SENATE AMENDED
PRIOR PRINTER'S NOS. 901, 2595, 2685 PRINTER'S NO. 2738
No. 801 Session of 1985
INTRODUCED BY COWELL, IRVIS, PISTELLA, TRELLO, GAMBLE, PRESTON,
MICHLOVIC, OLASZ, PETRONE, DeLUCA, ITKIN, MARKOSEK AND
SEVENTY, MARCH 26, 1985
AS AMENDED ON SECOND CONSIDERATION, IN SENATE, JANUARY 22, 1986
AN ACT
1 Amending the act of July 28, 1953 (P.L.723, No.230), entitled,
2 as amended, "An act relating to counties of the second class
3 and second class A; amending, revising, consolidating and
4 changing the laws relating thereto," further providing for
5 hydroelectric generating facilities; AND CLARIFYING THE <--
6 AUTHORITY OF COUNTIES OF THE SECOND CLASS A TO CONTINUE TO
7 ENACT THE HOTEL ROOM TAX.
8 The General Assembly of the Commonwealth of Pennsylvania
9 hereby enacts as follows:
10 SECTION 1. SECTION 1970.2 OF THE ACT OF JULY 28, 1953 <--
11 (P.L.723, NO.230), KNOWN AS THE SECOND CLASS COUNTY CODE,
12 AMENDED DECEMBER 7, 1982 (P.L.778, NO.224) AND DECEMBER 10, 1982
13 (P.L.1079, NO.252), IS REENACTED AND AMENDED TO READ:
14 SECTION 1970.2. HOTEL ROOM RENTAL.--(A) THE FOLLOWING WORDS
15 AND PHRASES WHEN USED IN THIS SECTION SHALL HAVE, UNLESS THE
16 CONTEXT CLEARLY INDICATES OTHERWISE, THE MEANINGS ASCRIBED TO
17 THEM IN THIS SECTION:
18 "CONSIDERATION," RECEIPTS, FEES, CHARGES, RENTALS, LEASES,
19 CASH, CREDITS, PROPERTY OF ANY KIND OR NATURE, OR OTHER PAYMENT
1 RECEIVED BY OPERATORS IN EXCHANGE FOR OR IN CONSIDERATION OF THE
2 USE OR OCCUPANCY BY A TRANSIENT OF A ROOM OR ROOMS IN A HOTEL
3 FOR ANY TEMPORARY PERIOD.
4 "CONVENTION CENTER OR EXHIBITION HALL," A BUILDING OR SERIES
5 OF BUILDINGS NOT USED FOR THE RETAIL SALE OF MERCHANDISE OR PART
6 OF ANY SHOPPING CENTER, MALL OR OTHER RETAIL CENTER TOGETHER
7 WITH ANY LAND APPURTENANT THERETO, A MAJOR FUNCTION OF WHICH IS
8 TO HOUSE MEETINGS, EXHIBITIONS, SHOWS, CONVENTIONS, ASSEMBLIES,
9 CONVOCATIONS, AND SIMILAR GATHERINGS: PROVIDED, THAT ONE OF THE
10 AFORESAID BUILDINGS SHALL CONTAIN A MINIMUM OF SEVENTY-FIVE
11 THOUSAND (75,000) GROSS SQUARE FEET OF EXHIBITION SPACE FOR
12 SHOWS AND CONVENTIONS.
13 "COOPERATING POLITICAL SUBDIVISION OR AGENCY OF GOVERNMENT,"
