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Senate of Pennsylvania
Session of 2017 - 2018 Regular Session

MEMORANDUM

Posted:	February 21, 2017 11:50 AM
From:	Senator Lawrence M. Farnese, Jr.
To:	All Senate members
Subject:	Hotel Occupancy Tax for the Short-term Rental Online Marketplace

In the near future, I plan to reintroduce Senate Bill 1190 that would amend the Tax Reform Code of 1971 to clarify that the statewide hotel occupancy tax applies to short-term rentals through Airbnb and similar online marketplaces. Booking agents, such as Airbnb, provide short-term rental services like hotels, but do not pay the 6% state hotel tax on these rentals. This legislation will allow us to keep up with the ever-expanding digital marketplace, and make sure visitors and renters are protected. Specifically, my legislation will amend the definition of “hotel” to clarify that units temporarily rented for occupancy are generally subject to the hotel occupancy tax, even if the dwelling is ordinarily used for household living. This legislation also clarifies the duty to collect and remit the hotel occupancy tax. Currently, the burden is on the host to collect and remit taxes on their rentals, though many individuals are unaware of this duty. My legislation would require that the booking agent, not the host, is responsible for collecting and remitting the tax. Hotel occupancy taxes are an important stream of revenue, and this legislation ensures that everyone is paying their fair share toward the public services and goods that attract visitors to Pennsylvania. Previous cosponsors included Senators Costa, Fontana, Hughes, Schwank and Stefano. Please join me in co-sponsoring this important legislation.

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