In this Chapter the following words and phrases shall have the meanings given to them in this Section unless the context clearly requires otherwise:
(1) Authority or Pennsylvania Convention Center Authority. An agency and public instrumentality of this Commonwealth and a body politic and corporate created pursuant to the Act of June 27, 1986 (P.L. 124, No. 70).
(1.1) Booking Agent. Any person or entity that facilitates reservations or collects payment for hotel accommodations, including limited lodging as defined in subsection 14-604(13) of the Code, on behalf of or for an operator. Merely publishing an advertisement for accommodations does not make the publisher a booking agent. 425
(2) 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 any temporary period.
(3) Convention Center. Any land, improvement, structure, building, or part thereof, or property interest therein, whether owned by or leased by or to or otherwise acquired by the 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, kitchen, ballrooms, reception areas, registration and pre-function areas, truck loading areas (including access thereto), access ways, common areas, lobbies, offices, and areas appurtenant to any of the aforesaid (together hereinafter "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 the authority for the purpose of producing revenues to assist in defraying any costs or expenses of the convention center.
(4) Department. The Department of Revenue of the City of Philadelphia.
(5) Hotel. A hotel, motel, inn, guesthouse or other building located within the City 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; any place which advertises to the public at large or any segment thereof that it will provide beds, sanitary facilities or other space for a temporary period to members of the public at large; any place recognized as a hostelry, provided that portions of such facility which are devoted to persons who have established permanent residence shall not be included in this definition.
(6) Occupancy. The use or possession or the right to the use or possession by any person other than a permanent resident of any 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.
(7) Operator. Any individual, partnership, non-profit 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 any hotel to the public for consideration, including the operator of limited lodging, as defined in subsection 14-604(13) of the Code. 426
(8) Patron. Any person who pays the consideration for the occupancy of a room or rooms in a hotel.
(9) Permanent resident. Any person who has occupied or has the right to occupy any room or rooms in a hotel as a patron or otherwise for a period exceeding thirty (30) consecutive days.
(9.1) Regional attractions marketing agency. The Greater Philadelphia Tourism Marketing Corporation. 427
(10) Room. A space in a hotel set aside for use and occupancy by patrons, or otherwise, for consideration, having at least one (1) bed or other sleeping accommodations provided therein.
(11) Substantial completion. Construction that is sufficiently completed in accordance with contract documents and certified by the convention center authority's architect or engineer, as modified by change orders which are subject to review and approval by the Secretary of the Budget of the Commonwealth and the chief financial officer of the City, so that the main convention area can be used, occupied or operated for its intended use. In no event shall a project be certified as substantially complete until at least ninety percent (90%) of the work on the main convention area is completed.
(12) Temporary. A period of time not exceeding thirty (30) consecutive days.
(13) Tourist promotion agency. The agency designated by the City Council to be eligible for grants from the Department of Commerce pursuant to the act of April 28, 1961 (P.L. 111, No. 50), 73 P.S. §§ 401 et seq., as amended, known as the "Tourist Promotion Law". By the ordinance approved June 24, 1965, the City Council of Philadelphia designated the Philadelphia Convention and Visitors Bureau to be the official tourist promotion agency for the City of Philadelphia.
(14) 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.
(15) Transient. Any individual who obtains an 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 thereof.
Notes
| 425 | |
| 426 | |
| 427 | Added, Bill No. 990116 (approved May 6, 1999), effective July 1, 1999. |
(1) There is hereby imposed 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 Sections 19-2403 and 19-2405 and shall be known as the Hotel Room Rental Tax. However, a booking agent, acting for an operator, may collect and remit the tax, and an operator shall not be responsible for collecting and remitting the Hotel Room Rental Tax on any transaction for which it has received confirmation that the booking agent has collected and remitted the tax, and further provided that in the case of a booking agent acting for an operator of limited lodging, as defined in subsection 14-604(13) of the Code, in connection with the collection of the consideration for the rental from the purchaser, the booking agent shall collect and remit the tax. 429
(2) The rate of tax shall be:
(a) three percent (3%) on the effective date of this Chapter;
(b) five percent (5%) effective 12:01 a.m. of the eighth (8th) day following the effective date of this Chapter;
(c) six percent (6%) effective thirty (30) days after the substantial completion of the main convention area; and
(d) in the event that construction of the main convention area is not commenced by December 31, 1988, the rate of tax effective January 1, 1989, and thereafter, shall be three percent (3%) subject to the terms and conditions of subsection 19-2403(2).
