H1177B3870A08961 MSP:JSL 06/29/14 #90 A08961







Printer's No. 3870


1Amend Bill, page 1, line 5, by inserting after "counties"

2 and providing for authorization of 5% hotel tax in certain 
3counties of the fourth class

4Amend Bill, page 6, line 12, by striking out "a section" and 

6 sections

7Amend Bill, page 8, line 18, by striking out "2010" and 

9 most recent

10Amend Bill, page 10, line 9, by striking out all of said line
11and inserting

12§ 8723. Hotel room rental tax in certain fourth class counties.

13(a) Authorization--The county commissioners of any county of
14the fourth class having a population under the most recent
15Federal decennial census in excess of 149,000 residents, but
16less than 152,000 residents, may impose a hotel tax not to
17exceed 5% of the consideration received by each operator of a
18hotel within the county from each transaction of renting a room
19or rooms to transients. The tax shall be collected by the
20operator from the patron of the room or rooms and paid over to
21the county as provided under this section.

22(b) Records.--The provisions of subsection (c)
23notwithstanding, county commissioners may by ordinance impose
24requirements for keeping of records, the filing of tax returns
25and the time and manner of collection and payment of tax. The
26county commissioners may also impose by ordinance penalties and
27interest for failure to comply with recordkeeping, filing,
28collection and payment requirements.

29(c) Audit.--Each operator of a hotel within a county that
30imposes the tax authorized under this section shall submit to an
31audit of hotel tax revenue. The audit shall be conducted by the
32county commissioners and shall consist, at a minimum, of
33determining the total amount of consideration received by the

1operator from transactions of renting a room or rooms to
2transients during the period being audited and the total amount
3of hotel tax revenue collected. The county commissioners or
4their duly authorized agents shall conduct at least one audit
5annually and shall bear the costs of the audit.

6(d) (Reserved).

7(e) Collection, deposit and disposition.--The treasurer of
8each county that imposes the tax authorized under this section
9shall collect the tax and deposit the revenues received from the
10tax in a special fund established for that purpose. Subject to
11the deduction of the administrative fee authorized by subsection
12(h), the disposition of the revenues from the special fund shall
13be as follows:

14(1) Seventy-five percent of all revenues received per
15annum shall be used by the county's recognized TPA for the
16promotion, advertising and marketing of tourism and special
17events and for administrative costs.

18(2) Twenty-five percent of all revenues received per
19annum shall be distributed as follows:

20(i) Fifty percent shall be used by the county
21commissioners for the purposes of economic development,
22historic preservation and the arts. The county 
23commissioners shall use 10% of the funds received under 
24this subparagraph for grants to municipalities that each 
25have at least 20,000 residents.

26(ii) Fifty percent shall be used by the county
27commissioners for grants to municipalities that:

28(A) have a municipal police department employing
29at least two full-time police officers assigned to
30law enforcement duties who work a minimum of 200 days
31per year; or

32(B) are a member of a regional police department
33that provides full-time police services to the
34municipality pursuant to an agreement or contract.

35(iii) Municipalities receiving grants under
36subparagraph (ii) must meet or have met the eligibility
37requirements under subparagraph (ii)(A) or (B) for a
38minimum of two years prior to receiving the grant.

39(f) Grants.--Grants under subsection (e)(2)(ii) shall be
40distributed to municipalities in proportion to the number of
41hotel rooms within the municipality as a percentage of the total
42number of hotel rooms in municipalities with police departments
43under subsection (e)(2)(ii) as compiled by the recognized TPA
44and certified by the county commissioners. Grants shall be used
45for police and law enforcement purposes. Any portion of a grant
46not used for police and law enforcement purposes shall be
47returned to the county for the purposes of subsection (d)(2)(i).

48(g) Tax year.--The tax year for a tax imposed under this
49section shall run concurrently with the calendar year.

50(h) Audited report.--An audited report on the income and
51expenditures incurred by a TPA receiving any revenues from the

1tax authorized under this section shall be submitted annually by
2the TPA to the county commissioners.

3(i) Administrative fee.--The county may deduct and retain an
4administrative fee from the taxes collected under this section.
5The administrative fee established by the county may not exceed
6in any tax year the lesser of:

7(1) four and one-half percent of all taxes collected
8under this section; or

9(2) ninety-five thousand dollars, which amount shall be
10adjusted biannually, beginning two years after the effective
11date of this subsection, by the percentage growth in the
12Consumer Price Index for All Urban Consumers.

13(j) Use of fee.--Revenue collected from the fee imposed
14under subsection (i) shall be used for the following purposes:

15(1) Defraying the costs associated with the collection
16and administration of the tax.

17(2) Defraying the costs of the audit required under
18subsection (c).

19(k) Definitions.--As used in this section, the following
20words and phrases shall have the meanings given to them in this
21subsection unless the context clearly indicates otherwise:

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

27"Hotel." A hotel, motel, inn, guest house or other structure
28which holds itself out by any means, including advertising,
29license, registration with an innkeepers' group, convention
30listing association, travel publication or similar association
31or with a government agency, as being available to provide
32overnight lodging or use of facility space for consideration to
33persons seeking temporary accommodation; any place which
34advertises to the public at large or any segment thereof that it
35will provide beds, sanitary facilities or other space for a
36temporary period to members of the public at large; or any place
37recognized as a hostelry. The term does not include any portion
38of a facility that is devoted to persons who have an established
39permanent residence or a college or university student residence

41"Occupancy." The use or possession or the right to the use
42or possession by any person other than a permanent resident of
43any room in a hotel for any purpose or the right to the use or
44possession of the furnishings or to the services accompanying
45the use and possession of the room.

46"Operator." An individual, partnership, nonprofit or profit-
47making association or corporation or other person or group of
48persons who maintain, operate, manage, own, have custody of or
49otherwise possess the right to rent or lease overnight
50accommodations in a hotel to the public for consideration.

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

1occupancy of a room or rooms in a hotel.

2"Permanent resident." A person who has occupied or has the
3right to occupancy of a room or rooms in a hotel as a patron or
4otherwise for a period exceeding thirty consecutive days.

5"Room." A space in a hotel set aside for use and occupancy
6by patrons, or otherwise, for consideration, having at least one
7bed or other sleeping accommodation in a room or group of rooms.

8"Tourist Promotion Agency (TPA)." An organization, agency or
9corporation designated to be such by the board of commissioners
10as of January 1, 2000, of the county in which the tax is
11imposed. The TPA shall be duly established, designated and
12recognized as the county's TPA in accordance with and pursuant
13to the act of July 4, 2008 (P.L.621, No.50), known as the
14"Tourism Promotion Act."

15"Transaction." The activity involving the obtaining by a
16transient or patron of the use or occupancy of a hotel room from
17which consideration is payable to the operator under an express
18or an implied contract.

19"Transient." An individual who obtains accommodation in a
20hotel by means of registering at the facility for the temporary
21occupancy of a room for the personal use of the individual by
22paying a fee to the operator.

23Section 4. This act shall take effect as follows:

24(1) The addition of 53 Pa.C.S. § 8723 shall take effect

26(2) This section shall take effect immediately.

27(3) The remainder of this act shall take effect in 60


See A08961 in
the context
of HB1177