1Amending Title 53 (Municipalities Generally) of the Pennsylvania
2Consolidated Statutes, further providing for initiative of
3electors seeking consolidation or merger with new home rule
4charter<-.; providing for a hotel room rental tax in certain 
5third class counties; further providing for investment<- 
6authority funds; providing for authorization of A hotel tax 
7in certain counties of the fourth class, for second class 
8township hotel room rental tax and for local option cigarette 
9tax in school districts of the first class and for local 
10sales tax revenues in cities of the first class; and making 
11an editorial change.

12The General Assembly of the Commonwealth of Pennsylvania
13hereby enacts as follows:

14Section 1. Section 735.1(c) <-735.1(a), (c), (d)(3), (e)(3), 
15(g)(1) and (l)(6) and (7) of Title 53 of the Pennsylvania 
16Consolidated Statutes are amended and subsection (l) is amended 
17by adding a paragraph to read:

18§ 735.1. Initiative of electors seeking consolidation or merger
19with new home rule charter.

<-20(a) General rule.--In order for a commission and
21consolidation or merger proceedings to be initiated by petition
22of electors, petitions containing signatures of at least 5% of

1the number of electors voting for the office of Governor in the
2last gubernatorial general election in each municipality
3proposed to be consolidated or merged shall be filed with the
4county board of elections of the county in which the
5municipality, or the greater portion of its territory, is
6located. The petition shall set forth:

7(1) The name of the municipality from which the signers
8of the petition were obtained.

9(2) The names of the municipalities proposed to be
10consolidated or merged.

11(3) An estimated cost of the study commission.

12(4) The number of persons to compose the commission.

13(5) The petition question which shall read as follows:

14Shall a Government Study Commission of (seven, nine
15or eleven) members be elected to study the issue of
16consolidation or merger of (municipalities to be
17consolidated or merged); to provide a recommendation
18on consolidation or merger; to consider the
19advisability of the adoption of a new home rule
20charter; and to draft a new home rule charter, if
21recommended in the report of the commission?

22(6) The petition shall also include the following
23statement:

24Only municipalities voting in the affirmative on the
25question will be held responsible for the costs of
26the study commission.

27* * *

<-28[(c) Contents.--A petition shall set forth:

29(1) The name of the municipality from which the signers
30of the petition were obtained.

1(2) The names of the municipalities proposed to be
2consolidated or merged.

<-3(2.1) An estimated cost of the study commission.

4(3) The number of persons to compose the commission.

5(4) The petition question which shall read as follows:

6Shall a Government Study Commission of (seven, nine
7or eleven) members be elected to study the issue of
8consolidation or merger of (municipalities to be
9consolidated or merged); to provide a recommendation
10on consolidation or merger; to consider the
11advisability of the adoption of a new home rule
12charter; and to draft a new home rule charter, if
13recommended in the report of the commission?<-]

<-14(5) The petition shall also include the following
15statement:

16Only municipalities voting in the affirmative on the
17question will be held responsible for the costs of
18the study commission.

19(d) Filing of petition and duty of election board.--

20* * *

21(3) At the next general, municipal or primary election
22occurring not less than the 13th Tuesday after the filing of
23the petition with the county board of elections, it shall
24cause the appropriate question and statement listed under 
<-25subsection (c)(4) and (5) subsection (a)(5) and (6) to be
26submitted to the electors of each of the municipalities
27proposed to be consolidated or merged in the same manner as
28other questions are submitted under the act of June 3, 1937 
29(P.L.1333, No.320), known as the Pennsylvania Election Code.

30(e) Election of members of commission.--

1* * *

2(3) Each elector shall be instructed to vote on the
3question and, regardless of the manner of his vote on the
4question, to vote for the designated number of members of the
5commission who shall serve if the question is or has been
6determined in the affirmative by the majority of the whole of 
7those voting in all the municipalities impacted by the 
8consolidation or merger.

9* * *

10(g) Results of election.--

11(1) The result of the votes cast for and against the
12question as to the election of a commission and consolidation
13and merger proceedings shall be returned by the election
14officers, and a canvass of the election had, as is provided
15by law in the case of other public questions put to the
16electors. The votes cast for members of the commission shall
17be counted and the result returned by the county board of
18electors of the county in which the municipality, or the
19greater portion of its territory, is located, and a canvass
20of the election had, as is provided by law in the case of
21election of members of municipal councils or boards. If a 
22majority of the whole in the municipalities proposed to be 
23consolidated or merged vote in the affirmative on the 
24question, then the commission shall be formed to study the 
25issue of consolidation or merger and to make recommendations 
26as set forth in the question. The designated number of
27candidates receiving the greatest number of votes shall be
28elected and shall constitute the commission. If a majority of
29[those] the whole in the municipalities voting on the
30question vote against the election of the commission, none of

1the candidates shall be elected. If two or more candidates
2for the last seat shall be equal in number of votes, they
3shall draw lots to determine which one shall be elected.

