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SENATE AMENDED
A10371
THE GENERAL ASSEMBLY OF PENNSYLVANIA
HOUSE BILL
No.
1511
Session of
2017
INTRODUCED BY M. QUINN, CORR, BARBIN, DOWLING, W. KELLER,
MILLARD, PASHINSKI, SCHLOSSBERG, WARREN, D. COSTA, WATSON,
SOLOMON, CORBIN, HILL-EVANS, SIMS, STAATS, KORTZ AND
DRISCOLL, JUNE 7, 2017
SENATOR SCAVELLO, COMMUNITY, ECONOMIC AND RECREATIONAL
DEVELOPMENT, IN SENATE, AS AMENDED, OCTOBER 3, 2018
AN ACT
Amending the act of March 4, 1971 (P.L.6, No.2), entitled "An
act relating to tax reform and State taxation by codifying
and enumerating certain subjects of taxation and imposing
taxes thereon; providing procedures for the payment,
collection, administration and enforcement thereof; providing
for tax credits in certain cases; conferring powers and
imposing duties upon the Department of Revenue, certain
employers, fiduciaries, individuals, persons, corporations
and other entities; prescribing crimes, offenses and
penalties," in hotel occupancy tax, further providing for
definitions and for imposition of tax and establishing the
Tourism Promotion Fund.
The General Assembly of the Commonwealth of Pennsylvania
hereby enacts as follows:
Section 1. Sections 209(a) and 210 of the act of March 4,
1971 (P.L.6, No.2), known as the Tax Reform Code of 1971, are
amended to read:
Section 209. Definitions.--(a) For the purposes of this
part V only, the following words, terms and phrases shall have
the meaning ascribed to them in this subsection, except where
the context clearly indicates a different meaning:
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[(1) "Hotel." A building or buildings in which the public
may, for a consideration, obtain sleeping accommodations. The
term "hotel" shall not include any charitable, educational or
religious institution summer camp for children, hospital or
nursing home.]
(1.1) "Accommodation fee." The amount by which the rent
exceeds the discount room charge, if any.
(1.2) "Booking agent." A person or entity which facilitates
or collects payment for hotel accommodations on behalf of or for
an operator. The term "booking agent" shall not include a person
who merely publishes advertisements for accommodations.
(1.3) "Discount room charge." The amount charged by an
operator to a booking agent in connection with the sale of an
accommodation by the booking agent .
(1.4) "Hotel." A building or buildings in which the public
may, for consideration, obtain sleeping accommodations. The term
"hotel" shall not include any charitable, educational or
religious institution summer camp for children, hospital or
nursing home.
(2) "Occupant." A person (other than a "permanent resident,"
as defined herein,) who, for a consideration, uses, possesses or
has a right to use or possess any room or rooms in a hotel under
any lease, concession, permit, right of access, license or
agreement.
(3) "Occupancy." The use or possession or the right to the
use or possession by any person (other than a "permanent
resident,") of any room or rooms in a hotel for any purpose or
the right to the use or possession of the furnishings or to the
services and accommodations accompanying the use and possession
of the room or rooms.
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(4) "Operator." Any person operating a hotel or acting as a
booking agency.
(5) "Permanent resident." Any occupant who has occupied or
has the right to occupancy of any room or rooms in a hotel for
at least thirty consecutive days.
(6) "Rent." The consideration received for occupancy valued
in money, whether received in money or otherwise, including all
receipts, cash, credits and property or services of any kind or
nature, [and also] accommodation fees and any amount for which
the occupant is liable for the occupancy without any deduction
therefrom whatsoever, including any amount charged by a booking
agent. The term "rent" shall not include a gratuity.
* * *
Section 210. Imposition of Tax.--(a) There is hereby
imposed an excise tax of six per cent of the rent upon every
occupancy of a room or rooms in a hotel in this Commonwealth,
which tax shall be collected by the operator from the occupant
and paid over to the Commonwealth as herein provided. If a
booking agent, acting for an operator, collects payment for the
rent, the booking agent must collect and remit the tax. If a
booking agent, acting for an operator, collects payment for
rent, the booking agent must collect and remit the following:
(1) The tax imposed under this section.
