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. 1167
THE GENERAL ASSEMBLY OF PENNSYLVANIA
SENATE BILL
No. 994
Session of
2025
INTRODUCED BY COMITTA, HAYWOOD, FONTANA, SCHWANK, SAVAL, COSTA,
MASTRIANO, KANE AND STREET, SEPTEMBER 17, 2025
REFERRED TO FINANCE, SEPTEMBER 17, 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
promoting tourism in this Commonwealth.] for the purposes
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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 each fiscal
year thereafter, money in the fund is appropriated on a
continuing basis to the department for the purposes 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 per cent to the department for the purpose of
promoting tourism in this Commonwealth.
(ii) Ten per cent shall be used by the Pennsylvania
Historical and Museum Commission for museum assistance grants.
(iii) Twenty-five per cent shall be used by the Pennsylvania
Council on the Arts for 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
the department for disbursement under subsection [(b)] (b.1)(1)
and (2)(i) may be distributed for the purposes of promotion or
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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 in 90 days.
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