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Tourism bed tax hike sought

Change will add $600K

A proposed 2 percentage-point bed tax hike, which would give the Butler County tourism agency a $600,000 boost, appears headed for approval next week.

The county commissioners on Wednesday are set to vote on amending the county bed tax ordinance, which includes a tax hike increasing the rate from 3 percent to 5 percent.

If approved, the increase would take effect in August.

Commissioner Leslie Osche, board chairman, said in an interview the commissioners support the changes following discussion with those offering accommodations.

Osche said the people operating hotels and other types of lodging were fine with the increase as long as their businesses were promoted through marketing.

The proposed changes were subsequently placed on the commissioners’ agenda.

“We were confident with moving forward,” Osche said.

Osche said this past Wednesday during the commissioners meeting that visitors are the ones paying more.

“It’s not really our residents,” he said.

Jack Cohen, president of the Butler County Tourism and Convention Bureau, said at the meeting the amended regulations cover any lodging that has bedding and water service.

Along with cabins, university housing used for any purpose but college students, such as summer camps, would be taxable for the first time.

Commissioner Kevin Boozel pointed out mobile campers won’t be taxed.

The tax hike is projected to net roughly $600,000 annually in additional revenue for the tourism bureau, increasing it from roughly $1.7 million it previously garnered from the tax.

Another $700,000 in the tourism bureau budget is generated from membership dues, co-op advertising and event fundraisers.

Cohen said the state formerly gave counties roughly $40 million for tourism.

“Now, the state gives nothing to counties,” he said.

Cohen said now the state only has $2 million budgeted to promote itself to potential tourists.

He said tourism funding would come solely at the county level.

“We’ll take care of that,” Cohen said.

According to the tourism bureau, the county has more than 2,000 rooms available for rent, but that number is projected to rise with several hotels being built.

Under a law signed by Gov. Tom Wolf in April, the bed tax in Pennsylvania counties can be raised from 3 percent to 5 percent.

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