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Hotel room rental tax; continuation of existing tax - 64 Pa. Cons. Stat. § 6025

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     § 6025.  Hotel room rental tax; continuation of existing tax.
        (a)  Imposition of tax.--The council of the city in which the
     convention center is located is authorized to impose or continue
     to impose an excise tax on the consideration received by each
     operator of a hotel within the city from each transaction of
     renting a room or rooms to accommodate transients. The tax shall
     be collected by the operator from the patron of the room and
     paid over to the city pursuant to subsection (e) and shall be
     known as the hotel room rental tax.
        (b)  Rate of tax.--
            (1)  The rate of tax imposed under this section by the
        council of the city in which the convention center is located
        shall not exceed 6%.
            (2)  The total rate of tax imposed pursuant to this
        section and section 202 of the act of March 4, 1971 (P.L.6,
        No.2), known as the Tax Reform Code of 1971, shall not exceed
        12%. In the event the rate of tax imposed pursuant to section
        202 of the Tax Reform Code of 1971 exceeds 6% and the rate of
        tax imposed pursuant to this section has reached 6%, the rate
        of tax imposed pursuant to this section shall be reduced in
        order that the aggregate tax rate not exceed 12%.
        (c)  Distribution of tax revenue.--Tax revenues shall be
     annually deposited in a special fund established pursuant to
     subsection (d) for the use of tourist promotion agencies for
     tourist promotion agency activities in accordance with all of
     the following:
            (1)  Thirty-three and one-third percent of the revenue
        received pursuant to this section for the fiscal year of the
        city commencing on or after July 1, 1999, and each fiscal
        year thereafter ending prior to July 1, 2010.
            (2)  Twenty-nine and one hundred and sixty-six one
        thousandths percent of the revenue received pursuant to this
        section for the fiscal year of the city commencing on or
        after July 1, 2010, and each fiscal year thereafter ending
        prior to July 1, 2015.
            (3)  Twenty-five percent of the revenue received pursuant
        to this section for the fiscal year of the city commencing
        July 1, 2015, and thereafter. The balance of revenue to be
        received from taxes imposed pursuant to this section shall be
        deposited annually in a special fund established pursuant to
        subsection (d) for the use of the authority for convention
        center purposes.
        (d)  Deposit.--The tax collector of each city electing to
     impose the tax authorized under this section or the tax
     collector of each city imposing the tax on the effective date of
     this chapter as authorized under the former provisions of the
     act of June 27, 1986 (P.L.267, No.70), known as the Pennsylvania
     Convention Center Authority Act, formerly codified at 53 Pa.C.S.
     Ch. 59 (relating to Pennsylvania Convention Center Authority),
     is directed to collect the tax and to deposit the revenue
     received from the tax in special funds established for purposes
     set forth in this section. Interest on money deposited in the
     funds shall accrue proportionately to the respective funds as
     provided in this section. The tax collector is authorized to
     establish, maintain and amend already existing rules and
     regulations concerning the collection of the tax.
        (e)  Expenditures.--Expenditures from the funds established
     pursuant to subsection (d) for the tourist promotion agency
     shall be used by the designated tourist promotion agency for any
     of the following:
            (1)  Advertising and publicizing tourist attractions in
        the area served by the agency.
            (2)  Promoting and attracting conventions, exhibitions
        and other functions to utilize facilities in the area served
        by the agency.
            (3)  Promoting and otherwise encouraging the use of the
        facilities in the area served by the agency by the public as
        a whole.
            (4)  Costs associated with the development and operation
        of the convention center.
        (f)  Expenditures for convention center purposes.--
     Expenditures from a special fund established pursuant to
     subsection (d) for the authority shall be used by the authority
     for any of the following uses:
            (1)  Projected annual debt service or lease payments of
        the convention center authority.
            (2)  Costs associated with financing, constructing,
        improving, maintaining, furnishing, fixturing and equipping
        the convention center.
            (3)  Costs associated with the development of the
        convention center, including design, engineering and
        feasibility costs.
            (4)  Costs associated with the operation and management
        of the convention center.
