The Tax Everyone Likes

It isn't too often elected officials can celebrate raising taxes. But legislation signed by Gov. Ed Rendell will allow Philadelphia to raise the hotel occupancy tax by 1.5%. HB 2167 seeks to leverage local resources and expand tourism marketing efforts, bringing additional visitors to the region.

Funds collected would be allocated for increased tourism promotion and for the expansion of the Pennsylvania Convention Center.

The new legislation will not take into effect immediately. City Council must first craft and pass legislation in the upcoming session.

It is, however, a rare charmer among taxes; after all, it falls almost exclusively on people who don’t live or vote in Philadelphia.

“State and City governments are united with Philadelphia hoteliers with the vision and the goal of having more people visit this great city and explore the greater region,” Rendell said as he signed HB 2167 into law.

Several elected officials were on hand to support the new measure. On behalf of the City, Mayor Nutter and Councilwoman Marian Tasco voiced their support of the expansion of the Convention Center, the increase of the hotel occupancy tax and ability to bring more tourist and conventions to the City of Philadelphia.

“We recently hosted the National League of Cities Women In Municipal Government Summer Conference and the National Conference of Governor’s here,” said Tasco. “By expanding our tourism marketing efforts, we will be able to bring more conferences to the City as well as tourists, which means more revenue and more jobs.”

State Rep. Dwight Evans also spoke on behalf of the State Legislature and was joined by several Representatives including Jewell Williams, Babette Josephs, Harold James and Tony Payton.

“We strongly believe marketing works. In the 10 years funding has been available for marketing, the number of visitors has increased by nearly 5 million,” Rendell said. “As competition for tourists and convention business becomes more aggressive, we cannot afford to have Philadelphia lag behind Baltimore, Washington, D.C. and Boston, all of which spend more on marketing.”