14 ANY CITY OR PUBLIC AUTHORITY LOCATED IN SUCH COUNTY WITHIN WHOSE
15 BOUNDARIES A CONVENTION CENTER OR EXHIBITION HALL IS PLANNED OR
16 CONSTRUCTED WHICH SHARES WITH THE COUNTY ANY DUTIES, OBLIGATIONS
17 OR PRIVILEGES WITH RESPECT TO THE CONVENTION CENTER SITUATED
18 THEREIN.
19 "HOTEL," A HOTEL, MOTEL, INN, GUEST HOUSE, OR OTHER BUILDING
20 LOCATED WITHIN THE TAXING JURISDICTION WHICH HOLDS ITSELF OUT BY
21 ANY MEANS INCLUDING ADVERTISING, LICENSE, REGISTRATION WITH ANY
22 INNKEEPER'S GROUP, CONVENTION LISTING ASSOCIATION, TRAVEL
23 PUBLICATION OR SIMILAR ASSOCIATION OR WITH ANY GOVERNMENT AGENCY
24 AS BEING AVAILABLE TO PROVIDE OVERNIGHT LODGING OR USE OF
25 FACILITY SPACE FOR CONSIDERATION TO PERSONS SEEKING TEMPORARY
26 ACCOMMODATION; ANY PLACE WHICH ADVERTISES TO THE PUBLIC AT LARGE
27 OR ANY SEGMENT THEREOF THAT IT WILL PROVIDE BEDS, SANITARY
28 FACILITIES OR OTHER SPACE FOR A TEMPORARY PERIOD TO MEMBERS OF
29 THE PUBLIC AT LARGE; ANY PLACE RECOGNIZED AS A HOSTELRY:
30 PROVIDED, THAT PORTIONS OF SUCH FACILITY WHICH ARE DEVOTED TO
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1 PERSONS WHO HAVE ESTABLISHED PERMANENT RESIDENCE SHALL NOT BE
2 INCLUDED IN THIS DEFINITION.
3 "MUNICIPALITY," A TOWNSHIP, BOROUGH OR A HOME RULE
4 MUNICIPALITY WHICH WAS FORMERLY A TOWNSHIP OR BOROUGH.
5 "OCCUPANCY," THE USE OR POSSESSION OR THE RIGHT TO THE USE OR
6 POSSESSION BY ANY PERSON OTHER THAN A PERMANENT RESIDENT OF ANY
7 ROOM IN A HOTEL FOR ANY PURPOSE OR THE RIGHT TO THE USE OR
8 POSSESSION OF THE FURNISHINGS OR TO THE SERVICES ACCOMPANYING
9 THE USE AND POSSESSION OF THE ROOM.
10 "OPERATOR," ANY INDIVIDUAL, PARTNERSHIP, NONPROFIT OR PROFIT-
11 MAKING ASSOCIATION OR CORPORATION OR OTHER PERSON OR GROUP OF
12 PERSONS WHO MAINTAIN, OPERATE, MANAGE, OWN, HAVE CUSTODY OF, OR
13 OTHERWISE POSSESS THE RIGHT TO RENT OR LEASE OVERNIGHT
14 ACCOMMODATIONS IN ANY HOTEL TO THE PUBLIC FOR CONSIDERATION.
15 "OPERATING DEFICIT," THE EXCESS OF EXPENSES OVER RECEIPTS
16 FROM THE OPERATION AND MANAGEMENT OF A CONVENTION CENTER OR
17 EXHIBITION HALL.
18 "PATRON," ANY PERSON WHO PAYS THE CONSIDERATION FOR THE
19 OCCUPANCY OF A ROOM OR ROOMS IN A HOTEL.
20 "PERMANENT RESIDENT," ANY PERSON WHO HAS OCCUPIED OR HAS THE
21 RIGHT TO OCCUPANCY OF ANY ROOM OR ROOMS IN A HOTEL AS A PATRON
22 OR OTHERWISE FOR A PERIOD EXCEEDING THIRTY (30) CONSECUTIVE
23 DAYS.
24 "RECOGNIZED TOURIST PROMOTION AGENCY," THE NONPROFIT
25 CORPORATION, ORGANIZATION, ASSOCIATION OR AGENCY WHICH IS AND
26 HAS BEEN ENGAGED IN PLANNING AND PROMOTING PROGRAMS DESIGNED TO
27 STIMULATE AND INCREASE THE VOLUME OF TOURIST, VISITOR AND
28 VACATION BUSINESS WITHIN COUNTIES SERVED BY SUCH AGENCIES AS
29 THAT TERM IS DEFINED IN THE ACT OF APRIL 28, 1961 (P.L.111,
30 NO.50), KNOWN AS THE "TOURIST PROMOTION LAW," AND WHICH
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1 PARTICULAR NONPROFIT CORPORATION, ORGANIZATION, ASSOCIATION OR
2 AGENCY HERETOFORE HAS BEEN RECOGNIZED BY THE DEPARTMENT OF
3 COMMERCE ALL IN ACCORDANCE WITH THE TERMS OF SAID "TOURIST
4 PROMOTION LAW."
5 "ROOM," A SPACE IN A HOTEL SET ASIDE FOR USE AND OCCUPANCY BY
6 PATRONS, OR OTHERWISE, FOR CONSIDERATION, HAVING AT LEAST ONE
7 BED OR OTHER SLEEPING ACCOMMODATION PROVIDED THEREIN.
8 "TEMPORARY," A PERIOD OF TIME NOT EXCEEDING THIRTY (30)
