POSITION:
The Pennsylvania Tourism & Lodging Assciation supports the elimination of gross receipts amusement taxes levied by local school districts and municipalities.
CURRENT BILLS:
On June 30, Senator Bob Regola (R-Westmoreland) introduced legislation, Senate Bill 1012, that would prohibit the imposition of amusement taxes on amusement parks, effective January 1, 2008. The bill has been referred to the Senate Finance Committee.
SUMMARY:
Amusement parks and other tourist attractions, which pay amusement taxes, are the engine that drives the tourism industry in Pennsylvania. These businesses are the primary draw for a key market--the leisure and family traveler. This group of travelers has tremendous economic potential for the tourism industry and the state because they tend to take longer trips, participate in more activities while traveling, and stay in lodging facilities. Other tourism industry segments such as hotels, motels, restaurants, shopping outlets directly and indirectly benefit from attendance at tourist attractions
This additional tax burden placed on amusement parks and other tourist atrtractions makes it difficult for them to remain competitive with other Pennsylvania attractions as well as attractions in nearby states that don't pay the tax or pay a lower rate. Amusement taxes are levied with no services in return, and are based on gross sales tax rather than net. They also reduce working capital that could be used for expansion and/or upgrades at these facilities.
DISCUSSION:
In rercent years, the PA General Assembly has approved legislation eliminating the imposition of amusment taxes on ski areas and bowling allies, and reducing the amount of amusement taxes levied on motorsports racetracks.
The PA Amusement Parks Association supports this positioon.
Updated 9.24.07
