An Act amending the act of March 4, 1971 (P.L.6, No.2), known as the Tax Reform Code of 1971, in hotel occupancy tax, further providing for Tourism Promotion Fund.

PRINTER'S NO. 2287
THE GENERAL ASSEMBLY OF PENNSYLVANIA
HOUSE BILL
No. 1852
Session of
2025
INTRODUCED BY CIRESI, KHAN, SANCHEZ, GIRAL, MALAGARI, KENYATTA,
BRIGGS, DONAHUE, NEILSON, HILL-EVANS, HOWARD, STEELE,
HOHENSTEIN, DALEY, PASHINSKI, GREEN, MADDEN, CERRATO, CEPEDA-
FREYTIZ, BOYD AND BOROWSKI, SEPTEMBER 8, 2025
REFERRED TO COMMITTEE ON TOURISM, RECREATION AND ECONOMIC
DEVELOPMENT, SEPTEMBER 9, 2025
AN ACT
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.
The General Assembly of the Commonwealth of Pennsylvania
hereby enacts as follows:
Section 1. Section 212(b), (c.1), (c.2)(1) and (3) and (c.3)
of the act of March 4, 1971 (P.L.6, No.2), known as the Tax
Reform Code of 1971, are amended and the section is amended by
adding a subsection to read:
Section 212. Tourism Promotion Fund.--* * *
(b) The [tax collected by a booking agent on accommodation
fees under section 210] following taxes shall be deposited into
the fund and disbursed [upon appropriation] for the [purpose of
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promoting tourism in this Commonwealth.] purposes specified
under subsection (b.1):
(1) The tax collected by a booking agent on accommodation
fees under section 210.
(2) The tax collected and remitted by a booking agent under
section 210 on behalf of an operator who is not required to have
a sales, use and hotel occupancy license.
(b.1) Beginning in the 2025-2026 fiscal year and continuing
each fiscal year thereafter, money in the fund is appropriated
on a continuing basis to the department and shall be allocated
annually by the department as follows:
(1) Ten million dollars ($10,000,000) to the department for
the purpose of promoting tourism in this Commonwealth.
(2) The remaining money in the fund shall be allocated by
the department as follows:
(i) Sixty-five percent to the department for the purpose of
promoting tourism in this Commonwealth.
(ii) Ten percent to the Pennsylvania Historical and Museum
Commission for the purpose of museum assistance grants.
(iii) Twenty-five percent to the Pennsylvania Council on the
Arts for the purpose of grants to the arts.
* * *
(c.1) Money from the fund may not be used by the department
under subsection (b.1)(1) and (2)(i) for the promotion or
marketing operations of a tourism entity or for special events
or grants until thirty days after the publication of the
guidelines, rules and regulations under subsection (c) in the
Pennsylvania Bulletin.
(c.2) The following shall apply:
(1) No more than fifty per cent of the funds available to
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the department for disbursement under subsection [(b)] (b.1)(1)
and (2)(i) may be distributed for the purposes of promotion or
marketing operations of a tourism entity or for special events
or grants.
* * *
(3) A single recipient of funding under paragraph (2) may
not be awarded more than fifteen per cent of the total funds
available for disbursement to the department under subsection
[(b)] (b.1)(1) and (2)(i). This paragraph shall not apply to
contracts entered into by the department for Statewide tourism
promotion or marketing.
(c.3) Funds available to the department for disbursement
under subsection [(b)] (b.1)(1) and (2)(i) may not be used for
capital projects or for the design, construction,
rehabilitation, repair, installation or purchase of any
building, structure or sign in this Commonwealth.
* * *
Section 2. This act shall take effect July 1, 2025, or
immediately, whichever is later.
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