9 CONSECUTIVE DAYS.
10 "TRANSACTION," THE ACTIVITY INVOLVING THE OBTAINING BY A
11 TRANSIENT OR PATRON OF THE USE OR OCCUPANCY OF A HOTEL ROOM FROM
12 WHICH CONSIDERATION EMANATES TO THE OPERATOR UNDER AN EXPRESS OR
13 AN IMPLIED CONTRACT.
14 "TRANSIENT," ANY INDIVIDUAL WHO OBTAINS ACCOMMODATION IN ANY
15 HOTEL FOR HIMSELF BY MEANS OF REGISTERING AT THE FACILITY FOR
16 THE TEMPORARY OCCUPANCY OF ANY ROOM FOR THE PERSONAL USE OF THAT
17 INDIVIDUAL BY PAYING TO THE OPERATOR OF THE FACILITY A FEE IN
18 CONSIDERATION THEREFOR.
19 (B) THE COUNTY COMMISSIONERS IN EACH COUNTY OF THE SECOND
20 CLASS ARE HEREBY AUTHORIZED TO IMPOSE AN EXCISE TAX AT THREE PER
21 CENTUM (3%) ON THE CONSIDERATION RECEIVED BY EACH OPERATOR OF A
22 HOTEL WITHIN THE COUNTY FROM EACH TRANSACTION OF RENTING A ROOM
23 OR ROOMS TO ACCOMMODATE TRANSIENTS. THE COUNTY COMMISSIONERS IN
24 EACH COUNTY OF THE SECOND CLASS A ARE HEREBY AUTHORIZED TO
25 IMPOSE AN EXCISE TAX NOT TO EXCEED THREE PER CENTUM (3%) ON THE
26 CONSIDERATION RECEIVED BY EACH OPERATOR OF A HOTEL WITHIN THE
27 COUNTY FROM EACH TRANSACTION OF RENTING A ROOM OR ROOMS TO
28 ACCOMMODATE TRANSIENTS. THE TAX SHALL BE COLLECTED BY THE
29 OPERATOR FROM THE PATRON OF THE ROOM AND PAID OVER TO THE COUNTY
30 AS HEREIN PROVIDED.
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1 (C) THE TREASURER OF EACH COUNTY ELECTING TO IMPOSE THE TAX
2 AUTHORIZED UNDER THIS SECTION IS HEREBY DIRECTED TO COLLECT THE
3 TAX AND IN COUNTIES OF THE SECOND CLASS TO DEPOSIT THE REVENUES
4 RECEIVED FROM THE TAX IN A SPECIAL FUND ESTABLISHED SOLELY FOR
5 PURPOSES OF A CONVENTION CENTER OR EXHIBITION HALL. THE REVENUES
6 SHALL BE DISTRIBUTED AS FOLLOWS:
7 (1) ONE-THIRD (1/3) OF ALL REVENUES RECEIVED BY THE
8 COUNTY FROM THE EXCISE TAX SHALL BE DISTRIBUTED TO A TOURIST
9 PROMOTION AGENCY PURSUANT TO SECTION 2199.14.
10 (2) ONE-THIRD (1/3) OF THE THREE PER CENTUM (3%) EXCISE
11 TAX COLLECTED BY HOTELS WITHIN A MUNICIPALITY WHEREIN A
12 CONVENTION CENTER OR EXHIBITION HALL IS LOCATED (LESS THE
13 COST OF COLLECTING THE TAX) SHALL, AT THE REQUEST OF SUCH
14 MUNICIPALITY, BE RETURNED TO THAT MUNICIPALITY WHEREIN SUCH
15 CONVENTION CENTER OR EXHIBITION HALL IS LOCATED, FOR DEPOSIT
16 IN THAT MUNICIPALITY'S SPECIAL FUND ESTABLISHED SOLELY FOR
