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PA HB1852

PA HB1852
In hotel occupancy tax, further providing for Tourism Promotion Fund.


summary

Introduced
09/09/2025
In Committee
09/09/2025
Crossed Over
Passed
Dead

Introduced Session

2025-2026 Regular Session

Bill Summary

Amending the act of March 4, 1971 (P.L.6, No.2), entitled "An act relating to tax reform and State taxation by codifying and enumerating certain subjects of taxation and imposing taxes thereon; providing procedures for the payment, collection, administration and enforcement thereof; providing for tax credits in certain cases; conferring powers and imposing duties upon the Department of Revenue, certain employers, fiduciaries, individuals, persons, corporations and other entities; prescribing crimes, offenses and penalties," in hotel occupancy tax, further providing for Tourism Promotion Fund.

AI Summary

This bill amends the Tax Reform Code of 1971 to modify how hotel occupancy tax revenues are collected and allocated through the Tourism Promotion Fund. Beginning in the 2025-2026 fiscal year, the bill establishes a specific allocation framework for the fund: $10 million will be directed to the department for tourism promotion, with the remaining funds distributed as follows - 65% for additional tourism promotion, 10% to the Pennsylvania Historical and Museum Commission for museum assistance grants, and 25% to the Pennsylvania Council on the Arts for arts grants. The bill places restrictions on fund usage, including limiting that no more than 50% of available funds can be used for tourism entity marketing operations or special events, and no single recipient can receive more than 15% of total available funds (with exceptions for statewide tourism promotion contracts). Additionally, the funds cannot be used for capital projects or building-related expenses. The bill requires the department to publish guidelines for fund usage and stipulates that certain taxes collected by booking agents, including those from accommodation fees, will be deposited into this fund. The legislation will take effect on July 1, 2025, or immediately thereafter.

Committee Categories

Business and Industry

Sponsors (21)

Last Action

Referred to Tourism, Recreation & Economic Development (on 09/09/2025)

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