HARRISBURG, PA (CBS) — The head of the Greater Philadelphia Hotel Association says a statewide hotel tax — on top of hotel taxes already being levied — would be “devastating” to the region’s hospitality industry.
The tax is part of the latest proposal to fully fund the state budget that took effect almost three months ago, and the state House could vote on it Wednesday.
The governor and Senate are insisting that recurring revenues be included in any plan to close the budget gap while House members have balked at raising taxes. But now they’ve apparently found a tax they may agree on: a 5 percent statewide hotel tax.
Steve Miskin the spokesman for House Republican majority leaders said, “It’s something that gets a number of out-of-staters, so that you’re not taxing Pennsylvania residents as much.”
But Ed Grose, executive director of the Greater Philadelphia Hotel Association, says state residents will pay in other ways.
“I think it’s really easy to tax non-residents when they stay in our hotels,” he said. “However the jobs that will be impacted are Pennsylvania jobs.”
Grose says the 5 percent state tax would push Philadelphia’s hotel tax above 21 percent.