In December 2005, the State House of Representatives passed legislation, Senate Bill 854, which would raise the state's personal income tax and extend the sales tax to more items to provide property tax cuts. The state Senate passed a different plan that would give school districts the option of raising local income taxes to allow property tax cuts. Both plans would also use slots tax revenue to cut property taxes further.
Under SB 854, the state sales tax would have expanded on the 12 items or services provided by various segments of the tourism industry: airline food & beverage, advertising services, lodging services (trailer parks and camps), management consulting services, commercial sports admission, amusement devices, memberships, other admissions, other recreation activities (spa services), entertainers, vending machines, and hotel - permanent resident.
The changes in the sales tax law contained in Senate Bill 854 would have been very harmful to the tourism industry. A sales tax on these services would be an additional cost of doing business in Pennsylvania that companies would either attempt to pass on to their customers, or if unsuccessful, would reduce their economic activity.
Shortly after the House vote, the PTLA Board of Directors took a position in opposition to SB 854.
After Senate Bill 854 passed the House, it was the subject of hearings before the Senate's Special Session Committee on Legislation. PTLA convinced the Committee staff to invite representatives from the tourism industry. On January 18, 2006, two PTLA Board members, Gregg Confer, General Manager, Elk Mountain Ski Resort and Andy Quinn, Director of Community Relations, Kennywood Entertainment Co., testified in opposition to the bill and discussed the serious problems that would be caused by the enactment of Senate Bill 854.
In the following months, PTLA worked with other associations and lobbyists in opposition to SB 854. A statewide grassroots campaign was launched and association members were asked to contact their lawmakers and voice their opposition to the bill.
Due to strong opposition to Senate Bill 854, the bill received no further action and lawmakers decided to approve the property tax reform plan originally adopted by the Senate.