(2) Any additional or optional hotel tax imposed under:
(i) The act of June 5, 1991 (P.L.9, No.6), known as the
"Pennsylvania Intergovernmental Cooperation Authority Act for
Cities of the First Class";
(ii) The act of December 21, 1998 (P.L.1307, No.174), known
as the "Community and Economic Improvement Act";
(iii) 64 Pa.C.S. Ch. 60 (relating to Pennsylvania Convention
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Center Authority);
(iv) Articles XVII and XXIII of the act of August 9, 1955
(P.L.323, No.130), known as "The County Code"; or
(v) The act of July 28, 1953 (P.L.723, No.230), known as the
"Second Class County Code ."
(b) Notwithstanding any provision of law to the contrary,
the following shall apply:
(1) The collected and remitted tax imposed under (a)(1)
shall be deposited into the Tourism Promotion Fund established
under section 212.
(2) The collected and remitted tax imposed under paragraph
(a)(2) shall be deposited in accordance with a county ordinance.
(b) (c) An operator shall not be liable for tax owed
regarding an accommodation fee.
(c) (d) A booking agent shall not be required to separately
disclose to an occupant the amount of the tax imposed that
relates to a discount room charge versus an accommodation fee.
Section 2. The act is amended by adding a section to read:
Section 212. Tourism Promotion Fund.-- (a) A restricted
revenue account is established within the Treasury Department to
be known as the Tourism Promotion Fund.
(b) Of the amount collected under this article, ten million
dollars ($10,000,000) shall be transferred annually to the
Tourism Promotion Fund. THE TAX COLLECTED BY A BOOKING AGENT ON
ACCOMMODATION FEES UNDER SECTION 210 SHALL BE DEPOSITED INTO THE
FUND AND DISBURSED UPON APPROPRIATION FOR THE PURPOSE OF
PROMOTING TOURISM IN THIS COMMONWEALTH.
(c) The department shall promulgate guidelines, rules and
regulations as necessary to achieve the purpose of promoting
tourism in this Commonwealth.
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(c.1) Money from the fund may not be used for the promotion
or marketing operations of a tourism entity or for special
events or grants until thirty days after the publication of the
guidelines, rules and regulations under subsection (c) in the
Pennsylvania Bulletin.
(c.2) The following shall apply:
(1) No more than fifty per cent of the funds available for
disbursement under subsection (b) may be distributed for the
purposes of promotion or marketing operations of a tourism
entity or for special events or grants.
(2) Funding for the promotion or marketing operations of a
tourism entity, special events or grants shall require a fifty
per cent cash or in-kind match.
(3) A single recipient of funding under subsection (c.2)(2)
may not be awarded more than fifteen per cent of the total funds
available for disbursement under subsection (b). This paragraph
shall not apply to contracts entered into by the department for
statewide tourism promotion or marketing.
(c.3) Funds available for disbursement under subsection (b)
may not be used for capital projects or for the design,
construction, rehabilitation, repair, installation or purchase
of any building, structure or sign in this Commonwealth.
(d) As used in this section, the following words and phrases
shall have the meanings given to them in this subsection unless
the context clearly indicates otherwise:
"Department." The Department of Community and Economic
Development of the Commonwealth.
"Fund." The Tourism Promotion Fund established under
subsection (a).
"P romoting tourism." Activities and expenditures designed to
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increase tourism including, but not limited to, the following:
(1) Advertising, publicizing or otherwise distributing
information for the purpose of attracting and welcoming
tourists.
(2) Developing strategies to expand tourism.
(3) Funding the promotion or marketing operations of a
tourism entity .
(4) Funding marketing and operations of special events
and festivals designed to attract tourists.
"Tourism entity." A "tourism promotion agency" as defined in
section 2 of the act of July 4, 2008 (P.L.621, No.50), known as
the Tourism Promotion Act , destination marketing organization or
regional attractions marketing agency.
Section 3. This act shall take effect in 60 90 days.
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