PRINTER'S NO. 2575
No. 1944 Session of 1984
INTRODUCED BY FLICK, MANDERINO, SCHULER, RYAN, HERSHEY, ITKIN,
DEAL, D. W. SNYDER, GREENWOOD, McVERRY, MERRY, HALUSKA,
BOYES, SCHEETZ, E. Z. TAYLOR, BUNT, SEMMEL, SALVATORE,
LASHINGER, AFFLERBACH, LINTON, JOHNSON AND ROBBINS,
FEBRUARY 21, 1984
REFERRED TO COMMITTEE ON LOCAL GOVERNMENT, FEBRUARY 21, 1984
AN ACT
1 Amending the act of August 9, 1955 (P.L.323, No.130), entitled
2 "An act relating to counties of the third, fourth, fifth,
3 sixth, seventh and eighth classes; amending, revising,
4 consolidating and changing the laws relating thereto,"
5 authorizing the imposition of a tax on hotel room rentals;
6 and providing for use of the proceeds.
7 The General Assembly of the Commonwealth of Pennsylvania
8 hereby enacts as follows:
9 Section 1. The act of August 9, 1955 (P.L.323, No.130),
10 known as The County Code, is amended by adding a section to
11 read:
12 Section 1770.2. Hotel Room Rental.--(a) The following words
13 and phrases when used in this section shall have the meanings
14 given to them in this subsection unless the context clearly
15 indicates otherwise:
16 "Consideration." Receipts, fees, charges, rentals, leases,
17 cash, credits, property of any kind or nature, or other payment
18 received by operators in exchange for or in consideration of the
1 use or occupancy by a transient of a room or rooms in a hotel
2 for any temporary period.
3 "Hotel." A hotel, motel, inn, guest house or other building
4 located within the taxing jurisdiction which holds itself out by
5 any means including advertising, license, registration with any
6 innkeepers' groups, convention listing association, travel
7 publication or similar association or with any government agency
8 as being available to provide overnight lodging or use of
9 facility space for consideration to persons seeking temporary
10 accommodation; any place which advertises to the public-at-large
11 or any segment thereof that it will provide beds, sanitary
12 facilities or other space for a temporary period to members of
13 the public-at-large; any place recognized as a hostelry:
14 Provided, That portions of such facility which are devoted to
15 persons who have established permanent residence shall not be
16 included in this definition.
17 "Occupancy." The use or possession or the right to the use
18 or possession by any person other than a permanent resident of
19 any room in a hotel for any purpose or the right to the use or
20 possession of the furnishings or to the services accompanying
21 the use and possession of the room.
22 "Operator." Any individual, partnership, nonprofit or
23 profit-making association or corporation or other person or
24 group of persons who maintain, operate, manage, own, have
25 custody of, or otherwise possess the right to rent or lease
26 overnight accommodations in any hotel to the public for
27 consideration.
28 "Patron." Any person who pays the consideration for the
29 occupancy of a room or rooms in a hotel.
30 "Permanent resident." Any person who has occupied or has the
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1 right to occupancy of any room or rooms in a hotel as a patron
2 or otherwise for a period exceeding thirty consecutive days.
3 "Recognized tourist promotion agency." The nonprofit
4 corporation, organization, association or agency which is and
5 has been engaged in planning and promoting programs designed to
6 stimulate and increase the volume of tourist, visitor and
7 vacation business within counties served by such agencies as
8 that term is defined in the act of April 28, 1961 (P.L.111,
9 No.50), known as the "Tourist Promotion Law," and which
10 particular nonprofit corporation, organization, association or
11 agency heretofore has been recognized by the Department of
12 Commerce all in accordance with the terms of the "Tourist
13 Promotion Law."
14 "Room." A space in a hotel set aside for use and occupancy
15 by patrons, or otherwise, for consideration, having at least one
16 bed or other sleeping accommodation provided therein.
17 "Temporary." A period of time not exceeding thirty
18 consecutive days.
19 "Transaction." The activity involving the obtaining by a
20 transient or patron of the use or occupancy of a hotel room from
21 which consideration emanates to the operator under an express or
22 an implied contract.
23 "Transient." Any individual who obtains accommodation in any
24 hotel for himself by means of registering at the facility for
25 the temporary occupancy of any room for the personal use of that
26 individual by paying to the operator of the facility a fee in
27 consideration therefor.
28 (b) The county commissioners in any county may impose an
29 excise tax not to exceed three per centum on the consideration
30 received by each operator of a hotel within the county from each
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1 transaction of renting a room or rooms to accommodate
2 transients. The tax shall be collected by the operator from the
3 patron of the room and paid over to the county as herein
4 provided.
5 (c) The treasurer of each county electing to impose the tax
6 authorized under this section is hereby directed to collect the
7 tax and to deposit the revenues received from the tax in a
8 special fund established solely for purposes of travel and
9 tourism promotion and advertising related to such promotion. The
10 treasurer is hereby authorized to establish rules and
11 regulations concerning the collection of the tax. The payment of
12 such funds plus interest accrued shall be made by the treasurer
13 to the recognized tourist promotion agency operating in the
14 county on a monthly basis as follows: all moneys collected each
15 month plus interest less any direct or indirect costs
16 attributable to the collection of the tax shall be paid by the
17 treasurer to the recognized tourist promotion agency by the
18 fifteenth day of the month following collection.
19 (d) Expenditures from the fund established pursuant to
20 subsection (c) shall be used by the designated tourist promotion
21 agency primarily for tourist promotion marketing activities
22 outside of the county served by the designated tourist promotion
23 agency and said funds shall be limited to:
24 (1) Marketing the area served by the agency as a leisure
25 travel destination.
26 (2) Marketing the area served by the agency as a convention
27 and business travel destination.
28 (3) Marketing the area served by the agency to the public as
29 a whole for use of its tourist and convention facilities.
30 (4) Using all appropriate marketing tools to accomplish
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1 these purposes, including advertising, publicity, publications,
2 direct marketing, direct sales, participation in travel trade
3 shows, etc.
4 (e) In any county electing to impose the tax authorized
5 under this section, the designated tourist promotion agency
6 shall, prior to the county commissioners enacting the tax,
7 submit a written proposal and annual budget to the commissioners
8 describing how the funds received from the room tax would be
9 spent by the agency in compliance with subsection (d).
10 (f) Each tax year for any tax imposed under this section
11 shall run concurrently with the calendar year.
12 (g) An audited report on the income and expenditures
13 incurred by the tourist promotion agency receiving funds from
14 the excise tax on hotel room rentals shall be made annually by
15 the tourist promotion agency to the Board of County
16 Commissioners.
17 Section 2. This act shall take effect immediately.
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