HB 1852 — 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
 1   Amending the act of March 4, 1971 (P.L.6, No.2), entitled "An
 2      act relating to tax reform and State taxation by codifying
 3      and enumerating certain subjects of taxation and imposing
 4      taxes thereon; providing procedures for the payment,
 5      collection, administration and enforcement thereof; providing
 6      for tax credits in certain cases; conferring powers and
 7      imposing duties upon the Department of Revenue, certain
 8      employers, fiduciaries, individuals, persons, corporations
 9      and other entities; prescribing crimes, offenses and
10      penalties," in hotel occupancy tax, further providing for
11      Tourism Promotion Fund.
12      The General Assembly of the Commonwealth of Pennsylvania
13   hereby enacts as follows:
14      Section 1.    Section 212(b), (c.1), (c.2)(1) and (3) and (c.3)
15   of the act of March 4, 1971 (P.L.6, No.2), known as the Tax
16   Reform Code of 1971, are amended and the section is amended by
17   adding a subsection to read:
18      Section 212.    Tourism Promotion Fund.--* * *
19      (b)   The [tax collected by a booking agent on accommodation
20   fees under section 210] following taxes shall be deposited into
21   the fund and disbursed [upon appropriation] for the [purpose of
 1   promoting tourism in this Commonwealth.] purposes specified
 2   under subsection (b.1):
 3      (1)    The tax collected by a booking agent on accommodation
 4   fees under section 210.
 5      (2)    The tax collected and remitted by a booking agent under
 6   section 210 on behalf of an operator who is not required to have
 7   a sales, use and hotel occupancy license.
 8      (b.1)   Beginning in the 2025-2026 fiscal year and continuing
 9   each fiscal year thereafter, money in the fund is appropriated
10   on a continuing basis to the department and shall be allocated
11   annually by the department as follows:
12      (1)    Ten million dollars ($10,000,000) to the department for
13   the purpose of promoting tourism in this Commonwealth.
14      (2)    The remaining money in the fund shall be allocated by
15   the department as follows:
16      (i)    Sixty-five percent to the department for the purpose of
17   promoting tourism in this Commonwealth.
18      (ii)    Ten percent to the Pennsylvania Historical and Museum
19   Commission for the purpose of museum assistance grants.
20      (iii)   Twenty-five percent to the Pennsylvania Council on the
21   Arts for the purpose of grants to the arts.
22      * * *
23      (c.1)   Money from the fund may not be used by the department
24   under subsection (b.1)(1) and (2)(i) for the promotion or
25   marketing operations of a tourism entity or for special events
26   or grants until thirty days after the publication of the
27   guidelines, rules and regulations under subsection (c) in the
28   Pennsylvania Bulletin.
29      (c.2)   The following shall apply:
30      (1)    No more than fifty per cent of the funds available to

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 1   the department for disbursement under subsection [(b)] (b.1)(1)
 2   and (2)(i) may be distributed for the purposes of promotion or
 3   marketing operations of a tourism entity or for special events
 4   or grants.
 5      * * *
 6      (3)   A single recipient of funding under paragraph (2) may
 7   not be awarded more than fifteen per cent of the total funds
 8   available for disbursement to the department under subsection
 9   [(b)] (b.1)(1) and (2)(i). This paragraph shall not apply to
10   contracts entered into by the department for Statewide tourism
11   promotion or marketing.
12      (c.3)     Funds available to the department for disbursement
13   under subsection [(b)] (b.1)(1) and (2)(i) may not be used for
14   capital projects or for the design, construction,
15   rehabilitation, repair, installation or purchase of any
16   building, structure or sign in this Commonwealth.
17      * * *
18      Section 2.    This act shall take effect July 1, 2025, or
19   immediately, whichever is later.




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