17 PURPOSES OF PAYING FOR PROMOTIONAL PROGRAMS IMPLEMENTED BY A
18 NONPROFIT ORGANIZATION WHICH ARE DESIGNED TO STIMULATE AND
19 INCREASE THE VOLUME OF CONVENTIONS AND VISITORS WITHIN THE
20 MUNICIPALITY: PROVIDED, HOWEVER, THAT AN AUDITED REPORT ON
21 THE INCOME AND EXPENDITURES INCURRED BY THE MUNICIPALITY
22 RECEIVING FUNDS FROM THE EXCISE TAX ON HOTEL ROOM RENTALS
23 SHALL BE MADE ANNUALLY TO THE BOARD OF COUNTY COMMISSIONERS.
24 (3) ALL REMAINING REVENUES FROM THE THREE PER CENTUM
25 (3%) EXCISE TAX RECEIVED BY THE COUNTY SHALL BE USED
26 EXCLUSIVELY FOR OPERATIONAL AND MAINTENANCE EXPENDITURES OF
27 THE CONVENTION CENTER OR EXHIBITION HALL AS PROVIDED IN
28 SUBSECTION (D).
29 IN COUNTIES OF THE SECOND CLASS A THE REVENUES SHALL BE
30 DEPOSITED IN A SPECIAL FUND ESTABLISHED SOLELY FOR PURPOSES OF
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1 TRAVEL AND TOURISM PROMOTION AND ADVERTISING RELATED TO SUCH
2 PROMOTION. THE TREASURER IS HEREBY AUTHORIZED TO ESTABLISH RULES
3 AND REGULATIONS CONCERNING THE COLLECTION OF THE TAX.
4 (D) IN COUNTIES OF THE SECOND CLASS, EXPENDITURES FROM THE
5 FUND ESTABLISHED PURSUANT TO SUBSECTION (C) SHALL BE USED FOR
6 ALL PURPOSES WHICH A PUBLIC AUTHORITY MAY DETERMINE TO BE
7 REASONABLY NECESSARY TO THE SUPPORT, OPERATION AND MAINTENANCE
8 OF A CONVENTION CENTER OR EXHIBITION HALL, INCLUDING BUT NOT
9 LIMITED TO THE FOLLOWING:
10 (1) ADVERTISING AND PUBLICIZING TOURIST ATTRACTIONS IN
11 THE AREA SERVED BY THE AGENCY;
12 (2) PROMOTING AND OTHERWISE ENCOURAGING THE USE OF THE
13 FACILITIES IN THE AREA SERVED BY THE AGENCY BY THE PUBLIC AS
14 A WHOLE;
15 (3) PROMOTING AND ATTRACTING CONVENTIONS, EXHIBITIONS
16 AND OTHER FUNCTIONS TO UTILIZE FACILITIES IN THE AREA SERVED
17 BY THE AGENCY;
18 (4) PRECOMPLETION ADVERTISING AND PUBLICIZING OF ANY
19 CONVENTION CENTER OR EXHIBITION HALL;
20 (5) PROMOTING AND ATTRACTING CONVENTIONS, EXHIBITIONS
21 AND OTHER FUNCTIONS TO UTILIZE THE CONVENTION CENTER OR
22 EXHIBITION HALL;
23 (6) PROMOTING AND OTHERWISE ENCOURAGING THE USE OF THE
24 PREMISES BY THE PUBLIC AS A WHOLE, OR ANY SEGMENT THEREOF;
25 (7) OPERATING, FURNISHING AND OTHERWISE MAINTAINING AND
26 EQUIPPING THE PREMISES AND REALTY APPURTENANT THERETO;
27 (8) FURNISHING AND EQUIPPING THE BUILDING AND GROUNDS.