The total rate of tax imposed pursuant to this Section and Section 202 of Article II of the Act of March 4, 1971 (P.L. 6, No. 2), known as the Tax Reform Code of 1971 shall not exceed twelve percent (12%). In the event the rate of tax imposed pursuant to Section 202 of Article II of the Tax Reform Code of 1971 shall exceed six percent (6%) and the rate of tax imposed pursuant to this Section shall have reached six percent (6%), the rate of tax imposed pursuant hereto shall be reduced in order that the aggregate tax rate not exceed twelve percent (12%), effective the same date as any increase in tax imposed pursuant to Section 202 of Article II of the Tax Reform Code of 1971.
Notes
| 428 | Caption amended, Bill No. 990116 (approved May 6, 1999), effective July 1, 1999. |
| 429 |
(1) There is hereby imposed, in addition to the tax imposed by the preceding Section 19-2402 and notwithstanding the maximum rate of tax set forth in said Section, an excise tax of one percent (1%) 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 Sections 19-2403 and 19-2405 and shall be known as the Tourism and Marketing Tax. However, a booking agent, acting for an operator, may collect and remit the tax, and an operator shall not be responsible for collecting and remitting the Tourism and Marketing Tax on any transaction for which it has received confirmation that the booking agent has collected and remitted the tax, and further provided that in the case of a booking agent acting for an operator of limited lodging, as defined in subsection 14-604(13) of the Code, in connection with the collection of the consideration for the rental from the purchaser, the booking agent shall collect and remit the tax.
Notes
| 430 |
(1) There is hereby imposed, in addition to the tax imposed by the preceding Sections 19-2402 and 19-2402.1 and notwithstanding any maximum rate of tax set forth therein, an excise tax of one and two tenths percent (1.2%) 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.
(2) There is hereby imposed, in addition to the tax imposed by the preceding Sections 19-2402 and 19-2402.1 and subsection (1) hereof and notwithstanding any maximum rate of tax set forth therein, an excise tax of three tenths of one percent (0.3%) 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.
(3) The taxes imposed pursuant to this Section shall be collected by the operator from the patron of the room and paid over to the City pursuant to Sections 19-2403 and 19-2405 and shall collectively be known as the Philadelphia Hospitality Promotion Tax. However, a booking agent, acting for an operator, may collect and remit the tax, and an operator shall not be responsible for collecting and remitting the Philadelphia Hospitality Promotion Tax on any transaction for which it has received confirmation that the booking agent has collected and remitted the tax, and further provided that in the case of a booking agent acting for an operator of a dwelling unit used for limited lodging, as defined in subsection 14-604(13) of the Code, in connection with the collection of the consideration for the rental from the purchaser, the booking agent shall collect and remit the tax. 432
Notes
| 431 | |
| 432 |
(1) The Department shall collect the tax from the operator or booking agent and deposit the revenues received from the tax in special funds established for purposes set forth herein. Interest on moneys deposited in the funds shall accrue proportionately to the respective funds as provided herein. The Department is hereby authorized to establish rules and regulations concerning the collection of the tax. 433
(2) With respect to the revenues received pursuant to Section 19-2402, relating to Imposition and Rate of Hotel Room Rental Tax: There shall be deposited in a special fund, established pursuant to subsection (1), for the use of tourist promotion agencies for tourist promotion activities, one hundred percent (100%) of all revenues received from taxes imposed pursuant to this Section prior to 12:01 a.m. of the eighth (8th) day following the effective date of this Chapter. Upon the effective date of this Chapter, there shall be deposited in a special fund, established pursuant to subsection (1), for the use of tourist promotion agencies for tourist promotion agency activities: 434
(a) Sixty percent (60%) of all revenues received from taxes imposed pursuant to this Section for the fiscal year of the City commencing July 1, 1986, until the next fiscal year of the City following substantial completion of the main convention area.
(b) Forty-one and two-thirds percent (41-2/3%) of all revenues received pursuant to this Section for the fiscal year of the City commencing after the substantial completion of the main convention area and each fiscal year thereafter ending prior to July 1, 1999.
(c) Thirty-three and one-third percent (33-1/3%) of all revenues received pursuant to this Section for the fiscal year of the City commencing on or after July 1, 1999, and each fiscal year thereafter ending prior to July 1, 2010.