4* * *

5(l) Compensation, personnel and commission budget.--

6* * *

7(6) No later than 15 days after the submission of a
8budget in accordance with paragraphs (4) or (5), a joint
9public hearing of the commission and the governing bodies of
10the municipalities shall be held. The governing bodies of the
11municipalities to be consolidated or merged may, by
12agreement, modify any budget submitted by the commission. A
13governing body of a municipality to be consolidated or merged
14may approve appropriations to the commission in conformity
15with its share of the modified budget as determined in
16accordance with paragraph (7) or (7.1). Any unreasonable
17modification of the budget may be subject to an action as
18provided in paragraph (8) in the court of common pleas of any
19county wherein a municipality to be consolidated or merged
20lies.

21(7) [The] If a majority in each of the municipalities to 
22be consolidated or merged vote in favor of establishing a 
23commission, the municipalities [to be consolidated or merged]
24may, by agreement, determine the share that each municipality
25shall appropriate to fund the estimated budget of the
26commission. If no agreement as to the respective amount that
27each municipality shall appropriate is reached, each
28municipality shall appropriate funds equal to its pro rata
29share of the total estimated budget of the commission based
30upon its share of population to the total population of the

1municipalities to be consolidated or merged.

2(7.1) When a commission is formed to study consolidation 
3or merger by a vote of the whole in the municipalities 
4considering the question, the municipalities that vote in the 
5affirmative shall be responsible for funding the budget of 
6the commission. Any municipalities that vote in the negative 
7on the question shall not be responsible for the budget costs 
8of the commission.

9* * *

10Section 2. Section 5611(d) of Title 53 is amended by adding<-
11a paragraph to read:

12§ 5611. Investment of authority funds.

13* * *

14(d) Types.--Authorized types of investments for authority
15funds shall be:

16* * *

17(7) Commercial paper rated in the highest rating
18category, without reference to a subcategory, by a rating
19agency. This paragraph shall only apply to an airport
20authority board in a county of the second class.

21* * *

<-22Section 2 3. The heading of section 8721 of Title 53 is
23amended to read:

24§ 8721. Hotel room rental in <-certain counties of the second 
25class and second class A.

26* * *

27Section 3 4. Title 53 is amended by adding a section<-
28sections to read:

29§ 8722. Hotel room rental tax in certain third class counties.

30(a) General rule.--A county may, by ordinance, impose a tax

1which shall be known as a hotel room rental tax on the

2consideration received by each operator of a hotel within the

3county from each transaction of renting a room or rooms to

4accommodate transients. The tax shall be collected by the

5operator from the patron of the room and paid over to the county

6where the hotel is located as provided under this section.

7(b) Rate.--The rate of the tax imposed under this section
8shall not exceed 5%.

9(c) Collection.--The treasurer of each county electing to
10impose the tax authorized under this section shall collect the
11tax and deposit the revenues received from the tax in a special
12fund established for that purpose. Subsequent to the deduction
13for administrative costs established in subsection (f), the
14county shall distribute to the recognized tourist promotion
15agency all revenues received from the tax not later than 60 days
16after receipt of the tax revenues. The revenues from the special
17fund shall be used by the recognized tourist promotion agency
18for any or all of the following purposes:

19(1) Convention promotion.

20(2) Marketing the area served by the agency as a leisure

21travel destination.

22(3) Marketing the area served by the agency as a
23business travel destination.

24(4) Using all appropriate marketing tools to accomplish

25these purposes, including, but not limited to, advertising,

26publicity, publications, direct marketing, direct sales and

27participation in industry trade shows.

28(5) Projects or programs that are directly and
29substantially related to tourism within the county, augment
30and do not unduly compete with private sector tourism efforts

1and improve and expand the county as a destination market.

2(6) Any other tourism marketing or promotion program
3deemed necessary by the recognized tourist promotion agency.

4(d) Tax year.--Each tax year for any tax imposed under this
5section shall run concurrently with the county's fiscal year.

