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 19840H1944B2575 - 2 -
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 19840H1944B2575 - 3 -
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 19840H1944B2575 - 4 -
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. A23L16RLC/19840H1944B2575 - 5 -