Pennsylvania 2025-2026 Regular Session

Pennsylvania House Bill HB1852

Introduced
9/9/25  

Caption

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

Impact

The changes introduced by HB1852 aim to ensure that substantial portions of the funds are dedicated to tourism promotion. Starting from the 2025-2026 fiscal year, the allocation includes $10 million specifically for tourism promotion, with additional proportions directed toward the Pennsylvania Historical and Museum Commission and the Pennsylvania Council on the Arts. This legislative development is expected to bolster state-supported tourism efforts and enhance the funding available for cultural and artistic initiatives that contribute to Pennsylvania's tourism landscape.

Summary

House Bill 1852 amends the Tax Reform Code of 1971 concerning the hotel occupancy tax, specifically addressing the allocation of funds collected through this tax for promoting tourism in Pennsylvania. The bill establishes the Tourism Promotion Fund, into which taxes collected by booking agents on accommodation fees will be deposited. This fund aims to allocate resources efficiently to stimulate tourism across the state, thus recognizing the vital role that the tourism sector plays in Pennsylvania's economy. The act is set to take effect on July 1, 2025, or immediately after its passage, signaling a forward-looking approach to tourism funding.

Sentiment

Overall, the sentiment surrounding HB1852 appears largely positive, viewed as a constructive step toward enhancing Pennsylvania's tourism infrastructure. Supporters recognize the potential economic benefits associated with increased funding for tourism initiatives, suggesting that well-resourced promotional efforts could lead to heightened visitor numbers and associated economic activity. However, the pressure to allocate funds judiciously raises concerns about the sustainability of the tourism promotion efforts in light of reliance on occupancy taxes, which might fluctuate based on various economic factors.

Contention

While the bill is generally supported for promoting tourism, there are concerns about the distribution mechanism of the funds. Specific limitations are placed on how much a single recipient can receive, which some stakeholders argue could dilute the effectiveness of funding for significant tourism projects. Moreover, the restriction against using funds for capital projects or related structures might lead to criticism from local entities eager for tangible improvements that directly enhance visitor experiences.

Companion Bills

No companion bills found.

Previously Filed As

PA HB1389

In sales and use tax, further providing for Tourism Promotion Fund.

PA HB1391

Providing for the tourism marketing and promotion tax credit.

PA HB1307

In taxation for public transportation, further providing for local financial support; and, in fees, further providing for fee for local use.

PA SB654

In sales and use tax, further providing for

PA HB2315

In tax credit and tax benefit administration, further providing for definitions; and providing for promotion of renewable opportunities, supporting people, employment and resilience (PROSPER) tax credit.

PA HB902

In transportation network companies, further providing for impoundment of vehicles, repealing provisions relating to assessment and providing for payment of assessment; in taxation for public transportation, further providing for local financial support; in fees, further providing for fee for local use; and imposing duties on the Department of Revenue and the Department of Transportation.

PA SB269

In personal income tax, further providing for imposition of

PA HB1292

In oil and gas wells, further providing for definitions and for Oil and Gas Lease Fund and providing for Public Natural Resources Trust Fund.

PA HB2636

In registration of vehicles, providing for arts registration plate; in fees, further providing for payments to special funds; and establishing the Arts Promotion Fund.

PA HB1219

In personal income tax, further providing for classes of income and for special tax provisions for poverty and providing for alternative special tax provisions for poverty; in corporate net income tax, further providing for definitions, for imposition of tax, for reports and payment of tax, for consolidated reports and for manufacturing innovation and reinvestment deduction; in realty transfer tax, further providing for transfer of tax; in tax credit and tax benefit administration, further providing for definitions; in entertainment production tax credit, further providing for definitions, for credit for qualified film production expenses, for carryover, carryback and assignment of credit and for limitations; in Pennsylvania Economic Development for a Growing Economy (PA EDGE) tax credits, providing for biotechnology; in neighborhood assistance tax credit, further providing for tax credit and for grant of tax credit; providing for expanded neighborhood improvement zones; in Pennsylvania Child and Dependent Care Enhancement Tax Credit Program, further providing for credit for child and dependent care employment-related expenses; providing for Public Transportation Trust Fund; and, in general provisions, further providing for underpayment of estimated tax, for method of filing and for allocation of tax credits.

Similar Bills

No similar bills found.