(a)(1) The county commissioners in each county of the second class are authorized to impose an excise tax at five per centum on the consideration received by each operator of a hotel within the county from each transaction of renting a room or rooms to accommodate transients.(2) The county commissioners in each county of the second class A are authorized to impose an excise tax not to exceed five per centum on the consideration received by each operator of a hotel within the county from each transaction of renting a room or rooms to accommodate transients.(3) The tax shall be collected by the operator from the patron of the room and paid over to the county as in provided in this section.(b) The treasurer of each county of the second class electing to impose the tax authorized under this section is directed to collect the tax and to deposit the revenue received from the tax in a special fund. The revenues shall be distributed by the county commissioners as follows: (1) Except as set forth in clause (4), two-fifths of the revenue received by the county from the excise tax shall be distributed to a tourist promotion agency pursuant to section 2199.14 of the act of July 28, 1953 (P.L.723, No.230), known as the "Second Class County Code."(2) Except as set forth in clause (4), one-third of the tax collected by hotels within a municipality where a convention center or exhibition hall is located, less the cost of collecting the tax, shall, at the request of that municipality, be returned to that municipality for deposit in that municipality's special fund established solely for purposes ofpaying for promotional programs implemented by a nonprofit organization which are designed to stimulate and increase the volume of conventions and visitors within the municipality or as provided in clause (5), subject to the following requirements:(i) An audited report on the income and expenditures incurred by the municipality receiving funds from the excise tax on hotel room rentals shall be made annually to county.(ii) The members of the board of directors or other governing body of the nonprofit organization utilized by the municipality to provide the promotional programs shall be appointed by the governing body of the municipality.(2.1) Except as set forth in clause (4), a five per centum fee shall be paid to the county for collecting the tax.(3) Except as set forth in clause (4), all remaining revenue from the tax received by the county, after paying the amounts set forth in clauses (1), (2) and (2.1), shall be used for operational and maintenance expenditures of the convention center or exhibition hall as provided in subsection (d) and for regional tourist promotion activities.(4) Subject to clause (4.1), if bonds are issued by the public authority to provide permanent financing or refinancing of the expansion of and capital improvements to the convention center or exhibition hall, the revenue received from the tax and deposited in the special fund shall not be distributed as set forth in clauses (1) through (3) but shall be distributed by the county commissioners in the order of priority as follows: (i) First, to the payment of all amounts set forth in clause (2).(ii) Second: (A) to the trustee for the bonds in accordance with theprovisions of the indenture pursuant to which the bonds are issued, to be used for the payment of debt service on the bonds; and(B) to the payment of all amounts set forth in clause (2.1):(II) if the revenues are insufficient to make the payment in full, pro rata.(iii) Third, to the payment of all amounts set forth in clause (1).(iv) Fourth, as set forth in clause (3).(4.1) Clause (4) shall not apply to bonds issued subsequent to the permanent financing for purposes of completion or subsequent expansions or capital improvements.(5) If a convention center or exhibition hall discontinues operation in a municipality in which a convention center or exhibition hall is located, the municipality shall continue to collect and receive the tax, which shall be deposited by the municipality and used for the purposes as provided in clause (2).(c) The treasurer of each county of the second class A electing to impose the tax authorized under this section is directed to collect the tax and to deposit the revenue in a special fund established solely for purposes of travel and tourism promotion and advertising related to travel and tourism promotion. The treasurer is authorized to establish rules and regulations concerning the collection of the tax.(d)(1) In counties of the second class, expenditures from the fund established under subsection (b) shall be used for all purposes which a public authority may determine to be reasonably necessary to the support, operation and maintenance of aconvention center or exhibition hall, including the following:(i) Advertising and publicizing tourist attractions in the area served by the recognized tourist promotion agency.(ii) Promoting and otherwise encouraging the use of the facilities in the area served by the recognized tourist promotion agency by the public as a whole.(iii) Promoting and attracting conventions, exhibitions and other functions to utilize facilities in the area served by the recognized tourist promotion agency.(iv) Precompletion advertising and publicizing of any convention center or exhibition hall.(v) Promoting and attracting conventions, exhibitions and other functions to utilize the convention center or exhibition hall.(vi) Promoting and otherwise encouraging the use of the premises by the public as a whole or any segment of the public.