Hotel tax proposal may see October vote

By Karen Kane, Post-Gazette Staff Writer
Copyright 2001 P.G. Publishing Co.
Article date: September 23, 2001
 

Legislation authorizing Butler County to begin levying a bed tax to boost tourism will be advertised by county commissioners Oct. 17.

Solicitor Julie Graham last week presented to the board a draft version of the ordinance authorizing the 3 percent levy on all hotel and motel rooms in the county. The tax would take effect Jan. 1, if approved. The Oct. 17 meeting will be held at the county government center in Downtown Butler. Graham said last week the advertisement will indicate the commissioners' vote will take place on Oct. 17, but the board could wait until later, she said. By law, the last date for enactment would be Nov. 27.

The state Legislature passed a law last year allowing all counties to tax hotel and motel beds. The money must be used to boost tourism.

Though the board had been generally in favor of the concept of a bed tax, commission Chairman James Kennedy voted earlier this month against proceeding with the drafting of an ordinance because he is concerned is about who will control the money.

By law, any revenue from the bed tax must go to the county's designated tourist promotion agency. The Butler County Chamber of Commerce and Tourism has held the post since 1997.

Kennedy said he's not certain the agency is "right" for the job. He said his confidence in the group was shaken when it missed a deadline last year to apply for state funding from the Pennsylvania Office of Tourism, Film and Economic Development, part of the state Department of Community and Economic Development.

Graham said the county could change its promotion agency whenever commissioners wish and that the agency is a separate issue from the bed tax.

Though the county hasn't done any calculations on its own, the chamber predicted the hotel tax will generate at least $400,000 annually.

The business plan the chamber submitted to the county as a proposal for enacting the tax suggested hiring a staff that would include a full-time tourism director, a brochure delivery person and a fiscal director.

Other spending would be for brochures, an enhanced Web site, a toll-free telephone number, promotional displays and advertising.

As for broader pursuits, the chamber suggested developing Pullman Park in Butler into a minor league ball field; renovating Penn Theater in Butler; enhancing signs throughout the county; building an ice arena or multipurpose building; establishing a visitors' center; and creating a fund that could cover grants to nonprofit groups and municipalities staging events.
 

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