Hotel Tax Increases and Philadelphia Cigarette Tax


At this writing, a bill authorizing certain counties to impose or increase their hotel taxes remains pending before the Pennsylvania House for concurrence on Senate amendments.  Authorization of a local option Cigarette Tax of 10¢ per cigarette ($2 per pack) for Philadelphia schools remains in limbo in the same bill. 

The Cigarette Tax is expected to raise $70-90 million per year.  Collection of the local tax would be piggy-backed on the state cigarette tax and would be administered by the Pennsylvania Department of Revenue.  All definitions, rules and regulations for the state tax would apply, except that stamping agents would receive no additional compensation for this tax. 

The House is expected to return within the next few weeks to address the amended bill.


Topics:  Hospitality Industry, Hotels, Occupancy Tax, Pending Legislation, Public Schools

Published In: General Business Updates, Commercial Real Estate Updates, Tax Updates

DISCLAIMER: Because of the generality of this update, the information provided herein may not be applicable in all situations and should not be acted upon without specific legal advice based on particular situations.

© McNees Wallace & Nurick LLC | Attorney Advertising

Don't miss a thing! Build a custom news brief:

Read fresh new writing on compliance, cybersecurity, Dodd-Frank, whistleblowers, social media, hiring & firing, patent reform, the NLRB, Obamacare, the SEC…

…or whatever matters the most to you. Follow authors, firms, and topics on JD Supra.

Create your news brief now - it's free and easy »