Pennsylvania Act 2008-76 — GENERAL LOCAL GOVERNMENT CODE (53 PA.C.S.) - OATHS OF OFFICE AND HOTEL ROOM RENTAL TAX

Act text

GENERAL LOCAL GOVERNMENT CODE (53 PA.C.S.) - OATHS OF OFFICE AND HOTEL
                             ROOM RENTAL TAX
                  Act of Jul. 9, 2008, P.L. 999, No. 76               Cl. 53
                             Session of 2008
                               No. 2008-76

     SB 1332

                                  AN ACT

     Amending Title 53 (Municipalities Generally) of the Pennsylvania
        Consolidated Statutes, in general provisions, providing for
        form of oaths of office; and in other subjects of taxation,
        providing for hotel room rental.

        The General Assembly of the Commonwealth of Pennsylvania
     hereby enacts as follows:

        Section 1.  Chapter 11 of Title 53 of the Pennsylvania
     Consolidated Statutes is amended by adding a subchapter to read:
                               SUBCHAPTER D
                         MISCELLANEOUS PROVISIONS
     Sec.
     1141.  Form of oaths of office.
      § 1141.  Form of oaths of office.
        Whenever an elected or appointed official of a municipality
     is required to take, subscribe or file an oath or affirmation of
     office, the oath or affirmation shall be in the form prescribed
     in this section, as follows:
        I do solemnly swear (or affirm) that I will support, obey and
        defend the Constitution of the United States and the
        Constitution of this Commonwealth and that I will discharge
        the duties of my office with fidelity.
        Section 2.  Chapter 87 of Title 53 is amended by adding a
     subchapter to read:
                               SUBCHAPTER C
                           MISCELLANEOUS TAXES
     Sec.
     8721.  Hotel room rental.
      § 8721.  Hotel room rental.
        (a)  Imposition.--
            (1)  The county commissioners in each county of the
        second class are authorized to impose an excise tax at 5% 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 3% 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)  Counties of the second class.--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 paragraph (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 paragraph (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 of paying 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 paragraph (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 paragraph (4), a 5% fee
        shall be paid to the county for collecting the tax.
            (3)  Except as set forth in paragraph (4), all remaining
        revenue from the tax received by the county, after paying the
        amounts set forth in paragraphs (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 paragraph (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 paragraphs (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 paragraph (2).
                (ii)  Second:
                    (A)  to the trustee for the bonds in accordance
                with the provisions 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
                paragraph (2.1):
                        (I)  in full; or
                        (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 paragraph (1).
                (iv)  Fourth, as set forth in paragraph (3).
            (4.1)  Paragraph (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
        for a period of three years from the date of discontinuation
        of operation or closure. The following apply:
                (i)  During this period, the municipality may use
            revenue from the tax for debt service on the
            construction, reconstruction, operation or maintenance of
            a convention center or exhibition hall in the
            municipality.
                (ii)  If, during this period, no convention center or
            exhibition hall is operating or under construction, the
            municipality shall hold the revenue in the special
            account under paragraph (2), which is separate from all
            other municipal revenue, solely for the purpose of the
            construction of a convention center or exhibition hall in
            the municipality.
                (iii)   At the end of this period, if a convention
            center or exhibition hall does not operate or if the
            construction of a new convention center or exhibition
            hall in the municipality has not reached substantial
            completion, the revenue from the tax shall be deposited
            by the county in the economic development, community
            infrastructure and tourism fund maintained by the county.
        (c)  Counties of the second class A.--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)  Expenditures in counties of the second class.--
            (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 a convention 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)  Expenditures in counties of the second class A.--
            (1)  In counties of the second class A, expenditures from
        the 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 and business
            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, direct sales
            and participation in travel trade shows.
            (2)  The county commissioners may deduct from the funds
        collected any direct or indirect costs attributable to the
        collection of the tax.
        (f)  Effectiveness of provisions.--
            (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)  Taxable years.--Each taxable year for a tax imposed
     under this section shall run concurrently with the calendar
     year.
        (h)  Definitions.--As used in this section, the following
     words and phrases shall have the meanings given to them in this
     subsection:
        "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;
            (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."  Any of the following:
            (1)  Any hotel, motel, inn, guest house or other building
        located within the taxing jurisdiction 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 persons
        seeking temporary accommodation.
            (2)  A place which advertises to the public at large or a
        segment of the public at large that it will provide beds,
        sanitary facilities or other space for a temporary period to
        members of the public at large.
            (3)  A place recognized as a hostelry.
     The term does not include portions of the facility which are
     devoted to individuals who have established permanent residence.
        "Municipality."  Notwithstanding section 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 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.
        "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 30 consecutive days.
        "Recognized tourist promotion agency."  As defined in section
     3(6) of the former act of April 28, 1961 (P.L.111, No.50), known
     as the Tourist Promotion Law and in accordance with the Tourist
     Promotion Law, the nonprofit corporation, organization,
     association or agency:
            (1)  which is and has been engaged in planning and
        promoting programs designed to stimulate and increase the
        volume of tourist, visitor and vacation business within
        counties it serves; and
            (2)  which is recognized by the Department of Community
        and Economic Development.
        "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 one
     bed 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 90% of the work on the main convention or
        exhibition area is complete.
        "Temporary."  A period of time not exceeding 30 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.
        Section 3.  Repeals are as follows:
            (1)  The General Assembly declares that the repeal under
        paragraph (2) is necessary to effectuate the addition of 53
        Pa.C.S. § 8721.
            (2)  Section 1970.2 of the act of July 28, 1953 (P.L.723,
        No.230), known as the Second Class County Code, is repealed.
            (3)  All acts and parts of acts are repealed insofar as
        they are inconsistent with this act.
        Section 4.  The addition of 53 Pa.C.S. § 8721 is a
     continuation of section 1970.2 of the Second Class County Code.
     Except as otherwise provided in 53 Pa.C.S. § 8721, all
     activities initiated under section 1970.2 of the Second Class
     County Code shall continue and remain in full force and effect
     and may be completed under 53 Pa.C.S. § 8721. Orders,
     regulations, rules and decisions which were made under section
     1970.2 of the Second Class County Code and which are in effect
     on the effective date of section 3(2) of this act shall remain
     in full force and effect until revoked, vacated or modified
     under 53 Pa.C.S. § 8721. Contracts, obligations and collective
     bargaining agreements entered into under section 1970.2 of the
     Second Class County Code are not affected nor impaired by the
     repeal of section 1970.2 of the Second Class County Code.
        Section 5.  This act shall take effect in 60 days.

     APPROVED--The 9th day of July, A. D. 2008.

     EDWARD G. RENDELL