6(e) Report.--An audited report on the income and
7expenditures incurred by a recognized tourist promotion agency
8receiving any revenues from the tax authorized under this
9section shall be submitted annually by the recognized tourist
10promotion agency to the county commissioners.

11(f) Administrative fee.--For the purposes of defraying costs
12associated with the collection of the tax imposed under this
13section and otherwise performing its obligations under this
14section, a county is hereby authorized to deduct and retain an
15administrative fee from the taxes collected hereunder. Such
16administrative fee shall be established by the county but shall
17not exceed in any tax year the lesser of:

18(1) two percent of all taxes collected under this
19section; or

20(2) fifty thousand dollars, which amount shall be

21adjusted annually, beginning one year after the date of

22enactment, by the the percentage growth in the Consumer Price

23Index for All Urban Consumers as determined by the United
24States Department of Labor.

25(g) Definitions.--As used in this section, the following
26words and phrases shall have the meanings given to them in this
27subsection unless the context clearly indicates otherwise:

28"Consideration." Receipts, fees, charges, rentals, leases,

29cash, credits, property of any kind or nature or other payment

30received by operators in exchange for or in consideration of the

1use or occupancy by a transient of a room or rooms in a hotel

2for a temporary period.

3"County." Any county of the third class having a population

4under the 2010 most recent<- Federal Decennial Census in excess of
5430,000 residents but less than 440,000 residents.

6"Hotel." A hotel, motel, inn, guesthouse or other structure

7which holds itself out by any means, including advertising,

8license, registration with an innkeepers' group, convention

9listing association, travel publication or similar association

10or with a government agency, as being available to provide

11overnight lodging for consideration to persons seeking temporary

12accommodation; any place which advertises to the public at large

13or any segment thereof that it will provide beds, sanitary

14facilities or other space for a temporary period to members of

15the public at large; or any place recognized as a hostelry. The

16term does not include any portion of a facility that is devoted

17to persons who have an established permanent residence or a

18college or university student residence hall or any private

19campground or any cabins, public campgrounds or other facilities

20located on State land.

21"Operator." Any individual, partnership, nonprofit or

22profit-making association or corporation or other person or

23group of persons who maintain, operate, manage, own, have

24custody of or otherwise possess the right to rent or lease

25overnight accommodations in a building to the public for

26consideration.

27"Patron." Any person who pays the consideration for the

28occupancy of a room or rooms in a hotel.

29"Permanent resident." Any person who has occupied or has the

30right to occupy a room or rooms in a hotel as a patron or

1otherwise for a period exceeding 30 consecutive days.

2"Recognized tourist promotion agency." The nonprofit

3corporation, organization, association or agency which is

4engaged in planning and promoting programs designed to stimulate

5and increase the volume of tourist, visitor and vacation

6business within counties served by the agency as that term is

7provided under the act of July 4, 2008 (P.L.621, No.50), known
8as the Tourism Promotion Act.

9"Room." A space in a building set aside for use and
10occupancy by patrons, or otherwise, for consideration, having at
11least one bed or other sleeping accommodations provided.

12"Temporary resident." Any person who has occupied or has the

13right to occupy a room or rooms in a hotel as a patron or

14otherwise for a period of time not exceeding 30 consecutive

15days.

16"Transaction." The activity involving the obtaining by a

17transient or patron of the use or occupancy of a hotel room from

18which consideration emanates to the operator under an expressed

19or implied contract.

20"Transient." Any person who obtains an accommodation in any
21hotel for the person by means of registering at the facility for

22the temporary occupancy of a room for the personal use of that

23person by paying to the operator of the facility a fee in

24consideration therefor.

25Section <-2 4. This act shall take effect in 60 days.

26§ 8723. Hotel room rental tax in fourth class counties WITH A<-
27POPULATION BETWEEN 149,000 AND 152,000 RESIDENTS.

28(a) Authorization--The county commissioners of any county of
29the fourth class having a population under the most recent
30Federal decennial census in excess of 149,000 residents, but

1less than 152,000 residents, may impose a hotel tax not to
2exceed 5% of the consideration received by each operator of a
3hotel within the county from each transaction of renting a room
4or rooms to transients. The tax shall be collected by the
5operator from the patron of the room or rooms and paid over to
6the county as provided under this section.

