Pennsylvania § 17161 - Increase in rate of hotel tax in central county.

§ 17161. Increase in rate of hotel tax in central county.

(a) General rule.--The rate of the tax imposed under former section 1970.2 of the act of July 28, 1953 (P.L.723, No.230), known as the Second Class County Code, shall be increased by 2% to a rate of 7%, subject to adjustment under section 17154(i) (relating to referenda levying additional taxes), for the period provided in subsection (c). Following the end of the period provided in subsection (c), the tax shall be collected at the rate in effect immediately prior to June 18, 1997.

(b) Definitions.--Terms used in this section that are not otherwise defined in this part but are defined in former section 1970.2 of the Second Class County Code shall have the meanings ascribed to them in that section of that act.

(c) Tax rate increase.--The increased tax rate required under this section shall apply to and be collected only on rentals of a room or rooms to accommodate transients that occur during the period from September 1, 1997, through the earliest of:

(1) February 28, 1999, if the auditorium authority has not, in the period between June 18, 1997, and February 28, 1999, issued any bonds that are secured by the increased tax revenues to be collected under this subchapter and are for the purpose of financing the costs of any of the activities described in subsection (d);

(2) the date on which all bonds issued by the auditorium authority that are secured by the increased tax revenues to be collected under this subchapter and are for the purpose of financing construction of the convention center have been retired in full; or

(3) August 31, 2027.

(d) Distribution of revenues.--The incremental additional revenues received from the tax increase under this section shall be distributed as follows:

(1) One-third of the additional tax revenues collected by hotels located within a municipality other than the central city that at the time receives revenues under former section 1970.2(b.1)(2) of the Second Class County Code shall be returned to that municipality and otherwise handled in the same fashion as if the incremental additional revenues returned to the municipality under this paragraph were part of the base revenues disbursed to it under that section.

(2) All other incremental additional revenues shall be deposited by the treasurer of the central county with the treasurer of the auditorium authority who shall deposit the revenue in a special fund to be used solely for:

(i) Project design and property acquisition in connection with construction of a convention center until the cost of the project design and property acquisition have been completely paid or full funding has been committed.

(ii) Following completion of the project design and property acquisition under subparagraph (i), the costs of constructing the convention center.

(e) Approval.--Money may not be disbursed under subsection (d)(2)(i) for project design purposes without the approval of the design commission established under section 17162 (relating to Southwestern Pennsylvania Convention Center Design Commission).

Cross References. Section 17161 is referred to in sections 17154, 17162 of this title.