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| THE GENERAL ASSEMBLY OF PENNSYLVANIA |
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| HOUSE BILL |
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| INTRODUCED BY MOUL AND TALLMAN, MAY 24, 2011 |
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| REFERRED TO COMMITTEE ON TOURISM AND RECREATIONAL DEVELOPMENT, MAY 24, 2011 |
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| AN ACT |
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1 | Amending the act of August 9, 1955 (P.L.323, No.130), entitled, |
2 | as amended, "An act relating to counties of the first, third, |
3 | fourth, fifth, sixth, seventh and eighth classes; amending, |
4 | revising, consolidating and changing the laws relating |
5 | thereto; relating to imposition of excise taxes by counties, |
6 | including authorizing imposition of an excise tax on the |
7 | rental of motor vehicles by counties of the first class; and |
8 | providing for regional renaissance initiatives," in fiscal |
9 | affairs, further providing for authorization of three per |
10 | centum hotel tax in certain counties of the sixth class. |
11 | The General Assembly of the Commonwealth of Pennsylvania |
12 | hereby enacts as follows: |
13 | Section 1. Section 1770.7 of the act of August 9, 1955 |
14 | (P.L.323, No.130), known as The County Code, amended or added |
15 | December 22, 2000 (P.L.1019, No.142) and July 5, 2005 (P.L.38, |
16 | No.12), is amended to read: |
17 | Section 1770.7. Authorization of [Three] Five Per Centum |
18 | Hotel Tax.--(a) The county commissioners of any county of the |
19 | sixth class having a population under the 1990 Federal Decennial |
20 | Census in excess of 78,250 residents, but less than 79,000 |
21 | residents, and any county of the fifth class which as a result |
22 | of the 1990 Federal Decennial Census was such a county of the |
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1 | sixth class and as a result of the 2010 Federal Decennial Census |
2 | is reclassified as a county of the fifth class, may impose a |
3 | hotel tax not to exceed [three] five per centum of the |
4 | consideration received by each operator of a hotel within the |
5 | county from each transaction of renting a room or rooms to |
6 | transients. The tax shall be collected by the operator from the |
7 | patron of the room or rooms and paid over to the county as |
8 | herein provided. |
9 | (b) The provisions of subsection (b.1) notwithstanding, |
10 | county commissioners may by ordinance impose requirements for |
11 | keeping of records, the filing of tax returns and the time and |
12 | manner of collection and payment of tax. The county |
13 | commissioners may also impose by ordinance penalties and |
14 | interest for failure to comply with recordkeeping, filing, |
15 | collection and payment requirements. |
16 | (b.1) Each operator of a hotel within a county that imposes |
17 | the tax authorized under this section shall submit to a review |
18 | of hotel tax revenue. The review shall be conducted by the |
19 | county commissioners and shall consist, at a minimum, of |
20 | determining the total amount of consideration received by the |
21 | operator from transactions of renting a room or rooms to |
22 | transients during the period of review and the total amount of |
23 | hotel tax revenue collected. The county commissioners or their |
24 | duly authorized agents shall conduct the review of each operator |
25 | at least twice every twelve months and shall bear the costs of |
26 | the review. |
27 | (c) The [county commissioners of each county shall designate |
28 | the entity or agency responsible to collect and to enforce the |
29 | collection of the tax on their behalf. All revenues received |
30 | from the tax shall be deposited into a special fund which is to |
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1 | be established by the county's legally sanctioned and duly |
2 | designated Tourist Promotion Agency (TPA). The] treasurer of |
3 | each county that imposes the tax authorized under this section |
4 | shall collect the tax and deposit the revenues received from the |
5 | tax in a special fund established for that purpose. Subject to |
6 | the deduction of the administrative fee authorized by subsection |
7 | (e.2), the disposition of the revenues from the TPA hotel tax |
8 | fund shall be as follows: [seventy-five per centum of all |
9 | revenues received per annum shall be used by the TPA for the |
10 | promotion, advertising and marketing of tourism and special |
11 | events and for administrative costs. Twenty-five per centum of |
12 | all revenues received per annum shall be used by the county |
13 | commissioners for the purpose of economic development, historic |
14 | preservation and grants to local municipalities having police |
15 | departments. Any fees for administering the collection and |
16 | distribution of the tax shall be negotiated by the TPA and the |
17 | county commissioners.] |
18 | (1) Seventy-five per centum of all revenues received per |
19 | annum shall be used by the county's recognized TPA for the |
20 | promotion, advertising and marketing of tourism and special |
21 | events and for administrative costs. |
22 | (2) Twenty-five per centum of all revenues received per |
23 | annum shall be distributed as follows: |
24 | (i) Fifty per centum shall be used by the county |
25 | commissioners for the purposes of economic development and |
26 | historic preservation. |
27 | (ii) Fifty per centum shall be used by the county |
28 | commissioners for grants to municipalities that: |
29 | (A) have a municipal police department employing at least |
30 | two full-time police officers assigned to law enforcement duties |
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1 | who work a minimum of two hundred days per year; or |
2 | (B) are a member of a regional police department that |