28 IT IS THE INTENTION OF THIS SECTION THAT THE RECEIPTS FROM
29 ANY TAX IMPOSED PURSUANT TO THE PROVISIONS OF THIS ACT BE
30 USED IN COUNTIES OF THE SECOND CLASS TO OFFSET THE ENTIRE
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1 OPERATING DEFICIT, IF ANY, OF ANY CONVENTION CENTER OR
2 EXHIBITION HALL INCLUDING, EQUALLY, SHARES OF ANY COOPERATING
3 POLITICAL SUBDIVISION OR AGENCY OF GOVERNMENT INCURRED
4 PURSUANT TO ANY AGREEMENT PRESENTLY EXISTING OR EXECUTED
5 HEREAFTER. THE OPERATING DEFICIT SHALL BE DETERMINED BY ANY
6 PUBLIC AUTHORITY WHICH IS THE DESIGNATED OPERATING AGENCY OF
7 ANY CONVENTION CENTER OR EXHIBITION HALL.
8 (D.1) IN COUNTIES OF THE SECOND CLASS A, EXPENDITURES FROM
9 THE FUND ESTABLISHED PURSUANT TO SUBSECTION (C) SHALL BE
10 ANNUALLY APPROPRIATED BY THE COUNTY COMMISSIONERS FOR TOURIST
11 PROMOTION ACTIVITIES, TO BE EXECUTED BY THE DESIGNATED TOURIST
12 PROMOTION AGENCY FOR:
13 (1) MARKETING THE AREA SERVED BY THE AGENCY AS A LEISURE
14 TRAVEL DESTINATION;
15 (2) MARKETING THE AREA SERVED BY THE AGENCY AS A
16 CONVENTION AND BUSINESS TRAVEL DESTINATION;
17 (3) MARKETING THE AREA SERVED BY THE AGENCY TO THE
18 PUBLIC AS A WHOLE FOR USE OF ITS TOURIST AND CONVENTION
19 FACILITIES;
20 (4) USING ALL APPROPRIATE MARKETING TOOLS TO ACCOMPLISH
21 THESE PURPOSES, INCLUDING ADVERTISING, PUBLICITY,
22 PUBLICATIONS, DIRECT MARKETING, DIRECT SALES, PARTICIPATION
23 IN TRAVEL TRADE SHOWS, ETC.
24 THE COUNTY COMMISSIONERS MAY DEDUCT FROM THE FUNDS COLLECTED ANY
25 DIRECT OR INDIRECT COSTS ATTRIBUTABLE TO THE COLLECTION OF THE
26 TAX.
27 (E) (1) THE PROVISIONS OF THIS SECTION RELATING TO COUNTIES
28 OF THE SECOND CLASS SHALL REMAIN IN FORCE FROM YEAR TO YEAR.
29 REVENUES IN EXCESS OF AMOUNTS NEEDED TO OFFSET OPERATING
30 DEFICITS SHALL BE DETERMINED BY THE PUBLIC AUTHORITY AND MAY
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1 BE ACCUMULATED, AND ANY REVENUES MAY BE USED TO PROVIDE PART
2 OR ALL OF ANY ANNUAL PAYMENT TO BE PAID BY A COUNTY OR A
3 POLITICAL SUBDIVISION UNDER ANY AGREEMENT WITH ANY PUBLIC
4 AUTHORITY CREATED UNDER THE ACT OF JULY 29, 1953 (P.L.1034,
5 NO.270), KNOWN AS THE "PUBLIC AUDITORIUM AUTHORITIES LAW,"
6 WHICH HAS BEEN DESIGNATED AS THE OPERATING AGENCY FOR A
7 CONVENTION CENTER OR EXHIBITION HALL IN SUPPORT OF BONDS
8 ISSUED BY THE PUBLIC AUTHORITY; OR TO EFFECT NECESSARY
9 EXPANSION OR FURTHER CAPITAL IMPROVEMENTS, WITHIN THE
10 DISCRETION OF THE COOPERATING POLITICAL SUBDIVISIONS AND THE
11 PUBLIC AUTHORITY.
12 (2) [THE PROVISIONS OF THIS SECTION RELATING TO COUNTIES
13 OF THE SECOND CLASS A SHALL REMAIN IN FORCE FOR THREE (3)
14 YEARS FROM THE EFFECTIVE DATE OF THIS ACT, AT WHICH TIME SUCH
15 PROVISIONS SHALL TERMINATE WITHOUT FURTHER ACTION ON THE PART
16 OF THE COUNTY COMMISSIONERS.] THE PROVISIONS OF THIS SECTION
17 RELATING TO COUNTIES OF THE SECOND CLASS A SHALL REMAIN IN <--
18 FORCE AND EFFECT FOR THREE (3) YEARS FROM THE DATE OF THIS
