Pennsylvania Act 2008-80 — COMMUNITY AND ECONOMIC IMPROVEMENT ACT - PHILADELPHIA HOSPITALITY PROMOTION TAX AND APPORTIONMENT OF REVENUE

Act text

COMMUNITY AND ECONOMIC IMPROVEMENT ACT - PHILADELPHIA HOSPITALITY
                PROMOTION TAX AND APPORTIONMENT OF REVENUE
                 Act of Jul. 11, 2008, P.L. 1023, No. 80              Cl. 53
                             Session of 2008
                               No. 2008-80

     HB 2167

                                  AN ACT

     Amending the act of December 21, 1998 (P.L.1307, No.174),
        entitled "An act relating to cities of the first class,
        establishing Neighborhood Improvement Districts; conferring
        powers and duties on municipal corporations and Neighborhood
        Improvement Districts; and providing for annual audits and
        for tourism and marketing," authorizing the Philadelphia
        hospitality promotion tax; providing for apportionment of
        revenue; and making editorial changes.

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

        Section 1.  Section 3 of the act of December 21, 1998
     (P.L.1307, No.174), known as the Community and Economic
     Improvement Act, is amended by adding a definition to read:
      Section 3.  Definitions.
        The following words and phrases when used in this act shall
     have the meanings given to them in this section unless the
     context clearly indicates otherwise:
        * * *
        "Tourist promotion agency."  An agency designated by the
     council of the city in which the Pennsylvania Convention Center
     is located to be eligible for grants from the Department of
     Commerce pursuant to the former act of April 28, 1961 (P.L.111,
     No.50), known as the Tourist Promotion Law.
        Section 2.  Sections 10 and 11 of the act are amended to
     read:
      Section 10.  Tourism and marketing tax.
        In addition to the hotel room rental tax imposed under
     [section 23 of the act of June 27, 1986 (P.L.267, No.70), known
     as the Pennsylvania Convention Center Authority Act,] 64 Pa.C.S.
     Ch. 60 (relating to Pennsylvania Convention Center Authority)
     and under section 202 of the act of March 4, 1971 (P.L.6, No.2),
     known as the Tax Reform Code of 1971, the council of the city in
     which a convention center is located is hereby authorized 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 section 11 and shall be known
     as the tourism and marketing tax. The rate of tax imposed under
     this section by the council of the city in which the convention
     center is located shall not exceed 1%.
      Section 11.  Special tourism and marketing tax fund.
        There shall be deposited annually in a special fund
     established pursuant to [section 23(e) of the act of June 27,
     1986 (P.L.267, No.70), known as the Pennsylvania Convention
     Center Authority Act,] 64 Pa.C.S. § 6025 (relating to hotel room
     rental tax; continuation of existing tax), for the use of the
     regional attractions marketing agency, all revenues received
     from the tax imposed under section 10. All expenditures from the
     special fund established under [section 23(e) of the
     Pennsylvania Convention Center Authority Act] 64 Pa.C.S § 6025
     shall be used by the regional attractions marketing agency for
     direct advertising efforts directed towards advertising and
     publicizing tourist attractions in the area served by the
     agency, promoting and attracting tourism to facilities in the
     area served by the agency and promoting and otherwise
     encouraging the use of the facilities in the area served by the
     agency by the public as a whole.
        Section 3.  The act is amended by adding sections to read:
      Section 11.1.  Philadelphia hospitality promotion tax.
        In addition to the tourism and marketing tax imposed under
     section 10 and the hotel room rental taxes imposed under 64
     Pa.C.S. Ch. 60 (relating to Pennsylvania Convention Center
     Authority) and under section 202 of the act of March 4, 1971
     (P.L.6, No.2), known as the Tax Reform Code of 1971, the council
     of the city in which the Pennsylvania Convention Center is
     located is hereby authorized 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 section 11.2 and shall be known as the Philadelphia
     hospitality promotion tax. The rate of tax imposed under this
     section by the council of the city in which the Pennsylvania
     Convention Center is located shall not exceed 1.5%.
      Section 11.2.  Special Philadelphia hospitality promotion tax
                    fund.
        There shall be deposited annually in a special fund
     established pursuant to 64 Pa.C.S. § 6025 (relating to hotel
     room rental tax; continuation of existing tax) all revenues
     received from the tax imposed under section 11.1 to be used as
     follows:
            (1)  Revenues shall be distributed to the regional
        attractions marketing agency and used by it for direct
        advertising efforts directed towards advertising and
        publicizing tourist attractions in the area served by such
        agency, promoting and attracting tourism to facilities in the
        area served by the agency and promoting and otherwise
        encouraging the use of the facilities in the area served by
        such agency by the public as a whole.
            (2)  Revenues shall be distributed to the tourist
        promotion agency and used by it to promote the use of the
        expanded Pennsylvania Convention Center and to promote the
        area served by the tourist promotion agency, including in
        international markets.
            (3)  Revenues shall be used to further support the
        expanded Pennsylvania Convention Center.
        Section 4.  This act shall take effect immediately.

     APPROVED--The 11th day of July, A. D. 2008.

     EDWARD G. RENDELL