PRINTER'S NO. 2191
No. 1611 Session of 1990
INTRODUCED BY BAKER, STEWART, GREENWOOD, FATTAH AND LEWIS,
MAY 23, 1990
REFERRED TO LOCAL GOVERNMENT, MAY 23, 1990
AN ACT
1 Amending the act of August 9, 1955 (P.L.323, No.130), entitled
2 "An act relating to counties of the third, fourth, fifth,
3 sixth, seventh and eighth classes; amending, revising,
4 consolidating and changing the laws relating thereto,"
5 authorizing the imposition of a tax on hotel room rentals;
6 and providing for use of the proceeds.
7 The General Assembly of the Commonwealth of Pennsylvania
8 hereby enacts as follows:
9 Section 1. The act of August 9, 1955 (P.L.323, No.130),
10 known as The County Code, is amended by adding a section to
11 read:
12 Section 1770.2. Hotel Room Rental.--(a) The following words
13 and phrases when used in this section shall have the meanings
14 given to them in this subsection unless the context clearly
15 indicates otherwise:
16 "Consideration." Receipts, fees, charges, rentals, leases,
17 cash, credits, property of any kind or nature, or other payment
18 received by operators in exchange for or in consideration of the
19 use or occupancy by a transient of a room or rooms in a hotel
1 for any temporary period.
2 "Hotel." A hotel, motel, inn, guest house or other building
3 located within the taxing jurisdiction which holds itself out by
4 any means including advertising, license, registration with any
5 innkeepers' groups, convention listing association, travel
6 publication or similar association or with any government agency
7 as being available to provide overnight lodging or use of
8 facility space for consideration to persons seeking temporary
9 accommodation; any place which advertises to the public-at-large
10 or any segment thereof that it will provide beds, sanitary
11 facilities or other space for a temporary period to members of
12 the public-at-large; any place recognized as a hostelry:
13 Provided, That portions of such facility which are devoted to
14 persons who have established permanent residence shall not be
15 included in this definition.
16 "Occupancy." The use or possession or the right to the use
17 or possession by any person other than a permanent resident of
18 any room in a hotel for any purpose or the right to the use or
19 possession of the furnishings or to the services accompanying
20 the use and possession of the room.
21 "Operator." Any individual, partnership, nonprofit or
22 profit-making association or corporation or other person or
23 group of persons who maintain, operate, manage, own, have
24 custody of, or otherwise possess the right to rent or lease
25 overnight accommodations in any hotel to the public for
26 consideration.
27 "Patron." Any person who pays the consideration for the
28 occupancy of a room or rooms in a hotel.
29 "Permanent resident." Any person who has occupied or has the
30 right to occupancy of any room or rooms in a hotel as a patron
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1 or otherwise for a period exceeding thirty consecutive days.
2 "Recognized tourist promotion agency." The nonprofit
3 corporation, organization, association or agency which is and
4 has been engaged in planning and promoting programs designed to
5 stimulate and increase the volume of tourist, visitor and
6 vacation business within counties served by such agencies as
7 that term is defined in the act of April 28, 1961 (P.L.111,
8 No.50), known as the "Tourist Promotion Law," and which
9 particular nonprofit corporation, organization, association or
10 agency heretofore has been recognized by the Department of
11 Commerce all in accordance with the terms of the "Tourist
12 Promotion Law."
13 "Room." A space in a hotel set aside for use and occupancy
14 by patrons, or otherwise, for consideration, having at least one
15 bed or other sleeping accommodation provided therein.
16 "Temporary." A period of time not exceeding thirty
17 consecutive days.
18 "Transaction." The activity involving the obtaining by a
19 transient or patron of the use or occupancy of a hotel room from
20 which consideration emanates to the operator under an express or
21 an implied contract.
22 "Transient." Any individual who obtains accommodation in any
23 hotel for himself by means of registering at the facility for
24 the temporary occupancy of any room for the personal use of that
25 individual by paying to the operator of the facility a fee in
26 consideration therefor.
27 (b) The county commissioners in any county may impose an
28 excise tax not to exceed five per centum on the consideration
29 received by each operator of a hotel within the county from each
30 transaction of renting a room or rooms to accommodate
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1 transients. The tax shall be collected by the operator from the
2 patron of the room and paid over to the county as herein
3 provided.
4 (c) The commissioners of each county electing to impose the
5 tax authorized under this section are hereby directed to collect
6 the tax and to deposit the revenues received from the tax in the
7 county general fund. Each county may deduct from the revenues
8 received from the tax any direct or indirect costs attributable
9 to collection of the tax. A county may invest the revenues for a
10 period not exceeding one year before making a distribution or
11 appropriation of the revenues.
12 (d) Revenues derived from the tax shall be used at the
13 discretion of the county commissioners, for payments to
14 recognized tourist promotion agencies, for economic development,
15 for historic preservation programs or for programs designed to
16 preserve open space and agricultural land.
17 (e) In any county electing to impose the tax authorized
18 under this section, the designated tourist promotion agency
19 shall, prior to receiving any funds, submit a written proposal
20 and annual budget to the Pennsylvania Department of Commerce for
21 matching grants under the act of April 28, 1961 (P.L.111,
22 No.50), known as the "Tourist Promotion Law," and to the
23 commissioners describing how any funds received from the room
24 tax would be spent by the agency.
25 (f) Each tax year for any tax imposed under this section
26 shall run concurrently with the calendar year.
27 (g) An audited report on the income and expenditures
28 incurred by a tourist promotion agency receiving any funds from
29 the excise tax on hotel room rentals shall be submitted annually
30 by the tourist promotion agency to the Board of County
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1 Commissioners.
2 Section 2. This act shall take effect immediately.
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