(vii) Operating, furnishing and otherwise maintaining and equipping the premises and realty appurtenant to the premises.(viii) Furnishing and equipping the building and grounds.(2) It is the intention of this subsection that the receipts from any tax imposed under this section after payment of the distributions under subsection (b)(1), (2), (2.1), (3) and (4) be used in the county to offset the entire operating deficit, if any, of any convention center or exhibition hall including equally, shares of any cooperating political subdivision or agency of government incurred pursuant to any agreement. The operating deficit shall be determined by the public authority which is the designated operating agency of the convention center or exhibition hall.(e)(1) In counties of the second class A, expenditures fromthe fund established under subsection (c) shall be annually appropriated by the county commissioners for tourist promotion activities, to be executed by the recognized tourist promotion agency for the following: (i) Marketing the area served by the recognized tourist promotion agency as a leisure travel destination.(ii) Marketing the area served by the recognized tourist promotion agency as a convention, business or meeting travel destination.(iii) Marketing the area served by the recognized tourist promotion agency to the public as a whole for use of its tourist and convention facilities.(iv) Using all appropriate marketing tools to accomplish these purposes, including advertising, publicity, publications, direct marketing, sales, technology and participation in industry trade shows that attract tourists or travelers to the area served by the recognized tourist promotion agency.(v) Programs, expenditures or grants that directly and substantially relate to tourism or a business, convention or meeting travel destination within a county of the second class A, that augment and do not compete with private sector tourism or travel efforts and that improve and expand a county of the second class A as a destination market as deemed necessary by the recognized tourist promotion agency. The following shall apply to grants awarded under this subclause: (A) Grants shall have a cash or in-kind local match of at least twenty-five per centum.(B) Grants may not be used for signage that promotes a specific private entity on the situs of the entity, except where the signage carries the logo of a recognized tourist promotionagency.(vi) Any other tourism or travel marketing or promotion program, expenditure or project that does not compete with private sector tourism or travel efforts as deemed necessary by the recognized tourist promotion agency.(2) For the purposes of defraying the costs associated with the collection of the tax imposed under this section and otherwise performing their obligations under this section, the county commissioners of a county of the second class A may deduct and retain an administrative fee from the taxes collected under this section. The administrative fee shall be established by the county of the second class A and shall not exceed four per centum of the taxes collected in any taxable year.(3) As determined by a county of the second class A in consultation with the recognized tourist promotion agency, an audited report or financial statement of the income and expenditures incurred by a recognized tourist promotion agency receiving revenue from the tax authorized under this section shall be submitted annually by the recognized tourist promotion agency to the county commissioners.(4) A penalty of one and one-half per centum per month shall be imposed upon the operator of a hotel in a county of the second class A for failure to timely collect and remit the tax authorized by this section. In addition to other remedies available for collection of debts, a county of the second class A may file a lien upon the hotel in the name of the county and for the use of the county as provided by law.(f)(1) The provisions of this section relating to counties of the second class shall remain in force from year to year. The following apply:(i) Revenue in excess of amounts needed to pay the distributions under subsection (b.1)(1), (2), (2.1), (3) and (4) and to offset operating deficits under subsections (b.1)(3) and (d) shall be determined by the public authority and may be accumulated.(ii) At the discretion of the cooperating political subdivisions and the public authority, any revenue may be used to: (A) provide part or all of an annual payment to be paid by a county or a political subdivision under an agreement with a public authority created under the act of July 29, 1953 (P.L.1034, No.270), known as the "Public Auditorium Authorities Law," which has been designated as the operating agency for a convention center or exhibition hall; or(B) effect necessary expansion or further capital improvements.(2) The provisions of this section relating to counties of the second class A shall remain in force and effect for three years from February 14, 1986, and may be continued thereafter by ordinance or resolution of the county commissioners of the respective counties.(g) Each taxable year for a tax imposed under this section shall run concurrently with the calendar year.(h) 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: "Cabin." A permanent structure with beds and running water that is located on a campground on State land or private property and is available to provide overnight lodging for consideration to persons seeking temporary accommodations. Theterm does not include a yurt or walled tent.