7(b) Records.--The provisions of subsection (c)
8notwithstanding, county commissioners may by ordinance impose
9requirements for keeping of records, the filing of tax returns
10and the time and manner of collection and payment of tax. The
11county commissioners may also impose by ordinance penalties and
12interest for failure to comply with recordkeeping, filing,
13collection and payment requirements.

14(c) Audit.--Each operator of a hotel within a county that
15imposes the tax authorized under this section shall submit to an
16audit of hotel tax revenue. The audit shall be conducted by the
17county commissioners and shall consist, at a minimum, of
18determining the total amount of consideration received by the
19operator from transactions of renting a room or rooms to
20transients during the period being audited and the total amount
21of hotel tax revenue collected. The county commissioners or
22their duly authorized agents shall conduct at least one audit
23annually and shall bear the costs of the audit.

24(d) (Reserved).

25(e) Collection, deposit and disposition.--The treasurer of
26each county that imposes the tax authorized under this section
27shall collect the tax and deposit the revenues received from the
28tax in a special fund established for that purpose. Subject to
29the deduction of the administrative fee authorized by subsection
30(h), the disposition of the revenues from the special fund shall

1be as follows:

2(1) Seventy-five percent of all revenues received per
3annum shall be used by the county's recognized TPA for the
4promotion, advertising and marketing of tourism and special
5events and for administrative costs.

6(2) Twenty-five percent of all revenues received per
7annum shall be distributed as follows:

8(i) Fifty percent shall be used by the county
9commissioners for the purposes of economic development,
10historic preservation and the arts. The county
11commissioners shall use 10% of the funds received under
12this subparagraph for grants to municipalities that each
13have at least 20,000 residents.

14(ii) Fifty percent shall be used by the county
15commissioners for grants to municipalities that:

16(A) have a municipal police department employing
17at least two full-time police officers assigned to
18law enforcement duties who work a minimum of 200 days
19per year; or

20(B) are a member of a regional police department
21that provides full-time police services to the
22municipality pursuant to an agreement or contract.

23(iii) Municipalities receiving grants under
24subparagraph (ii) must meet or have met the eligibility
25requirements under subparagraph (ii)(A) or (B) for a
26minimum of two years prior to receiving the grant.

27(f) Grants.--Grants under subsection (e)(2)(ii) shall be
28distributed to municipalities in proportion to the number of
29hotel rooms within the municipality as a percentage of the total
30number of hotel rooms in municipalities with police departments

1under subsection (e)(2)(ii) as compiled by the recognized TPA
2and certified by the county commissioners. Grants shall be used
3for police and law enforcement purposes. Any portion of a grant
4not used for police and law enforcement purposes shall be
5returned to the county for the purposes of subsection (d)(2)(i).

6(g) Tax year.--The tax year for a tax imposed under this
7section shall run concurrently with the calendar year.

8(h) Audited report.--An audited report on the income and
9expenditures incurred by a TPA receiving any revenues from the
10tax authorized under this section shall be submitted annually by
11the TPA to the county commissioners.

12(i) Administrative fee.--The county may deduct and retain an
13administrative fee from the taxes collected under this section.
14The administrative fee established by the county may not exceed
15in any tax year the lesser of:

16(1) four and one-half percent of all taxes collected
17under this section; or

18(2) ninety-five thousand dollars, which amount shall be
19adjusted biannually, beginning two years after the effective
20date of this subsection, by the percentage growth in the
21Consumer Price Index for All Urban Consumers.

22(j) Use of fee.--Revenue collected from the fee imposed
23under subsection (i) shall be used for the following purposes:

24(1) Defraying the costs associated with the collection
25and administration of the tax.

26(2) Defraying the costs of the audit required under
27subsection (c).

28(k) Definitions.--As used in this section, the following
29words and phrases shall have the meanings given to them in this
30subsection unless the context clearly indicates otherwise:

1"Consideration." Receipts, fees, charges, rentals, leases,
2cash, credits, property of any kind or nature, or other payment
3received by operators in exchange for or in consideration of the
4use or occupancy by a transient of a room or rooms in a hotel
5for any temporary period.

6"Hotel." A hotel, motel, inn, guest house or other structure
7which holds itself out by any means, including advertising,
8license, registration with an innkeepers' group, convention
9listing association, travel publication or similar association
10or with a government agency, as being available to provide
11overnight lodging or use of facility space for consideration to
12persons seeking temporary accommodation; any place which
13advertises to the public at large or any segment thereof that it
14will provide beds, sanitary facilities or other space for a
15temporary period to members of the public at large; or any place
16recognized as a hostelry. The term does not include any portion
17of a facility that is devoted to persons who have an established
18permanent residence or a college or university student residence
19hall.