(d) Twenty-nine and one hundred sixty-six thousandths percent (29.166%) of all revenues received pursuant to this Section for the fiscal year of the City commencing on or after July 1, 2010, and each fiscal year thereafter ending prior to July 1, 2015.
(e) Twenty-five percent (25%) of all revenues received pursuant to this Section for the fiscal year of the City commencing July 1, 2015, and thereafter.
The balance of revenues to be received from taxes imposed pursuant to this Section shall be deposited in a special fund, established pursuant to subsection (1), for the use of the authority for convention center purposes, provided that, notwithstanding the other provisions of this Chapter, in the event that construction of the main convention area is not commenced by December 31, 1988, all revenues received pursuant to this Chapter for the period after December 31, 1988, shall be used for tourist promotion agency purposes.
(3) With respect to the revenues received pursuant to Section 19-2402.1, relating to Imposition and Rate of Tourism and Marketing Tax: There shall be deposited in a special fund, established pursuant to subsection (1), for the use of the regional attractions marketing agency, one hundred percent (100%) of all revenues received from taxes imposed pursuant to this Section. 435
(a) Regional attractions marketing agency and Tourist promotion agency (collectively, the "Marketing and Tourism Agencies").
(.1) For revenues attributable to fiscal years 2009 through 2012: There shall be deposited in a special fund, established pursuant to subsection (1), for the use of the Marketing and Tourism Agencies, nineteen thirtieths (19/30) of all revenues received from taxes imposed pursuant to this Section.
(.2) For revenues attributable to fiscal years 2013 and thereafter:
(.a) The "Base Amount" for a fiscal year shall equal nineteen thirtieths (19/30) of all revenues received from taxes imposed pursuant to this Section, attributable to such fiscal year. The "Prior Year's Deposits" for a fiscal year shall equal the amount attributable to the immediately prior fiscal year deposited in the special fund for the use of the Marketing and Tourism Agencies.
(.b) If the Base Amount is less than or equal to the Prior Year's Deposits multiplied by one and twenty-five one-thousandths (1.025), there shall be deposited in a special fund, established pursuant to subsection (1), for the use of the Marketing and Tourism Agencies, an amount equal to the Base Amount.
(.c) If the Base Amount is greater than the Prior Year's Deposits multiplied by one and twenty- five one-thousandths (1.025), but less than the Prior Year's Deposits multiplied by one and six-hundredths (1.06), there shall be deposited in a special fund, established pursuant to subsection (1), for the use of the Marketing and Tourism Agencies, an amount equal to the Prior Year's Deposits multiplied by one and twenty-five one-thousandths (1.025).
(.d) If the Base Amount is greater than or equal to the Prior Year's Deposits multiplied by one and six-hundredths (1.06), there shall be deposited in a special fund, established pursuant to subsection (1), for the use of the Marketing and Tourism Agencies, an amount equal to the Base Amount minus the product formed by multiplying Prior Year's Deposits by thirty-five one-thousandths (0.035).
(.3) All amounts deposited for the use of the Marketing and Tourism Agencies shall be divided equally between the Regional attractions marketing agency and the Tourist promotion agency.
(b) There shall be deposited in a special fund, established pursuant to subsection (1), for the support of the expanded Pennsylvania Convention Center, all revenues received from taxes imposed pursuant to this Section not deposited in the fund for the use of the Marketing and Tourism Agencies.
(a) There shall be deposited in a special fund, established pursuant to subsection (1), for the use of the Marketing and Tourism Agencies (as defined in subsection (3)), one hundred percent (100%) of all revenues received from taxes imposed pursuant to this Section.
(b) All amounts deposited for the use of the Marketing and Tourism Agencies shall be divided equally between the Regional attractions marketing agency and the Tourist promotion agency.
Notes
| 433 | Amended, Bill No. 150441-A (approved June 18, 2015), effective July 1, 2015. |
| 434 | Amended, Bill No. 990116 (approved May 6, 1999), effective July 1, 1999. |
| 435 | Added, Bill No. 990116 (approved May 6, 1999), effective July 1, 1999. Enrolled bill read "regional attractions, marketing agency". |
| 436 | |
| 437 | Added, Bill No. 120955 (approved January 14, 2013), effective July 1, 2013. |
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