City Council to Consider Hotel Tax Increase

Philadelphia City Council passed a bill out of committee last month which would increase the City’s hotel tax 1.2 percentage points, from 14 percent to 15.2 percent. The proposed tax increase is estimated to raise an additional $6.3 million next year and is expected to be considered by Council shortly.

Nearly half of the money raised from the tax increase would fund additional costs for the Pennsylvania Convention Center expansion. This vital project is expected to play a major role in stimulating the regional economy, allowing the Convention Center to host more meetings and accommodate larger conventions and tradeshows. The Philadelphia Convention & Visitors Bureau (PCVB) has already booked more than $1.2 billion in future business into the expanded convention center, which is expected to open in 2011.

The remaining revenue from the hotel tax increase would be split between The Greater Philadelphia Tourism Marketing Corporation (GPTMC) and PCVB.

For hotel guests, this tax increase would add about an extra $1.40 per night to their bill.