20"Occupancy." The use or possession or the right to the use
21or possession by any person other than a permanent resident of
22any room in a hotel for any purpose or the right to the use or
23possession of the furnishings or to the services accompanying
24the use and possession of the room.

25"Operator." An individual, partnership, nonprofit or profit-
26making association or corporation or other person or group of
27persons who maintain, operate, manage, own, have custody of or
28otherwise possess the right to rent or lease overnight
29accommodations in a hotel to the public for consideration.

30"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.

23§ 8724. Hotel room rental tax in second class township.--

24(a) Tax.--Notwithstanding any other provision of law to the
25contrary, the governing body of a township of the second class
26with a population of more than 60,000 and less than 61,000 based
27on the most recent Federal decennial census, and which is
28located within a county of the second class A, may impose an
29excise tax on the consideration received by each operator of a
30hotel from each transaction of renting a room to accommodate a

1transient. If levied, the tax shall be collected by the operator
2from the patron of the room and paid over to the township and
3shall be known as the second class township hotel room rental
4tax.

5(b) Rate.--The rate of the tax imposed under this section
6shall not exceed 3%.

7(c) Importation.--A township electing to impose the tax
8shall by ordinance or resolution provide for the creation or
9designation of a political subdivision, public employee, tax
10bureau or public or private agency to collect the tax and
11deposit the revenues received from the tax in a special fund.
12The revenues from the special fund shall be used by the township
13for the provision of police and emergency services.

14(d) Year.--Each tax year when a tax is imposed under this
15section shall run concurrently with the township's fiscal year.

16(e) Limitations.--Section 301.1(f)(3) of the act of December
1731, 1965 (P.L.1257, No.511), known as The Local Tax Enabling
18Act, shall not apply to the second class township hotel room
19rental tax imposed under this section.

20(f) Definitions.--As used in this section, the following
21words and phrases shall have the meanings given to them in this
22subsection unless the context clearly indicates otherwise:

23"Bed and breakfast" or "homestead." A public accommodation
24consisting of a private residence which contains ten or fewer
25bedrooms used for providing overnight accommodations to the
26public and in which breakfast is the only meal served and the
27charge for breakfast is included in the charge for the room.

28"Consideration." Receipts, fees, charges, rentals, leases,
29cash, credits, property of any kind or nature or other payment
30received by an operator in exchange for or in consideration of

1the use or occupancy by a transient of a room in a hotel for a
2temporary period.

3"Hotel." Includes any of the following:

4(1) hotel, motel, bed and breakfast, homestead, inn,
5guest house or other structure which holds itself out by any
6means, including advertising, license, registration with an
7innkeepers' group, convention listing association, travel
8publication or similar association or with a government
9agency, as being available to provide overnight lodging or
10use of facility space for consideration to persons seeking
11temporary accommodation;

12(2) any place which advertises to the public at large or
13any segment of the public that it will provide beds, sanitary
14facilities or other space for a temporary period to members
15of the public at large; or

16(3) any place recognized as a hostelry.

17The term does not include any portion of a facility that is
18devoted to persons who have an established permanent residence
19or a college or university student residence hall or any private
20campground or any cabins, public campgrounds or other facilities
21located on State land.

22"Occupancy." The use or possession or the right to the use
23or possession by any person other than a permanent resident of
24any room in a hotel for any purpose or the right to the use or
25possession of the furnishings or to the services accompanying
26the use and possession of the room.

27"Operator." An individual, partnership, nonprofit or profit-
28making association or corporation or other person or group of
29persons who maintain, operate, manage, own, have custody of or
30otherwise possess the right to rent or lease overnight

1accommodations in a hotel to the public for consideration.

2"Patron." A person who pays the consideration for the
3occupancy of a room in a hotel.

4"Permanent resident." A person who has occupied or has the
5right to occupancy of a room in a hotel as a patron or otherwise
6for a period of more than 30 consecutive days.

7"Room." A space in a hotel set aside for use and occupancy
8by patrons, or otherwise, for consideration, having at least one
9bed or other sleeping accommodation in a room or group of rooms.

10"Transaction." The activity involving the obtaining by a
11transient or patron of the use or occupancy of a hotel room from
12which consideration is payable to the operator under an express
13or an implied contract.

