16 Pa. Stat. § 2399.23

Current through Pa Acts 2024-53, 2024-56 through 2024-111

Section 2399.23 - Hotel room rental tax

(a) The county in which the convention center is located is hereby authorized to impose an excise tax on the consideration received by each operator of a hotel within the market area 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 county pursuant to subsection (e) and shall be known as the Hotel Room Rental Tax.

(b) The rate of tax imposed under this section by the county in which the convention center is located shall not exceed five per centum.

(c) Eighty per centum of revenues to be received from taxes imposed pursuant to this section shall be annually deposited in the special fund required under subsection (d) for the use of the authority for convention center purposes. Twenty per centum of the revenues to be received from taxes imposed pursuant to this section shall be deposited within thirty days of collection in the tourist promotion agency fund required under subsection (d) until disbursed as provided below.

(d) The treasurer of each county electing to impose the tax authorized under this section is hereby directed to collect the tax and:

(1) to deposit eighty per centum of the revenues received from the tax in special funds established for purposes set forth in this section; and

(2) to deposit twenty per centum of the revenues received by the tax in the tourist promotion agency fund until disbursed pursuant to subsection (g).

Interest on moneys deposited in the funds shall accrue proportionately to the respective funds as provided in this section. The treasurer is hereby authorized to establish rules and regulations concerning the collection of the tax, which collection shall occur not more often than monthly nor less often than quarterly.

(e) Expenditures from the fund established pursuant to subsection (d) for the authority shall be used by the authority for the following purposes:

(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, but not limited to, 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.

(f) 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 does hereby pledge to and agree 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, nor will it authorize a county to, reduce the rate of tax imposed for convention center purposes until all bonds so secured by the pledge of the authority, together with interest, are fully met and discharged.

(g) Provided that no event of default has occurred and is continuing with respect to any bonds, notes or other indebtedness of an authority incurred to finance the construction of a convention center, revenues received from the tax deposited to the tourist promotion agency fund required under subsection (d) shall be disbursed by each county to the tourist promotion agency within ten days of receipt thereof provided that the county shall have no obligation to invest any funds deposited to the tourist promotion agency fund.

(h) Each tax year for any tax imposed hereunder shall run concurrently with the county's fiscal year.

(h.1) An audited report on the income and expenditures incurred by a tourist promotion agency receiving any revenues from the tax authorized under this section shall be submitted annually by the tourist promotion agency to the county commissioners.

(i) The tax levied under this section shall expire when all bonds issued by a county under this subdivision have been fully met and discharged.

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

"Consideration" shall mean 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 a temporary period.

"Convention center" shall mean any land, improvement, structure, building, or part thereof, or property interest therein, whether owned by or leased by or to or otherwise acquired by an existing authority, appropriate for any of the following: large public assemblies, the holding of conventions, conferences, trade exhibitions and other business, social, cultural, scientific and public interest events, and all facilities, furniture, fixtures and equipment necessary or incident thereto, including meeting rooms, dining rooms, kitchens, ballrooms, reception areas, registration and prefunction areas, truck loading areas, including access thereto, accessways, common areas, lobbies, offices and areas appurtenant to any of the preceding, together referred to as the main convention area, and also including other buildings, structures or facilities for use in conjunction with the foregoing, including, but not limited to, provision for off-street parking, retail areas and other improvements related to the center owned by or leased by or to an existing authority for the purpose of producing revenues to assist in defraying the costs or expenses of the convention center.

"Hotel" shall mean a hotel, motel, inn, guesthouse or other building located within the market area which holds itself out by any means, including advertising, license, registration with an innkeeper's group, convention listing association, travel publication or similar association or with a government agency, as being available to provide overnight lodging or use of facility space for consideration to persons seeking temporary accommodation. The term includes a place which advertises to the public at large or a 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. The term also includes a place recognized as a hostelry, provided that portions of a facility which are devoted to persons who have established permanent residence shall not be included in this definition. The term does not include a bed and breakfast homestead or inn as defined in the act of May 23, 1945 (P.L. 926, No. 369), referred to as the Public Eating and Drinking Place Law.

"Market area" shall mean:

(1) With respect to a county in which there is more than one city of the third class, the entire county.

(2) With respect to a county in which there is only one city of the third class, one of the following:

(i) That city and the area within the county which is not more than fifteen miles from the site of the convention center.

(ii) That city and the area within the county which, as determined by the board of commissioners of the county imposing the tax, derives a material benefit from the existence of the convention center within the county. The owner of a hotel affected by a determination by the board under this subclause may challenge the determination by filing a petition in the court of common pleas in the judicial district where the determination was made.

"Occupancy" shall mean the use or possession or the right to the use or possession by a person other than a permanent resident of a 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" shall mean any individual, partnership, nonprofit or profit-making association or corporation or other person or group of persons who maintain, operate, manage, own, have custody of or otherwise possess the right to rent or lease overnight accommodations in a hotel to the public for consideration.

"Patron" shall mean any person who pays the consideration for the occupancy of a room or rooms in a hotel.

"Permanent resident" shall mean any person who has occupied or has the right to occupy a room or rooms in a hotel as a patron or otherwise for a period exceeding thirty consecutive days.

"Room" shall mean 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 therein.

"Temporary" shall mean a period of time not exceeding thirty consecutive days.

"Tourist promotion agency" shall mean the agency designated by the governing body of a county or county seat 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" shall mean 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" shall mean an individual who obtains an accommodation in any hotel for himself by means of registering at the facility for the temporary occupancy of a room for the personal use of that individual by paying to the operator of the facility a fee in consideration therefor.

16 P.S. § 2399.23

1955, Aug. 9, P.L. 323, No. 130, § 2399.23, added 1999, Nov. 3, P.L. 461, No. 42, § 3, imd. effective. Amended 2005, July 5, P.L. 38, No. 12, § 6, effective 9/6/2005.