THE GENERAL ASSEMBLY OF PENNSYLVANIA

HOUSE BILL

INTRODUCED BY MILLER, DePASQUALE, GILLESPIE, GROVE, SAYLOR AND TALLMAN, MARCH 12, 2012

REFERRED TO COMMITTEE ON TOURISM AND RECREATIONAL DEVELOPMENT, MARCH 12, 2012  

AN ACT

Amending the act of August 9, 1955 (P.L.323, No.130), entitled,

as amended, "An act relating to counties of the first, third,

fourth, fifth, sixth, seventh and eighth classes; amending,

revising, consolidating and changing the laws relating

thereto; relating to imposition of excise taxes by counties,

including authorizing imposition of an excise tax on the

rental of motor vehicles by counties of the first class; and

providing for regional renaissance initiatives," in fiscal

affairs, further providing for authorization of excise tax;

and providing for hotel room rental tax in certain third

class counties.

The General Assembly of the Commonwealth of Pennsylvania

hereby enacts as follows:

Section 1.  Section 1770.2(f) of the act of August 9, 1955

(P.L.323, No.130), known as The County Code, amended December

22, 2000 (P.L.1019, No.142), is amended to read:

Section 1770.2.  Authorization of Excise Tax.--* * *

(f)  As used in this section, the following words and phrases

shall have the meanings given to them in this subsection:

"Consideration."  Receipts, fees, charges, rentals, leases,

cash, credits, property of any kind or nature, or other payment

received by operators in exchange for or in consideration of the

use or occupancy by a transient of a room or rooms in a hotel

for any temporary period.

"County."  Any county which is on the effective date of this

act [a county of the third class having a population under the

1990 Federal Decennial Census in excess of 337,000 residents,

but less than 341,000 residents, or] a county of the third class

having a population under the 1990 Federal Decennial Census in

excess of 374,000 residents, but less than 380,000 residents, or

a county of the third class having a population under the 1990

Federal Decennial Census in excess of 415,000 residents, but

less than 500,000 residents, or a county of the fourth class

having a population under the 1990 Federal Decennial Census in

excess of 159,000 residents, but less than 175,000 residents, or

a county of the fifth class having a population under the 1990

Federal Decennial Census in excess of 123,000 residents, or a

county of the fifth class having a population under the 1990

Federal Decennial Census in excess of 117,000 residents, but

less than 121,050 residents, or a county of the sixth class

having a population under the 1990 Federal Decennial Census in

excess of 87,000 residents.

"Hotel."  A hotel, motel, inn, guest house or other structure

which holds itself out by any means, including advertising,

license, registration with an innkeepers' group, convention

listing association, travel publication or similar association

or with a government agency, as being available to provide

overnight lodging or use of facility space for consideration to

persons seeking temporary accommodation; any place which

advertises to the public at large or any segment thereof that it

will provide beds, sanitary facilities or other space for a

temporary period to members of the public at large; or any place

recognized as a hostelry. The term does not include any portion

of a facility that is devoted to persons who have an established

permanent residence or a college or university student residence

hall or any private campground, or any cabins, public

campgrounds or other facilities located on State land.

"Occupancy."  The use or possession or the right to the use

or possession by any person other than a permanent resident of

any room in a hotel for any purpose or the right to the use or

possession of the furnishings or to the services accompanying

the use and possession of the room.

"Operator."  An individual, partnership, nonprofit or profit-

making association or corporation or other person or group of

persons who maintain, operate, manage, own, have custody of or

otherwise possess the right to rent or lease overnight

accommodations in a hotel to the public for consideration.

"Patron."  A person who pays the consideration for the

occupancy of a room or rooms in a hotel.

"Permanent resident."  A person who has occupied or has the

right to occupancy of a room or rooms in a hotel as a patron or

otherwise for a period exceeding thirty consecutive days.

"Recognized tourist promotion agency."  The nonprofit

corporation, organization, association or agency which is

engaged in planning and promoting programs designed to stimulate

and increase the volume of tourist, visitor and vacation

business within counties served by the agency as that term is

defined in the act of April 28, 1961 (P.L.111, No.50), known as

the "Tourist Promotion Law."

"Room."  A space in a hotel set aside for use and occupancy

by patrons, or otherwise, for consideration, having at least one

bed or other sleeping accommodation in a room or group of rooms.

"Transaction."  The activity involving the obtaining by a

transient or patron of the use or occupancy of a hotel room from

which consideration is payable to the operator under an express

or an implied contract.

"Transient."  An individual who obtains accommodation in a

hotel by means of registering at the facility for the temporary

occupancy of a room for the personal use of the individual by

paying a fee to the operator.