14"Transient." An individual who obtains accommodation in a
15hotel by means of registering at the facility for the temporary
16occupancy of a room for the personal use of the individual by
17paying a fee to the operator.

18§ 8725. Hotel room rental tax in fourth class counties WITH A
19POPULATION BETWEEN 148,000 AND 149,000 RESIDENTS.

20(a)  General rule.--A county may, by ordinance, impose a tax 
21which shall be known as a hotel room rental tax on the 
22consideration received by each operator of a hotel within the 
23county from each transaction of renting a room or rooms to 
24accommodate transients. The tax shall be collected by the 
25operator from the patron of the room and paid over to the county 
26where the hotel is located as provided under this section.

27(b)  Rate.--The rate of the tax imposed under this section 
28shall not exceed 2%, in addition to the tax imposed under 
29section 1770.2 of the act of August 9, 1955 (P.L.323, No.130), 
30known as The County Code.

1(c)  Collection.--The treasurer of each county electing to 
2impose the tax authorized under this section shall collect the 
3tax and deposit the revenues received from the tax in a special 
4fund established for that purpose. The governing authority shall 
5distribute to county programs, by resolution or ordinance, all 
6revenues received from the tax not later than 60 days after 
7receipt of the tax revenues.

8(d) Tax year.--Each tax year for any tax imposed under this 
9section shall run concurrently with the county's fiscal year.

10(e) Definitions.--As used in this section, the following 
11words and phrases shall have the meanings given to them in this 
12subsection unless the context clearly indicates otherwise:

13"Consideration." Receipts, fees, charges, rentals, leases,
14cash, credits, property of any kind or nature or other payment
15received by operators in exchange for or in consideration of the
16use or occupancy by a transient of a room or rooms in a hotel
17for a temporary period.

18"County." Any county of the fourth class having a population
19under the most recent Federal decennial census in excess of
20148,000 residents but less than 149,000 residents.

21"Hotel." A hotel, motel, inn, guesthouse or other structure
22which holds itself out by any means, including advertising,
23license, registration with an innkeepers' group, convention
24listing association, travel publication or similar association
25or with a government agency, as being available to provide
26overnight lodging for consideration to persons seeking temporary
27accommodation; any place which advertises to the public at large
28or any segment thereof that it will provide beds, sanitary
29facilities or other space for a temporary period to members of
30the public at large; or any place recognized as a hostelry. The

1term does not include any portion of a facility that is devoted
2to persons who have an established permanent residence or a
3college or university student residence hall or any private
4campground or any cabins, public campgrounds or other facilities
5located on State land.

6"Operator." Any individual, partnership, nonprofit or
7profit-making association or corporation or other person or
8group of persons who maintains, operates, manages, owns, has
9custody of or otherwise possesses the right to rent or leases
10overnight accommodation in a building to the public for
11consideration.

12"Patron." Any person who pays the consideration for the
13occupancy of a room or rooms in a hotel.

14"Permanent resident." Any person who has occupied or has the
15right to occupy a room or rooms in a hotel as a patron otherwise
16for a period exceeding 30 consecutive days.

17"Room." A space in a building set aside for use and
18occupancy by patrons, or otherwise, for consideration, having at
19least one bed or other sleeping accommodations provided.

20"Temporary resident." Any person who has occupied or has the
21right to occupy a room or rooms in a hotel as a patron otherwise
22for a period of time not exceeding 30 consecutive days.

23"Transaction." The activity involving the obtaining by a
24transient or patron of the use or occupancy of a hotel room from
25which consideration emanates to the operator under an expressed
26or implied contract.

27"Transient." Any person who obtains an accommodation in any
28hotel for the person by means of registering at the facility for
29the temporary occupancy of a room for the personal use of that
30person by paying to the operator of the facility a fee in

1consideration therefor.

2§ 8726. Hotel room rental tax in fourth class counties WITH A
3POPULATION BETWEEN 205,000 AND 210,000 RESIDENTS.

4(a) General rule.--A county may, by ordinance, impose a tax

5which shall be known as a hotel room rental tax on the

6consideration received by each operator of a hotel within the

7county from each transaction of renting a room or rooms to

8accommodate transients. The tax shall be collected by the

9operator from the patron of the room and paid over to the county

10where the hotel is located as provided under this section.

11(b) Rate.--The rate of the tax imposed under this section
12shall not exceed 5%.