3 | provides full-time police services to the municipality pursuant |
4 | to an agreement or contract. |
5 | [(d) The treasurer of each county electing to impose the tax |
6 | authorized under this section shall collect the tax and deposit |
7 | the revenues received from the tax in a special fund established |
8 | for that purpose.] |
9 | (d.1) Grants under subsection (c)(2)(ii) shall be |
10 | distributed to municipalities in proportion to the number of |
11 | hotel rooms within the municipality as a percentage of the total |
12 | number of hotel rooms in municipalities with police departments |
13 | under subsection (c)(2)(ii) as compiled by the recognized TPA |
14 | and certified by the county commissioners. Grants shall be used |
15 | for police and law enforcement purposes. Any portion of a grant |
16 | not used for police and law enforcement purposes shall be |
17 | returned to the county for the purposes of subsection (c)(2)(i). |
18 | (e) The tax year for a tax imposed under this section shall |
19 | run concurrently with the calendar year. |
20 | (e.1) An audited report on the income and expenditures |
21 | incurred by a tourist promotion agency receiving any revenues |
22 | from the tax authorized under this section shall be submitted |
23 | annually by the tourist promotion agency to the county |
24 | commissioners. |
25 | (e.2) The county may deduct and retain an administrative fee |
26 | from the taxes collected under this section. The administrative |
27 | fee established by the county may not exceed in any tax year the |
28 | lesser of: |
29 | (1) four and one-half per centum of all taxes collected |
30 | under this section; or |
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1 | (2) ninety-five thousand dollars ($95,000), which amount |
2 | shall be adjusted biannually, beginning two years after the |
3 | effective date of this subsection, by the percentage growth in |
4 | the Consumer Price Index for All Urban Consumers. |
5 | (e.3) Revenue collected from the fee imposed under |
6 | subsection (e.2) shall be used for the following purposes: |
7 | (1) Defraying the costs associated with the collection and |
8 | administration of the tax. |
9 | (2) Defraying the costs of the review required under |
10 | subsection (b.1). |
11 | (f) As used in this section, the following words and phrases |
12 | shall have the meanings given to them in this subsection: |
13 | "Consideration." Receipts, fees, charges, rentals, leases, |
14 | cash, credits, property of any kind or nature, or other payment |
15 | received by operators in exchange for or in consideration of the |
16 | use or occupancy by a transient of a room or rooms in a hotel |
17 | for any temporary period. |
18 | "Hotel." A hotel, motel, inn, guest house or other structure |
19 | which holds itself out by any means, including advertising, |
20 | license, registration with an innkeepers' group, convention |
21 | listing association, travel publication or similar association |
22 | or with a government agency, as being available to provide |
23 | overnight lodging or use of facility space for consideration to |
24 | persons seeking temporary accommodation; any place which |
25 | advertises to the public at large or any segment thereof that it |
26 | will provide beds, sanitary facilities or other space for a |
27 | temporary period to members of the public at large; or any place |
28 | recognized as a hostelry. The term does not include any portion |
29 | of a facility that is devoted to persons who have an established |
30 | permanent residence or a college or university student residence |
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1 | hall. |
2 | "Occupancy." The use or possession or the right to the use |
3 | or possession by any person other than a permanent resident of |
4 | any room in a hotel for any purpose or the right to the use or |
5 | possession of the furnishings or to the services accompanying |
6 | the use and possession of the room. |
7 | "Operator." An individual, partnership, nonprofit or profit- |
8 | making association or corporation or other person or group of |
9 | persons who maintain, operate, manage, own, have custody of or |
10 | otherwise possess the right to rent or lease overnight |
11 | accommodations in a hotel to the public for consideration. |
12 | "Patron." A person who pays the consideration for the |
13 | occupancy of a room or rooms in a hotel. |
14 | "Permanent resident." A person who has occupied or has the |
15 | right to occupancy of a room or rooms in a hotel as a patron or |
16 | otherwise for a period exceeding thirty consecutive days. |
17 | "Room." A space in a hotel set aside for use and occupancy |
18 | by patrons, or otherwise, for consideration, having at least one |
19 | bed or other sleeping accommodation in a room or group of rooms. |
20 | "Tourist Promotion Agency (TPA)." An organization, agency or |
21 | corporation designated to be such by the board of commissioners |
22 | as of January 1, 2000, of the county in which the tax is |
23 | imposed. The TPA shall be duly established, designated and |
24 | recognized as the county's TPA in accordance with and pursuant |
25 | to the act of [April 28, 1961 (P.L.111, No.50), known as the |
26 | "Tourist Promotion Law."] July 4, 2008 (P.L.621, No.50), known |
27 | as the "Tourism Promotion Act." |
28 | "Transaction." The activity involving the obtaining by a |
29 | transient or patron of the use or occupancy of a hotel room from |
30 | which consideration is payable to the operator under an express |
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1 | or an implied contract. |
2 | "Transient." An individual who obtains accommodation in a |
3 | hotel by means of registering at the facility for the temporary |
4 | occupancy of a room for the personal use of the individual by |
5 | paying a fee to the operator. |
6 | Section 2. This act shall take effect in 60 days. |
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