Section 2.  The act is amended by adding a section to read:  

Section 1770.10.  Hotel Room Rental Tax in Certain Third

Class Counties.--(a)  A county may, by ordinance, impose a tax

which shall be known as the hotel room rental tax on the

consideration received by each operator of a hotel within the

county from each transaction of renting a room or rooms to

accommodate transients. The tax shall be collected by the

operator from the patron of the room and paid over to the county

where the hotel is located as provided under this section.

(b)  The rate of the tax imposed under this section shall not

exceed five per centum.

(c)  The treasurer of each county electing to impose the tax

authorized under this section shall collect the tax and deposit

the revenues received from the tax in a special fund established

for that purpose. Subsequent to the deduction for administrative

costs established in subsection (f), the county shall distribute

to the recognized tourist promotion agency all revenues received

from the tax not later than sixty days after receipt of the tax

revenues. The revenues from the special fund shall be used by

the recognized tourist promotion agency for any or all of the

following purposes:

(1)  Convention promotion.

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

travel destination.

(3)  Marketing the area served by the agency as a business

travel destination.

(4)  Using all appropriate marketing tools to accomplish

these purposes, including, but not limited to, advertising,

publicity, publications, direct marketing, direct sales and

participation in industry trade shows.

(5)  Projects or programs that are directly and substantially

related to tourism within the county, augment and do not unduly

compete with private sector tourism efforts and improve and

expand the county as a destination market.

(6)  Any other tourism marketing or promotion program deemed

necessary by the recognized tourist promotion agency.

(d)  Each tax year for any tax imposed hereunder shall run

concurrently with the county's fiscal year.

(e)  An audited report on the income and expenditures

incurred by a recognized tourist promotion agency receiving any

revenues from the tax authorized under this section shall be

submitted annually by the recognized tourist promotion agency to

the county commissioners.

(f)  For the purposes of defraying costs associated with the

collection of the tax imposed hereunder and otherwise performing

its obligations under this section, the county is hereby

authorized to deduct and retain an administrative fee from the

taxes collected hereunder. Such administrative fee shall be

established by the county but shall not exceed in any tax year

the lesser of:

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

(2)  fifty thousand dollars ($50,000), which amount shall be

adjusted annually, beginning one year after the date of

enactment, by the the percentage growth in the Consumer Price

Index for All Urban Consumers as determined by the United States

Department of Labor.

(g)  As used in this section, the following words and phrases

shall have the meanings given to them in this subsection unless

the context clearly indicates otherwise:

"Consideration."  Receipts, fees, charges, rentals, leases,

cash, credits, property of any kind or nature or other payment

received by operators in exchange for or in consideration of the

use or occupancy by a transient of a room or rooms in a hotel

for a temporary period.

"County."  Any county of the third class having a population

under the 2010 Federal Decennial Census in excess of 430,000

residents but less than 440,000 residents.

"Hotel."  A hotel, motel, inn, guesthouse or other structure

which holds itself out by any means, including advertising,

license, registration with an innkeepers' group, convention

listing association, travel publication or similar association

or with a government agency, as being available to provide

overnight lodging for consideration to persons seeking temporary

accommodation; any place which advertises to the public at large

or any segment thereof that it will provide beds, sanitary

facilities or other space for a temporary period to members of

the public at large; or any place recognized as a hostelry. The

term does not include any portion of a facility that is devoted

to persons who have an established permanent residence or a

college or university student residence hall or any private

campground or any cabins, public campgrounds or other facilities

located on State land.

"Operator."  Any individual, partnership, nonprofit or

profit-making association or corporation or other person or

group of persons who maintain, operate, manage, own, have

custody of or otherwise possess the right to rent or lease

overnight accommodations in a building to the public for

consideration.

"Patron."  Any person who pays the consideration for the

occupancy of a room or rooms in a hotel.

"Permanent resident."  Any person who has occupied or has the

right to occupy a room or rooms in a hotel as a patron or

otherwise for a period exceeding thirty consecutive days.

"Recognized tourist promotion agency."  The nonprofit

corporation, organization, association or agency which is

engaged in planning and promoting programs designed to stimulate

and increase the volume of tourist, visitor and vacation

business within counties served by the agency as that term is

defined in the act of July 4, 2008 (P.L.621, No.50), known as

the "Tourism Promotion Act."

"Room."  A space in a building set aside for use and

occupancy by patrons, or otherwise, for consideration, having at

least one bed or other sleeping accommodations provided.

"Temporary resident."  Any person who has occupied or has the

right to occupy a room or rooms in a hotel as a patron or

otherwise for a period of time not exceeding thirty consecutive

days.

"Transaction."  The activity involving the obtaining by a

transient or patron of the use or occupancy of a hotel room from

which consideration emanates to the operator under an expressed

or implied contract.

"Transient."  Any person who obtains an accommodation in any

hotel for himself by means of registering at the facility for

the temporary occupancy of a room for the personal use of that

individual by paying to the operator of the facility a fee in

consideration therefor.

Section 3.  This act shall take effect in 60 days.