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PRIOR PRINTER'S NOS. 940, 1562
PRINTER'S NO. 1842
THE GENERAL ASSEMBLY OF PENNSYLVANIA
HOUSE BILL
No.
794
Session of
2015
INTRODUCED BY GILLESPIE, SCHREIBER, SAYLOR, MOUL, McNEILL,
A. HARRIS, LONGIETTI, MASSER, MURT, SCHWEYER, PHILLIPS-HILL,
DIAMOND, KLUNK, SCHLOSSBERG, D. COSTA, ROZZI, COHEN, RADER,
GROVE, SONNEY, REGAN, IRVIN, PAYNE, TALLMAN, HARHAI, JAMES,
MAHONEY, KIRKLAND AND DUSH, MARCH 13, 2015
AS AMENDED ON SECOND CONSIDERATION, HOUSE OF REPRESENTATIVES,
JUNE 17, 2015
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, repealing provisions relating to authorization of
excise tax and authorization of hotel tax; and providing for
hotel room rental tax in third through eighth class counties
and for certification of recognized tourist promotion
agencies.
The General Assembly of the Commonwealth of Pennsylvania
hereby enacts as follows:
Section 1. Sections 1770.2 and 1770.6 of the act of August
9, 1955 (P.L.323, No.130), known as The County Code, are
repealed:
[Section 1770.2. Authorization of Excise Tax.--(a) The
county commissioners of any county which has a recognized
tourist promotion agency designated to act within the county may
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impose an excise tax not to exceed three per centum of the
consideration received by each operator of a hotel within the
county from each transaction of renting a room or rooms to
transients. The tax shall be collected by the operator from the
patron of the room or rooms and paid over to the county as
herein provided.
(b) The county commissioners may by ordinance impose
requirements for keeping of records, the filing of tax returns
and the time and manner of collection and payment of tax. The
county commissioners may also impose by ordinance penalties and
interest for failure to comply with recordkeeping, filing,
collection and payment requirements.
(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. After deducting from the fund any direct or
indirect costs attributable to collection of the tax, the county
shall distribute to the recognized tourist promotion agency
designated to act within the county 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,
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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) The tax year for a tax imposed under this section shall
run concurrently with the calendar 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.
(e.1) Notwithstanding any other provision of subsection (b)
or any other provision of law to the contrary, in counties 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, a penalty of one and one-half per centum per
month shall be imposed for failure to timely remit the tax
authorized by this section. In addition to other remedies
available for collection of debts, the county may also file a
lien upon the hotel in the name of and for the use of the county
as provided by law for municipal claims.
(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
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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
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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.
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"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 1770.6. Authorization of Hotel Tax.--(a) Except as
provided for in section 1770.7, the county commissioners of any
county may impose an excise tax on the consideration received by
each operator of a hotel, as defined by this section, from each
transaction of renting a room or rooms to accommodate
transients. If levied, the tax shall be collected by the
operator from the patron of the room and paid over to the county
and shall be known as the hotel room rental tax.
(b) The rate of the tax imposed under this section shall not
exceed three 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 (e), 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
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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.
(d.1) 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.
(e) For the purposes of defraying the 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) forty thousand dollars ($40,000), which amount shall be
adjusted biannually, beginning two years after the date of
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enactment, by the percentage growth in the Consumer Price Index
for All Urban Consumers as determined by the United States
Department of Labor.
(f) Definitions.--As used in this section, the following
words and phrases shall have the meanings given to them in this
subsection:
"Bed and breakfast" or "homestead." A public accommodation
consisting of a private residence, which contains ten or fewer
bedrooms, used for providing overnight accommodations to the
public and in which breakfast is the only meal served and is
included in the charge for the room.
"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 of the third class through the eighth
class which on the effective date of this section does not have
the authority to levy a hotel occupancy or room rental tax.
"Hotel." A hotel, motel, bed and breakfast, homestead, 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
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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.
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"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.
"Treasurer." The elected treasurer of the county or, if
there is no elected treasurer of the county, such other official
or agent of the county as may be designated by the county to
collect and account for the tax authorized by this section.]
Section 2. The act is amended by adding sections to read:
Section 1770.10. Hotel Room Rental Tax in Third through
Eighth C lass 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 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 (g), 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
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revenues.
(d) The revenues from the special fund shall be used by the
recognized tourist promotion agency for any of the following
purposes:
(1) Marketing the area served by the agency as a leisure
travel destination.
(2) Marketing the area served by the agency as a business,
convention or meeting travel destination.
(3) Using all appropriate marketing tools to accomplish
these purposes, including, but not limited to, advertising,
publicity, publications, direct marketing, sales, technology and
participation in industry trade shows that attract tourists to
the area served by the agency.
