§ 17352 — Hotel room rental tax

(a) Imposition.--The county in which the authority's convention centers are located or will be located may 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.

(b) Collection.--The tax shall be collected by the operator from the patron of the room and paid over to the county and shall be known as the Hotel Room Rental Tax.

(c) Rate.--The rate of tax imposed under this section by the county in which the authority's convention centers are located may not exceed 7%.

(d) Distribution of revenue.--Subject to the deduction of the administrative fee authorized by subsection (o), the revenues shall be distributed as follows:

(1) The revenues from the special funds required under subsection (e) attributable to the levy of the first 5% of the tax shall be distributed as follows:

(i) Eighty percent shall be deposited within two working days into the special fund required under subsection (e) for the use of the authority.

(ii) Twenty percent shall be deposited within two working days into the tourist promotion agency fund required under subsection (e) until disbursed under subsection (j).

(2) The revenues from the special fund attributable to the levy of the remaining 2% of the tax shall be deposited into the tourist promotion agency fund required under subsection (e) until disbursed under subsection (j).

(e) Duty of treasurer.--The treasurer of each county electing to impose the tax authorized under this section shall collect the tax and, subject to the deduction of the administrative fee authorized by subsection (o):

(1) deposit 80% of the revenues attributable to the levy of the first 5% of the tax in a special fund established for the purposes set forth in this section;

(2) deposit 20% of the revenues attributable to the levy of the first 5% of the tax in the tourist promotion agency fund until disbursed under subsection (j); and

(3) deposit the revenues attributable to the levy of the remaining 2% of the tax in the tourist promotion agency fund until disbursed under subsection (j).

(f) Deposit of interest.--Interest on money deposited into the funds shall accrue proportionately as provided under subsection (e).

(g) Rules and regulations.--The treasurer may establish rules and regulations concerning the collection of the tax, which may not occur more than monthly nor less than quarterly.

(h) Special fund.--The authority shall have the right to draw upon the special fund established under subsection (e)(1) for the authority. Expenditures from the special fund 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, expanding, improving, maintaining, furnishing, fixturing and equipping convention centers.

(3) Costs associated with the development of convention centers, including design, engineering and feasibility costs.

(4) Costs associated with the operation and management of convention centers.

(5) Costs associated with promoting, marketing and otherwise encouraging use of the convention centers.

(6) General purposes of the authority.

(7) Grants authorized under section 17335(e) (relating to purpose and powers of authorities).

(i) Security.--If and to the extent that the authority pledges the authority's share of the proceeds of the tax authorized by this section as security for the payment of bonds issued by the authority for convention centers, the following shall apply:

(1) 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 will not, nor will the Commonwealth authorize a county to, reduce the rate of tax imposed for convention centers until all bonds secured by the pledge of the authority, together with interest, are fully met and discharged.

(2) The county may not reduce the rate of tax imposed for convention centers until all bonds secured by the pledge of the authority, together with interest, are fully met and discharged.

(j) Disbursement of money.--Revenues received from the tax deposited into the tourist promotion agency fund required under subsection (f) shall be disbursed by each county to the tourist promotion agency within 10 days of receipt of the revenues.

(k) Fiscal year.--Each tax year any tax imposed under this section shall run concurrently with the county's fiscal year.

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

(m) Penalty.--Notwithstanding any provision of law to the contrary, in counties of the third class having a population under the 1990 Federal decennial census in excess of 415,000 residents but less than 500,000 residents, a penalty of 1.5% per month shall be imposed for failure to timely remit the tax authorized by this section.

(n) Lien.--In addition to other remedies available for collection of debts, the county may also file a lien upon the hotel in the name of and for the use of the county as provided by law for municipal claims.

(o) Administrative fee.--For purposes of defraying the costs of collecting the tax imposed under this section and otherwise performing the county's obligations under this subchapter, the county may deduct and retain an administrative fee from the taxes collected under this subsection. The administrative fee shall be established by the county but may not exceed in any tax year the lesser of:

(1) 2% of all taxes collected hereunder; or

(2) $40,000, which amount shall be adjusted biannually, beginning two years after the date of enactment, by the percentage growth in the Consumer Price Index for All Urban Consumers as determined by the United States Department of Labor.

(p) Regulations.--The county shall have the authority to prescribe rules and regulations as the county determines are appropriate to administer the provisions of this section.

(q) 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 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 or convention center facility."Any land, improvement, structure, building or part thereof, or property interest, whether owned by or leased by or to or otherwise acquired by an authority, appropriate for any of the following: large public assemblies, the holding of conventions, conferences, trade exhibitions and other business, social, cultural, scientific, sports, recreational, artistic and public interest events, performances and exhibitions and all facilities, furniture, fixtures and equipment necessary or incident thereto, including hotels, meeting rooms, dining rooms, kitchens, ballrooms, reception areas, registration and prefunction areas, locker rooms, practice areas and equipment, training areas and equipment, truck loading areas, including access and accessways, including, but not limited to, tunnels, overhead walkways, escalators, elevators and other connections to nearby or adjoining buildings or facilities, regardless of whether the buildings or facilities constitute convention centers or are owned or controlled by the authority, common areas, lobbies, offices and areas appurtenant to any of the preceding, and also including other land, buildings, structures or facilities for use or planned for use in conjunction with the foregoing, including landscaping, buffer areas, off-street parking, retail areas and other improvements related to a convention center owned by or leased by or to an authority, regardless of whether the improvements are for the purpose of producing revenues to assist in defraying the costs or expenses of a convention center.

"Hotel."A hotel, motel, inn, guest house or other building or complex of buildings 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, and the following shall apply:

(1) The term includes:

(i) A place which advertises to the general public or a segment of the general public that it will provide beds, sanitary facilities or other space for a temporary period to members of the general public.

(ii) A place recognized as a hostelry.

(2) The term does not include portions of a facility which are devoted to individuals who have established permanent residence.

(3) The term does not include a bed and breakfast homestead or inn as defined in the former act of May 23, 1945 (P.L.926, No.369), referred to as the Public Eating and Drinking Place Law.

"Market area."With respect to a county in which there is more than one city of the third class, the entire county. With respect to a county in which there is only one city of the third class, one of the following, as selected by the governing body of the county:

(1) That city and the area within the county which is not more than 15 miles from the city limits of the county seat.

(2) That city and the area within the county which, as determined by the governing body 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 governing body under this subparagraph may challenge the determination by filing a petition in the court of common pleas in the judicial district in which the determination was made.

"Occupancy."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."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."An individual who pays the consideration for the occupancy of a room or rooms in a hotel.

"Permanent resident."An individual 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 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 therein.

"Temporary."A period of time not exceeding 30 consecutive days.

"Tourist promotion agency."The agency designated by the governing body of a county or county seat in which the convention centers are located to be eligible for grants from the Department of Community and Economic Development under the act of July 4, 2008 (P.L.621, No.50), known as the Tourism Promotion Act.

"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 implied contract.

"Transient."An individual who obtains an accommodation in any hotel for the individual 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 for the accommodation.

"Treasurer."The elected treasurer of the county or, if there is no elected treasurer, another official or agent of the county as may be designated by the county to collect and account for the tax authorized by this section.