1Amending the act of August 9, 1955 (P.L.323, No.130), entitled,
2as amended, "An act relating to counties of the first, third,
3fourth, fifth, sixth, seventh and eighth classes; amending,
4revising, consolidating and changing the laws relating
5thereto; relating to imposition of excise taxes by counties,
6including authorizing imposition of an excise tax on the
7rental of motor vehicles by counties of the first class; and
8providing for regional renaissance initiatives," in fiscal
9affairs, providing for authorization of five percent hotel
10tax in certain counties of the fourth class.

11The General Assembly of the Commonwealth of Pennsylvania
12hereby enacts as follows:

13Section 1. The act of August 9, 1955 (P.L.323, No.130),
14known as The County Code, is amended by adding a section to
15read:

16Section 1773. Authorization of Five Per Centum Hotel Tax.--
17(a) The county commissioners of any county of the fourth class
18having a population under the 2010 Federal decennial census in
19excess of 145,000 residents, but less than 209,999 residents,
20may impose a hotel tax not to exceed five per centum of the
21consideration received by each operator of a hotel within the
22county from each transaction of renting a room or rooms to

1transients. The tax shall be collected by the operator from the
2patron of the room or rooms and paid over to the county as
3herein provided.

4(b) The provisions of subsection (c) notwithstanding, county
5commissioners may by ordinance impose requirements for keeping
6of records, the filing of tax returns and the time and manner of
7collection and payment of tax. The county commissioners may also
8impose by ordinance penalties and interest for failure to comply
9with recordkeeping, filing, collection and payment requirements.

10(c) Each operator of a hotel within a county that imposes
11the tax authorized under this section shall submit to an audit
12of hotel tax revenue. The audit shall be conducted by the county
13commissioners and shall consist, at a minimum, of determining
14the total amount of consideration received by the operator from
15transactions of renting a room or rooms to transients during the
16period being audited and the total amount of hotel tax revenue
17collected. The county commissioners or their duly authorized
18agents shall conduct at least one audit annually and shall bear
19the costs of the audit.

20(d) The treasurer of each county that imposes the tax
21authorized under this section shall collect the tax and deposit
22the revenues received from the tax in a special fund established
23for that purpose. Subject to the deduction of the administrative
24fee authorized by subsection (h), the disposition of the
25revenues from the TPA hotel tax fund shall be as follows:

26(1) Seventy-five per centum of all revenues received per
27annum shall be used by the county's recognized TPA for the
28promotion, advertising and marketing of tourism and special
29events and for administrative costs.

30(2) Twenty-five per centum of all revenues received per

1annum shall be distributed as follows:

2(i) Fifty per centum shall be used by the county
3commissioners for the purposes of economic development, historic
4preservation and the arts.

5(ii) Fifty per centum shall be used by the county
6commissioners for grants to municipalities that:

7(A) have a municipal police department employing at least
8two full-time police officers assigned to law enforcement duties
9who work a minimum of two hundred days per year; or

10(B) are a member of a regional police department that
11provides full-time police services to the municipality pursuant
12to an agreement or contract.

13(iii) Municipalities receiving grants under subclause (ii)
14must meet or have met the eligibility requirements under
15subclause (ii)(A) or (B) for a minimum of two years prior to
16receiving the grant.

17(e) Grants under subsection (d)(2)(ii) shall be distributed
18to municipalities in proportion to the number of hotel rooms
19within the municipality as a percentage of the total number of
20hotel rooms in municipalities with police departments under
21subsection (d)(2)(ii) as compiled by the recognized TPA and
22certified by the county commissioners. Grants shall be used for
23police and law enforcement purposes. Any portion of a grant not
24used for police and law enforcement purposes shall be returned
25to the county for the purposes of subsection (d)(2)(i).

26(f) The tax year for a tax imposed under this section shall
27run concurrently with the calendar year.

28(g) An audited report on the income and expenditures
29incurred by a tourist promotion agency receiving any revenues
30from the tax authorized under this section shall be submitted

1annually by the tourist promotion agency to the county
2commissioners.

3(h) The county may deduct and retain an administrative fee
4from the taxes collected under this section. The administrative
5fee established by the county may not exceed in any tax year the
6lesser of:

7(1) four and one-half per centum of all taxes collected
8under this section; or

9(2) ninety-five thousand dollars ($95,000), which amount
10shall be adjusted biannually, beginning two years after the
11effective date of this subsection, by the percentage growth in
12the Consumer Price Index for All Urban Consumers.

13(i) Revenue collected from the fee imposed under subsection
14(h) shall be used for the following purposes:

15(1) Defraying the costs associated with the collection and
16administration of the tax.

17(2) Defraying the costs of the review required under
18subsection (c).

19(j) As used in this section, the following words and phrases
20shall have the meanings given to them in this subsection:

21"Consideration." Receipts, fees, charges, rentals, leases,
22cash, credits, property of any kind or nature, or other payment
23received by operators in exchange for or in consideration of the
24use or occupancy by a transient of a room or rooms in a hotel
25for any temporary period.

26"Hotel." A hotel, motel, inn, guest house or other structure
27which holds itself out by any means, including advertising,
28license, registration with an innkeepers' group, convention
29listing association, travel publication or similar association
30or with a government agency, as being available to provide

1overnight lodging or use of facility space for consideration to
2persons seeking temporary accommodation; any place which
3advertises to the public at large or any segment thereof that it
4will provide beds, sanitary facilities or other space for a
5temporary period to members of the public at large; or any place
6recognized as a hostelry. The term does not include any portion
7of a facility that is devoted to persons who have an established
8permanent residence or a college or university student residence
9hall.

10"Occupancy." The use or possession or the right to the use
11or possession by any person other than a permanent resident of
12any room in a hotel for any purpose or the right to the use or
13possession of the furnishings or to the services accompanying
14the use and possession of the room.

15"Operator." An individual, partnership, nonprofit or profit-
16making association or corporation or other person or group of
17persons who maintain, operate, manage, own, have custody of or
18otherwise possess the right to rent or lease overnight
19accommodations in a hotel to the public for consideration.

20"Patron." A person who pays the consideration for the
21occupancy of a room or rooms in a hotel.

22"Permanent resident." A person who has occupied or has the
23right to occupancy of a room or rooms in a hotel as a patron or
24otherwise for a period exceeding thirty consecutive days.

25"Room." A space in a hotel set aside for use and occupancy
26by patrons, or otherwise, for consideration, having at least one
27bed or other sleeping accommodation in a room or group of rooms.

28"Tourist Promotion Agency (TPA)." An organization, agency or 
29corporation designated to be such by the board of commissioners 
30as of January 1, 2000, of the county in which the tax is
 

1imposed. The TPA shall be duly established, designated and 
2recognized as the county's TPA in accordance with and pursuant 
3to the act of July 4, 2008 (P.L.621, No.50), known as the 
4"Tourism Promotion Act."

5"Transaction." The activity involving the obtaining by a
6transient or patron of the use or occupancy of a hotel room from
7which consideration is payable to the operator under an express
8or an implied contract.

9"Transient." An individual who obtains accommodation in a
10hotel by means of registering at the facility for the temporary
11occupancy of a room for the personal use of the individual by
12paying a fee to the operator.

13Section 2. This act shall take effect immediately.