            (5)  Costs associated with promoting, marketing and
        otherwise encouraging use of the convention center.
            (6)  General purposes of the convention center.
        (g)  Pledge to bondholders.--If and to the extent that the
     authority pledges its share of the proceeds of the tax
     authorized by this section as security for the payment of bonds
     issued by the authority for convention center purposes, the
     Commonwealth pledges to and agrees with any person, firm or
     corporation subscribing to or acquiring bonds to be issued by
     the authority for convention center purposes that the
     Commonwealth itself will not, except to the extent provided in
     subsection (b), authorize any city to reduce the rate of tax
     imposed for convention center purposes until all bonds secured
     by the pledge of the authority, together with the interest on
     the bonds, are fully met and discharged.
        (h)  Tax year.--Each tax year for any tax imposed hereunder
     shall run concurrently with the city's fiscal year.
        (i)  Continuation of current tax.--The former provisions of
     section 23 of the Pennsylvania Convention Center Authority Act,
     formerly codified at 53 Pa.C.S. Ch. 59, are continued by this
     chapter, and any tax imposition under the former provisions of
     section 23 of the Pennsylvania Convention Center Authority Act,
     formerly codified at 53 Pa.C.S. Ch. 59, is specifically
     continued and is not repealed or modified in any way by the
     enactment of this chapter.
        (j)  Definitions.--In addition to the definitions provided by
     section 6003 (relating to definitions), the following words and
     phrases when used in this section shall have the meanings given
     to them in this subsection unless the context clearly indicates
     otherwise:
        "Consideration."  Receipts, fees, charges, rentals, leases,
     cash, credits, property of any kind or nature, or other payment,
     received by operators in exchange for or in consideration of the
     use or occupancy by a transient of a room or rooms in a hotel
     for any temporary period.
        "Hotel."  As follows:
            (1)  Any hotel, motel, inn, guesthouse or other building
        located within the city which holds itself out by any means,
        including advertising, license, registration with any
        innkeeper's group, convention listing association, travel
        publication or similar association or with any government
        agency, as being available to provide overnight lodging or
        use of facility space for consideration to individuals
        seeking temporary accommodation.
            (2)  Any place which advertises to the public at large or
        any segment of the public that it will provide beds, sanitary
        facilities or other space for a temporary period to members
        of the public at large.
            (3)  Any place recognized as a hostelry.
     The term does not include a portion of a facility which is
     devoted to individuals who have established permanent residence.
        "Occupancy."  The use or possession or the right to the use
     or possession by any person other than a permanent resident of
     any room in a hotel for any purpose or the right to the use or
     possession of the furnishings or to the services accompanying
     the use and possession of the room.
        "Operator."  Any individual, partnership, nonprofit or
     profit-making association or corporation or other person or
     group of persons that maintains, operates, manages, owns, has
     custody of or otherwise possesses the right to rent or lease
     overnight accommodations in a hotel to the public for
     consideration.
        "Patron."  A person that pays the consideration for the
     occupancy of a room or rooms in a hotel.
        "Permanent resident."  Any person who has occupied or has the
     right to occupy any room or rooms in a hotel as a patron or
     otherwise for a period exceeding 30 consecutive days.
        "Room."  A space in a hotel set aside for use and occupancy
     by patrons, or otherwise, for consideration, having at least one
     bed or other sleeping accommodations provided in the space.
        "Temporary."  A period of time not exceeding 30 consecutive
     days.
        "Tourist promotion agency."  The agency designated by the
     council of the city in which the convention center is located to
     be eligible for grants from the Department of Community and
     Economic Development pursuant to the act of April 28, 1961
     (P.L.111, No.50), known as the Tourist Promotion Law.
        "Transaction."  The activity involving the obtaining by a
     transient or patron of the use or occupancy of a hotel room from
     which consideration emanates to the operator under an express or
     an implied contract.
        "Transient."  An individual who obtains an accommodation in a
     hotel for the individual by means of registering at the facility
     for the temporary occupancy of any room for the personal use of
     that individual by paying to the operator of the facility a fee
     in consideration for the use.

Last modified: November 27, 2007