agency by
17proper resolution of the governing body of a county, concurred
18in by resolution of the governing bodies of cities, boroughs,
19towns or townships within the county which have an aggregate of
20more than sixty-five per centum of the total population of the
21county as determined by the most recently completed Federal
22decennial census.

23(2) The county shall hold at least one public hearing on
24decertification no less than seven days before a meeting to
25adopt a resolution under this subsection.

26(3) This subsection shall apply to recognized tourist
27promotion agencies, regardless of the date on which they were
28recognized under the act of July 4, 2008 (P.L.621, No.50), known
29as the "Tourism Promotion Act," or certified by the county under
30this section.

<-1Section 3. Nothing in this act shall be construed to require
2a county that has imposed a tax under the former section 1770.2
3or 1770.6 to enact a new ordinance to impose the tax under
4section 1770.10 if all of the following apply:

5(1) The tax rate in the ordinance imposing the tax under
6the former section 1770.2 or 1770.6 has not changed.

7(2) The ordinance imposing the tax under the former
8section 1770.2 or 1770.6 is otherwise consistent with section
91770.10.

10Section <-3 4. This act shall take effect immediately.