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Hotel Tax Increase On the Table Again

PHILADELPHIA-Philadelphia's hospitality industry supports a 1% hike in the hotel tax, provided the increase supports efforts to encourage tourism and conventions.

By Paul Bubny | Updated on May 08, 2008

PHILADELPHIA-The Nutter administration is reportedly weighing a 1% increase in the city’s hotel tax, a move that the hospitality industry discussed two years ago but tabled. Published reports say a pitch to increase the room tax, currently at 14%, was discussed in closed-door budget talks by Mayor Michael Nutter and the City Council on Wednesday. Any increase would have to be approved first by the council and then by the state Legislature, where enabling legislation was introduced in January.

The Greater Philadelphia Hotel Association conditionally supports an increase, Ed Grose, the association’s executive director, tells GlobeSt.com. However, he says, local published reports that the association went before City Council on Tuesday were erroneous. The pitch discussed by Nutter and the council came from the Greater Philadelphia Tourism Marketing Corp. and the Philadelphia Convention & Visitors Bureau, both of which would stand to gain from a tax increase.

Grose says the GPHA supports House Bill No. 2167, “which if passed, will increase the Philadelphia room and occupancy tax by 1%. The revenue from the tax increase will be divided evenly between the PCVB and the GPTMC. The PCVB portion will be used to market the soon to be expanded Pennsylvania Convention Center and the GPTMC will brand the Greater Philadelphia region with their portion. The revenue will provide dedicated funding sources to both of our marketing agencies.”

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