19 REENACTMENT AND MAY BE CONTINUED THEREAFTER BY ORDINANCE OR
20 RESOLUTION OF THE COUNTY COMMISSIONERS OF THE RESPECTIVE
21 COUNTIES.
22 (F) EACH TAX YEAR FOR ANY TAX IMPOSED HEREUNDER SHALL RUN
23 CONCURRENTLY WITH THE CALENDAR YEAR.
24 Section 1 2. Sections 2101-A, 2104-A and 2106-A of the act <--
25 of July 28, 1953 (P.L.723, No.230), known as the Second Class <--
26 County Code, added December 7, 1982 (P.L.778, No.224), are
27 amended to read:
28 Section 2101-A. Manufacture and Sale of [Electricity]
29 Electric Power.--Any county of the second class may [manufacture
30 electricity] develop, transmit, utilize or distribute TO <--
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1 FACILITIES OWNED BY THE COUNTY OR BY A MUNICIPAL AUTHORITY
2 CREATED BY THE COUNTY electric power by means of a hydroelectric
3 generating facility owned [or operated by the county], operated
4 and developed as a qualifying cogeneration, low-head
5 hydroelectric generation or a small power production facility
6 pursuant to and in accordance with the Public Utility Regulatory
7 Policies Act of 1978 (Public Law 95-617, 16 U.S.C. §§ 796 and
8 824 a-3). Any county of the second class owning or operating a
9 hydroelectric generating facility may make contracts for the
10 sale of [electricity] electric power to persons engaged in the
11 business of the manufacture or sale of electricity.
12 Section 2104-A. Construction or Purchase of Hydroelectric
13 Generation Facilities.--Any county of the second class may
14 construct or purchase facilities or real estate for the purpose
15 of [manufacturing electricity] developing, transmitting,
16 utilizing or distributing electric power by hydroelectric
17 generation. Any county of the second class may purchase a
18 hydroelectric generating facility at such price as may be agreed
19 upon by the county and the person, copartnership or a majority
20 of the stockholders of a corporation that owns such facility.
21 AS USED IN THIS SECTION THE PHRASE "DISTRIBUTING ELECTRIC <--
22 POWER" MEANS THE DISTRIBUTION OF ELECTRIC POWER PRODUCED BY
23 HYDROELECTRIC GENERATION TO FACILITIES OWNED BY THE COUNTY OR BY
24 A MUNICIPAL AUTHORITY CREATED BY THE COUNTY.
25 Section 2106-A. Authority Compliance.--A county of the
26 second class desiring to construct, or purchase, or operate, or
27 sell a hydroelectric facility, as a municipal body, may
28 authorize an existing authority or establish a new authority to
29 construct, operate, generate or sell the power from the
30 authority's hydroelectric facilities under the laws of the
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1 Commonwealth authorizing the creation and jurisdiction of
2 municipal authorities.
3 Section 2 3. This act shall take effect in 60 days. (A) <--
4 SECTION 2 OF THIS ACT SHALL TAKE EFFECT IN 60 DAYS.
5 (B) THE REMAINDER OF THIS ACT SHALL TAKE EFFECT IMMEDIATELY.
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