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10/18/2018 |
Press Release |
Bill to ensure tax fairness passes Pa. legislature |
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Bill to ensure tax fairness passes Pa. legislature
Legislation a top priority for Pennsylvania hotels and tourism industry
Harrisburg, Pa. (October 18, 2018)—The Pennsylvania Restaurant & Lodging Association (PRLA) today applauds the Pennsylvania legislature for passing House Bill 1511, a top priority for the state’s hotels and other lodging properties.
House Bill 1511, sponsored by Rep. Marguerite Quinn (R-Bucks), closes the online travel company loophole and ensures fairness in hotel tax remittance. It passed both chambers with overwhelming bipartisan majorities and is now before Gov. Tom Wolf for his signature.
“This legislation levels the playing field between our in-state hotels, who employ hundreds of thousands of Pennsylvanians, and out-of-state online travel companies who have been remitting lower tax amounts for years,” said Jim Gratton, chairman of the PRLA board of directors.
House Bill 1511 requires online travel companies to remit hotel occupancy tax based on the final price paid by consumers, rather than the lower wholesale rate negotiated by the online travel companies.
“We thank Rep. Marguerite Quinn for her leadership and support on this important tax fairness issue,” said John Longstreet, president & CEO of PRLA. “This has been a huge priority for Pennsylvania hotels, and she has fought for us every step of the way.”
As part of this legislation, the funds that will result from closing the loophole will be dedicated to statewide tourism promotion.
“Tourism promotion is a proven revenue generator,” Longstreet said. “As our recent study demonstrated, every dollar invested in tourism marketing returns $3.43 in tax revenue, making it a win-win for the state and for all Pennsylvania businesses in the tourism industry.”
The bill also ensures that hotel occupancy tax is assessed on the retail price of hotel rooms at both the state and county level, further ensuring fairness in collection and remittance.
“On behalf of our industry, we also thank Sen. Mario Scavello and the entire leadership team in both the House and the Senate,” Longstreet said. “This was truly a bipartisan effort in both houses of the legislature, and we look forward to Gov. Wolf signing this important piece of legislation into law.” About the Pennsylvania Restaurant & Lodging Association
Founded in 1937, the Pennsylvania Restaurant & Lodging Association strives to promote, protect, and improve the hospitality and tourism industries in the Commonwealth of Pennsylvania. PRLA conveys the unified voice of these industries to the Commonwealth’s citizenry and elected officials. PRLA supports over 25,000 restaurants, 1,500 hotels, and 100 travel and tourism partners. ### Contact: Stephanie Otterson
Director of Communications
(717) 963-8369
[email protected]
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