13(c) Collection.--The treasurer of each county electing to
14impose the tax authorized under this section shall collect the
15tax and deposit the revenues received from the tax in a special
16fund established for that purpose. Subsequent to the deduction
17for administrative costs established in subsection (f), the
18county shall distribute to a recognized tourist promotion agency
19for the county all revenues received from the tax not later than
2060 days after receipt of the tax revenues.

21(d) Tax year.--Each tax year for any tax imposed under this
22section shall run concurrently with the county's fiscal year.

23(e) (Reserved).

24(f) Administrative fee.--For the purposes of defraying costs
25associated with the collection of the tax imposed under this
26section and otherwise performing its obligations under this
27section, a county is hereby authorized to deduct and retain an
28administrative fee from the taxes collected hereunder. Such
29administrative fee shall be established by the county but shall
30not exceed in any tax year the lesser of:

1(1) two percent of all taxes collected under this
2section; or

3(2) fifty thousand dollars, which amount shall be

4adjusted annually, beginning one year after the date of

5enactment, by the the percentage growth in the Consumer Price

6Index for All Urban Consumers as determined by the United
7States Department of Labor.

8(g) Definitions.--As used in this section, the following
9words and phrases shall have the meanings given to them in this
10subsection unless the context clearly indicates otherwise:

11"Consideration." Receipts, fees, charges, rentals, leases,

12cash, credits, property of any kind or nature or other payment

13received by operators in exchange for or in consideration of the

14use or occupancy by a transient of a room or rooms in a hotel

15for a temporary period.

16"County." Any county of the fourth class having a population
17during the most recent Federal decennial census in excess of
18205,000 residents but less than 210,000 residents.

19"Hotel." A hotel, motel, inn, guesthouse or other structure

20which holds itself out by any means, including advertising,

21license, registration with an innkeepers' group, convention

22listing association, travel publication or similar association

23or with a government agency, as being available to provide

24overnight lodging for consideration to persons seeking temporary

25accommodation; any place which advertises to the public at large

26or any segment thereof that it will provide beds, sanitary

27facilities or other space for a temporary period to members of

28the public at large; or any place recognized as a hostelry. The

29term does not include a college or university student residence
30hall or any private campground or any cabins, public campgrounds

1or other facilities located on State land.

2"Operator." Any individual, partnership, nonprofit or

3profit-making association or corporation or other person or

4group of persons who maintain, operate, manage, own, have

5custody of or otherwise possess the right to rent or lease

6overnight accommodations in a building to the public for

7consideration.

8"Patron." Any person who pays the consideration for the

9occupancy of a room or rooms in a hotel.

10"Room." A space in a building set aside for use and
11occupancy by patrons, or otherwise, for consideration, having at
12least one bed or other sleeping accommodations provided.

13"Transaction." The activity involving the obtaining by a

14transient or patron of the use or occupancy of a hotel room from

15which consideration emanates to the operator under an expressed

16or implied contract.

17"Transient." Any person who obtains an accommodation in any
18hotel for the person by means of registering at the facility for

19the temporary occupancy of a room for the personal use of that

20person by paying to the operator of the facility a fee in

21consideration therefor.

22§ 8727. Local option cigarette tax in school districts of the
23first class.

24(a) Authorization.--The following shall apply:

25(1) A school district may, if authorized by ordinance of
26the governing body of a city of the first class adopted prior
27to or after the effective date of this section, impose and
28assess an excise tax upon the sale or possession of
29cigarettes within the school district at a rate of 10¢ per
30cigarette. Only one sale shall be taxable and used in

1computing the amount of tax due, whether the sale is of
2individual cigarettes, packages, cartons or cases.

3(2) The governing body of the city of the first class
4and school district may amend, respectively, the ordinance
5authorizing the imposition of the tax and the resolution
6imposing the tax authorized by this section to reflect the
7provisions of this section in the fiscal year in which this
8section takes effect.

9(b) Exception.--The tax authorized under subsection (a) may
10not be levied upon the possession or sale of any cigarette that
11is exempt from, or which is otherwise not subject to, levy under
12Article XII of the Tax Reform Code and the regulations
13promulgated under that article.

14(c) Collection.--

15(1) The tax authorized under subsection (a) shall be
16collected and remitted to the department in the same manner
17as the tax imposed under Article XII of the Tax Reform Code.
18The regulations promulgated under section 1291 of the Tax
19Reform Code shall be applicable to the tax authorized under
20subsection (a) insofar as the regulations are consistent with
21this section.

