Montgomery County eyes increase on hotel tax
Visitors to Montgomery County could see an extra few dollars tacked onto their hotel bill, thanks to a proposition put forward by the Valley Forge Tourism and Convention Board.
The board has asked the Montgomery County Board of Commissioners to consider raising the hotel tax from 2 percent to 4 percent. The proceeds would go to benefit the board and help expand the marketing of Montgomery County as a tourist destination.
“We can therefore boost resources for tourism without losing our competitive advantage,” said Mike Bowman, president and CEO of the tourism board. “We can also continue the upward momentum we’ve been on for the past two years. Our team has successfully marketed the visit from Pope Francis — remember Pope Francis stayed here, in Montgomery County — and the Democratic National Convention.”
The new 4 percent tax rate would place it in a range near or below other counties in the area, according to representatives from the board. According to the presentation, Philadelphia has an 8.5 percent tax on hotel rooms. Bucks and Chester counties each have a 3 percent tax but are both proposing to raise it to 5 percent.
The tax was supported by hotel owners, Bowman said, adding that there was no negative feedback at all when the increase was presented to hoteliers.
“We have communicated clearly and directly that this proposed pass-through tax is not paid by the hotels or the county residents,” he explained.
Bowman stated that he was so certain the tax increase would provide an economic benefit to the county that if, in two years, that benefit was not realized, he would authorize a return to the 2 percent rate.
The proposal comes as a result of Pennsylvania’s Act 18, passed this year, which allows the county to raise the hotel tax up to 5 percent.
“Why not 5 percent? Why do you want to leave money on the table?” Commis- sioner Josh Shapiro asked the representatives from the board.
“I’m not a very conservative person but I would like to go to four, and if we really drive those great results that I know we’re going to drive, come back and we can always go to five,” Bowman responded.
The tax would apply to hotel rooms rented in the county’s 74 hotels. According to the presentation, the hotel room rate average in the county is $119 per night. For a room of that rate, the tax would go from its current $2.38 to $4.76 per night.
While Democrat Shapiro expressed his support for the increase, as well as the “remarkable job” that the Valley Forge board has been doing to brand the county, Republican Commissioner Joe Gale said that he would oppose the increase.
“You often hear the term ‘the forgotten taxpayer’ and in this case the forgotten taxpayer is also the tourist or visitor coming to Montgomery County,” Gale said. “I think the most majority of people that stay in hotels, leave saying I paid enough in fees and taxes.”
The tax hike, which Commissioners’ Chairwoman Val Arkoosh said is planned for a vote at the Dec. 15 meeting, would go toward funding grant bids and help the board build a larger reserve fund, in addition to helping the board create ambitious marketing programs to draw visitors.
“We’ve expanded our portfolio of brands, marketing Montgomery County’s appeal as a destination for history, shopping, sports competitions, golf, dining, meetings and I know the commissioners love this: weddings,” Bowman said. “Our next brand launches will be arts and culture. We have a lot to market with arts and culture in this county.”