House advances bill to clarify hotel tax with online travel companies

The Pennsylvania House of Representatives recently approved House Bill 1511, legislation authored by Rep. Marguerite Quinn (R-Bucks) that aims to update and clarify the collection of the hotel occupancy tax from online travel companies.

“When a consumer books a room through an online travel company, he or she naturally would believe that hotel occupancy tax would be paid on the room rate he or she is paying, but that may not always be the case,” Quinn said. “Sometimes the hotel tax is levied, collected and remitted on the agreed-to wholesale price, rather than the actual price paid. That not only shortchanges our local tourism agencies but also confuses the consumer.”

House Bill 1511 would apply the state sales and local hotel occupancy tax to the full price the consumer pays at the point of sale for booking the hotel room, including any additional fees or markups that an online travel company charges for booking the room,

The legislation would also update terms regarding online travel companies in the Pennsylvania Tax Code and create a Tourism Promotion Fund within the Treasury Department. Tax collected by a booking agent on accommodation fees would be deposited into the fund and disbursed upon appropriation to promote tourism across Pennsylvania. This would also apply to any applicable county hotel tax.

Travel-related organizations including as the Pennsylvania Restaurant and Lodging Association, Visit Pittsburgh, the Greater Philadelphia Hotel Association, Visit Philadelphia, the Philadelphia Convention and Visitors Bureau, and the Pocono Mountains Vacation Bureau have expressed support for the legislation.

The bill was amended by the Senate earlier this week and now heads to the governor’s desk.