"Consideration." Receipts, fees, charges, rentals, leases, cash, credits, property or other payment received by operators in exchange for or in consideration of the use or occupancy by a transient of a room in a hotel for a temporary period.
"Convention center or exhibition hall." A building or series of buildings:
(1) at least one of which contains a minimum of 75,000 gross square feet of exhibition space for shows and conventions;(2) which are not used for the retail sale of merchandise or part of any shopping center, mall or other retail center; and(3) a major function of which is to house meetings, exhibitions, shows, conventions, assemblies, convocations and similar gatherings. The term includes land appurtenant to the building or buildings."Cooperating political subdivision or agency of government." A city or public authority located in a county:
(1) within the boundaries of which a convention center or exhibition hall is planned or constructed; and(2) which shares with the county duties, obligations or privileges with respect to that convention center. "Hotel." A hotel, motel, inn, guesthouse, rooming house, bed and breakfast, homestead or other structure which holds itself out by any means, including advertising, license, registration with an innkeepers' group, convention listing association, travel publication or similar association or with a government agency, as being available to provide overnight lodging for consideration to persons seeking temporary accommodation; any place which advertises to the public at large or any segment thereof that it will provide beds, sanitary facilities or otherspace for a temporary period to members of the public at large; any place recognized as a hostelry; or any cabin. The term does not include
any of the following:
(1) A charitable institution.(2) A portion of a facility that is devoted to persons who have an established permanent residence.(3) A college or university student residence hall currently occupied by students enrolled in a degree program.(4) An educational or religious institution camp for children, including a camp registered under the act of November 10, 1959 (P.L.1400, No.497), entitled "An act providing for the annual registration of organized camps for children, youth and adults; defining the duties of the Department of Health of the Commonwealth of Pennsylvania; and prescribing penalties."(7) Part of a campground that is not a cabin."Municipality." Notwithstanding 53 Pa.C.S. § 8401 (relating to definitions), a township or borough or a home rule municipality which was formerly a township or borough.
"Occupancy." The use or possession or the right to the use or possession by any person other than a permanent resident of aroom 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.
"Operating deficit." The excess of expenses over receipts from the operation and management of a convention center or exhibition hall.
"Operator." Any individual, partnership, nonprofit or profit-making association or corporation or other person or group of persons that 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." A person that pays the consideration for the occupancy of a room in a hotel.
"Permanent resident." An individual who has occupied or has the right to occupancy of a room in a hotel as a patron or otherwise for a period exceeding thirty consecutive days.
"Recognized tourist promotion agency." The nonprofit corporation, organization, association or agency which is engaged in planning and promoting programs designed to stimulate and increase the volume of tourist, visitor and vacation business within a county and certified by the county pursuant to the act of July 4, 2008 (P.L.621, No.50), known as the "Tourism Promotion Act."
"Regional tourist promotion activities." Services, activities, facilities and events, which result in a significant number of nonresidents visiting a county of the second class for recreational, cultural or educational purposes.
"Room." A space in a hotel set aside for use and occupancy by patrons, or otherwise, for consideration, having at least onebed or other sleeping accommodation.
"Substantial completion." Construction which is sufficiently completed in accordance with contract documents and certified by the convention center authority's architect or engineer, as modified by change orders so that:
(1) the main convention area can be used, occupied or operated for its intended use; and(2) at least ninety per centum of the work on the main convention or exhibition area is complete. "Temporary." A period of time not exceeding thirty consecutive days.
"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 accommodation in any hotel for himself 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 accommodation.
Added by P.L. TBD 2016 No. 18, § 3, eff. 4/20/2016.