(4) Programs or grants that are directly and substantially
related to tourism within the county, augment and do not compete
with private sector tourism efforts and improve and expand the
county as a destination market as deemed necessary by the
recognized tourist promotion agency.
(5) Any other tourism marketing or promotion program or
project that does not compete with private sector tourism
efforts as deemed necessary by the recognized tourist promotion
agency.
(e) Each taxable year for any tax imposed under this section
shall run concurrently with the county's fiscal year.
(f) An audited report or financial statement, as determined
by the county in consultation with the recognized tourist
promotion agency, 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
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county commissioners.
(g) For the purposes of defraying the costs associated with
the collection of the tax imposed under this section and
otherwise performing its obligations under this section, the
county may deduct and retain an administrative fee from the
taxes collected under this section. The administrative fee shall
be established by the county but shall not exceed five per
centum in any taxable year.
(h) A penalty of one and one-half per centum per month shall
be imposed for failure to timely collect and remit the tax
authorized by this section. In addition to other remedies
available for collection of debts, the county may file a lien
upon the hotel in the name of the county and for the use of the
county as provided by law.
(i) The following words and phrases when used in this
section shall have the meanings given to them in this subsection
unless the context clearly indicates otherwise:
"Bed and breakfast" or "homestead." A public accommodation
consisting of a private residence, which contains ten or fewer
bedrooms, used for providing overnight accommodations to the
public and in which breakfast is the only meal served and is
included in the charge for the room.
"Cabin." A permanent structure with beds located on a
campground on State land or private property that is available
to provide overnight lodging for consideration to persons
seeking temporary accommodations. THE TERM DOES NOT INCLUDE
YURTS OR WALLED TENTS.
"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
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use or occupancy by a transient of a room or rooms in a hotel
for a temporary period.
"County." Any county of the third through eighth class that
was authorized to levy a hotel occupancy or room rental tax
under the former section 1770.2 or 1770.6.
"Hotel." A hotel, motel, inn, guesthouse, rooming house, bed
and breakfast, homestead 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;
any place recognized as a hostelry; or any cabins on campgrounds
located on State land or private property. The term does not
include any charitable institution, or portion of a facility
that is devoted to persons who have an established permanent
residence or a college or university student residence hall
currently occupied by students enrolled in a degree program, an
educational or religious institution summer camp for children,
hospital , nursing home or part of a campground that is not a
cabin.
"Marketing." An action by a recognized tourism promotion
agency that includes, but is not limited to, promoting and
encouraging visitors to visit a specific county, counties or
geographic region.
"Occupancy." The use or possession or the right to the use
or possession by any person other than a permanent resident of
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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." 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." 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 a county and certified by the county as of the
effective date of this subsection or under section 1770.11.
"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.
"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." 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
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paying a fee to the operator.
Section 1770.11. Certification of Recognized Tourist
Promotion Agencies.-- (a) A county may certify a nonprofit
corporation, organization, association or agency to serve as the
county's recognized tourist promotion agency. The county may not
have more than one recognized tourist promotion agency.
(b) (1) A county must certify a recognized tourist
promotion agency under subsection (a) by proper resolution of
the governing body of the county, concurred in by resolution of
the governing bodies of cities, boroughs, towns or townships
within the county which have an aggregate of more than fifty per
centum of the total population of the county as determined by
the most recently completed Federal decennial census.
(2) A recognized tourist promotion agency shall operate
until that agency has dissolved as an entity, withdrawn its
certification or has been decertified by the county under
subsection (c).
(c) (1) Notwithstanding any other provision of law, a
county may decertify a recognized tourist promotion agency by
proper resolution of the governing body of a county, concurred
in by resolution of the governing bodies of cities, boroughs,
towns or townships within the county which have an aggregate of
more than sixty-five per centum of the total population of the
county as determined by the most recently completed Federal
decennial census.
(2) The county shall hold at least one public hearing on
decertification no less than seven days before a meeting to
adopt a resolution under this subsection.
(3) This subsection shall apply to recognized tourist
promotion agencies, regardless of the date on which they were
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recognized under the act of July 4, 2008 (P.L.621, No.50), known
as the "Tourism Promotion Act," or certified by the county under
this section.
Section 3. Nothing in this act shall be construed to require
a county that has imposed a tax under the former section 1770.2
or 1770.6 OF THE ACT to enact a new ordinance to impose the tax
under section 1770.10 OF THE ACT if all of the following apply:
(1) The tax rate in the ordinance imposing the tax under
the former section 1770.2 or 1770.6 OF THE ACT has not
changed.
(2) The ordinance imposing the tax under the former
section 1770.2 or 1770.6 OF THE ACT is otherwise consistent
with section 1770.10 OF THE ACT.
Section 4. This act shall take effect immediately.
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