22(2) Unless the department promulgates regulations to the
23contrary under subsection (d), any stamp affixed under
24section 1215 of the Tax Reform Code shall also reflect
25payment of any tax authorized under this section.

26(3) The provisions of section 1216 of the Tax Reform
27Code shall not apply to any tax authorized under this
28section.

29(d) Administration.--The department shall administer and
30enforce the provisions of this section and may promulgate and

1enforce any rules and regulations not inconsistent with the
2provisions of this section.

3(e) Reimbursement of costs.--From the tax collected under
4this section, the department may retain a sum of the costs of
5collection and shall, on a monthly basis, notify in writing the
6school district imposing the tax of the sum retained and the
7costs of collection under this section. Annually, the department
8shall estimate its cost of collection under this section for the
9next succeeding fiscal year and shall provide the estimate to
10the school district.

11(f) Certified copy of ordinance to department.--A school
12district that adopts a resolution:

13(1) To impose the tax authorized under this section or
14to change the rate of the tax shall provide a certified copy
15of the resolution to the department not later than 20 days
16prior to the effective date of the tax or change to the tax.

17(2) To repeal the tax authorized under this section
18shall provide a certified copy of the resolution to the
19department not later than 30 days prior to the effective date
20of the repeal.

21(g) Effective date.--The effective date of any tax
22authorized under this section or change to the tax shall be no
23earlier than 30 days after the adoption of the resolution or
24ordinance.

25(h) Local Cigarette Tax Fund.--

26(1) The Local Cigarette Tax Fund is established in the
27State Treasury and the State Treasurer shall be custodian of
28the fund. The fund shall be subject to the provisions of law
29applicable to funds listed in section 302 of the act of April
309, 1929 (P.L.343, No.176), known as The Fiscal Code.

1(2) The tax imposed under subsection (a) shall be
2received by the department and paid to the State Treasurer
3and, along with interest and penalties, less any collection
4costs allowed under this section and any refunds and credits
5paid, shall be credited to the fund not less frequently than
6every two weeks. During any period prior to the credit of
7moneys to the fund, interest earned on moneys received by the
8department and paid to the State Treasurer under this section
9shall be deposited into the fund.

10(3) Moneys credited to the fund shall be property of the
11school district and shall be distributed as provided in this
12section. The money in the fund, including, but not limited
13to, money credited to the fund under this section, prior year
14encumbrances and the interest earned thereon, shall not lapse
15or be transferred to any other fund, but shall remain in the
16fund and must be used exclusively as provided in this
17section.

18(4) Pending their disbursement to the school district,
19moneys received on behalf of or deposited into the fund shall
20be invested or reinvested as are other funds in the custody
21of the State Treasurer in the manner provided by law. The
22earnings received from the investment or deposit of the funds
23shall be credited to the fund.

24(i) Disbursement to school district.--On or before the 10th
25day of every month, the State Treasurer shall disburse to the
26school district imposing the tax under this section the total
27amount of moneys which are, as of the last day of the previous
28month, contained in the fund.

29(j) Definitions.--As used in this section, the following
30words and phrases shall have the meanings given to them in this

1subsection unless the context clearly indicates otherwise:

2"Cigarette." As defined in section 1201 of the Tax Reform
3Code.

4"Department." The Department of Revenue of the Commonwealth.

5"Fund." The Local Cigarette Tax Fund established under this
6section.

7"Sale." As defined in section 1201 of the Tax Reform Code.

8"School district." A school district of the first class
9coterminous with a city of the first class.

10"Tax Reform Code." The act of March 4, 1971 (P.L.6, No.2),
11known as the Tax Reform Code of 1971.

12§ 8728. Local sales tax revenues in cities of the first class.

13Notwithstanding the provisions of section 696 of the act of
14March 10, 1949 (P.L.30, No.14), known as the Public School Code
15of 1949, an increase in grants to a school district of the first
16class by a city of the first class based on debt service to be
17paid as authorized under section 201-B(f)(1) of the act of March
184, 1971 (P.L.6, No.2), known as the Tax Reform Code of 1971,
19shall not require a comparable increase in grants by the city in
20subsequent years.

21Section 5. This act shall take effect as follows:

22(1) The addition of 53 Pa.C.S. §§ 8723, 8724, 8725,
238726, 8727 and 8728 shall take effect immediately.

24(2) This section shall take effect immediately.

25(3) The remainder of this act shall take effect in 60
26days.