Commissioners OK increase in bed tax
Lodgers renting rooms in Butler County will pay a little more next month.
The county commissioners Wednesday approved a bed tax hike from 3 percent to 5 percent.
Along with hotels and motels, the amended tax regulations affect cabins and university housing used for any purpose but college students residing on campus.
The increase is projected to give county tourism $600,000 more in revenue annually.
County Commissioner Leslie Osche, board chairman, said hotel operators support the change because the additional money would be spent on marketing the county to potential tourists.
“They want to see an increase in marketing to attract tourism to keep their beds filled,” Osche said.
County Treasurer Diane Marburger said her office will conduct training on the amended guidelines Tuesday for the affected business operators.
The higher tax will be applied beginning Aug. 1. Marburger, whose office collects the bed tax, said the additional revenue will start coming in September.
“We have everything lined up,” she said.
Commissioner Kim Geyer pointed out the revenue cannot be allotted for anything other than tourism under state regulations.
“We’re not able to use the funds for other purposes,” Geyer said.
The Butler County Tourism and Convention Bureau currently receives roughly $1.7 million from the bed tax. Another $700,000 is generated from membership dues, co-op advertising and event fundraisers.
Through a law signed by Gov. Tom Wolf in April, the state paved the way for counties to raise the bed tax due to the lack of funding to support them.
Pennsylvania formerly had a $40 million tourism budget, which has dwindled to $2 million.
“The counties are receiving nothing to generate tourism,” said county Commissioner Kevin Boozel.
The regulations include late payment fees and penalties for nonpayment by hotel operators.
Violators face a fine of not more than $75 for the first offense, $150 for the second offense, $250 for the third offense and $300 for the fourth and each subsequent offense.
According to the tourism bureau, there are more than 2,000 rooms for rent in the county. That number is expected to rise with several hotels being constructed.
