Founded in 1937, the Pennsylvania Restaurant & Lodging Association promotes, protects, and advances Pennsylvania’s hospitality and tourism industries. PRLA serves as the unified voice for restaurants, hotels, and other hospitality businesses across the Commonwealth—advocating for policies that support growth, sustainability, and economic impact. Its members are vital contributors to Pennsylvania’s economy and vibrant communities. Learn more at PRLA Legislative Priorities.
2024 - 2025 Legislative Priorities
Ensuring Safety and Fairness as it relates to Short-Term Rentals
HR 425 ADOPTED
Due to the leadership of PABBI with assistance from PRLA, the PA House of Representatives adopted House Resolution 425 on July 3,2024. The resolution was introduced by Representative LIndsay Powell and Representative Jennifer O'Mara in early May and was voted out of the Housing & Community Development Committee chaired by Representative P. Michael Sturla. The passage of this resolution will task the Joint State Government Commission to study the growing short-term rental economy in PA and explore how short-term rentals impact the Commonwealth's tourism industry, traditional lodging, and affordable housing. This important piece of policy, which will now trigger the state to take a more comprehensive look at the short-term rental space and will undoubtedly lead to policy recommendations that the General Assembly can consider. Ths study needs to be completed in 180 days.
SHORT-TERM RENTAL STUDY COMPLETED & POSTED
The study of "The Short-Term Rental Industy in Pennsylvania" has been completed by the Joint State Governrment Commission and posted on their website in March 2025. View the complete study.
BACKGROUND
The former Pennsylvania Bed & Breakfast Association (PABBI) and the PA Restaurant and Lodging Association (PRLA), whose members include hoteliers and Destination Marketing Organizations (DMOs) also known as Convention & Visitors Bureaus (CVBs), have been working together to level the playing field with short-term rentals in terms of providing safe and comfortable lodging and fair business operating requirements (licensing, insurance, occupancy limits, etc.). Read the joint Short-Term Rental Position Policy.
Short-term rentals, home sharing, vacation rentals, Airbnb: regardless of what you call the concept, it is clear that the sharing economy has worked its way into virtually every residential area in the country. Short-term rentals are defined as the rental of all or part of a residential dwelling unit for a duration of occupancy of less than 30 days.
The former PABBI organization requested Townships/Boroughs/Cities to develop and implement a short-term rental ordinance that provides protection to neighborhoods and residents as well as levels the playing field with bed and breakfasts and hotels/motels/inns. PABBI had developed a position paper entitled "Requirements for Short-Term Rental Ordinances."
PA Bed & Breakfasts owners should find out if their Township/Borough/City has a short-term rental ordinance. It is imperative that communities take a pro-active approach in regulating short-term rentals to prevent unintended outcomes.
Protect and Increase Statewide Tourism Funding
For Pennsylvania to maximize its potential competing with other states to attract tourists, it must fund tourism efforts at $39 million that does not include legislative earmarks.
For too long, tourism funding has remained stagnant in Pennsylvania at about $4 million. Research suggests that PA's tourism promotion efforts are significantly underfunded, especially when compared to surrounding and similar-sized states. View the 2022 Report by Tourism Economics related to tourism funding in PA.
Statewide Legislation enabling the creation of Tourism Improvement Districts
Given the lack of tourism funding in Pennsylvania, it's essential the industry is allowed to collaborate and grow. A tourism improvement district (TID) is a stable source of funding for efforts to increase tourism to a particular region. Funds raised through a self-assessment on lodging stays are used to market and develop initiatives that benefit businesses in the district.
Senator Devlin Robinson has introduced SB 845 that was referred to the Appopriations Committee on March 20, 2024. This bill would establish enabling legislation allowing each individual county to determine if they want to creat a TID; allow an assessment on a lodging business within a county, and decisions related to those funds would be at the discretion of a TID board made up of members of the assessed community.
PASSED LEGISLATION
Act 109
In 2018, the legislature overwhelmingly passed Act 109, previously known as HB 1511. This monumental legislation closed the online travel company loophole to ensure that online travel agents are remitting tax on the correct, retail rate of the room. The revenue from closing that loophole is to be deposited in a restricted account that is to be used to promote statewide tourism in Pennsylvania.
Alcohol Reform
Act 39, alcohol reform, took effect on Monday, August 8, 2016. The law states Bed & Breakfasts (10 rooms or less) may provide one bottle of wine to its paying guests at check-in while in an overnight status so long as that wine is produced by a licensed limited winery. A Limited Winery is defined as a winery that produces up to 200,000 gallons of alcoholic ciders, wines and wine coolers per year.
This is something the B&B industry had been working on for about 10 years. Due to the tenacity of the former PABBI Board of Directors working with the PA Restaurant & Lodging Association (PRLA), this was a huge win for PABBI.
Airbnb Agreement with the PA Department of Revenue
An agreement between the PA Department of Revenue and Airbnb, authorized Airbnb to collect and remit the PA state 6% occupancy tax for any bookings made through their site effective July 1, 2016. Therefore, do not charge the guest for the 6% state tax on any reservations received from Airbnb. That step will be taken care of by Airbnb. You still need to report the income to the state each month or quarter which ever applies to your business. Airbnb is remitting only the state tax, they are NOT remitting the local hotel occupancy tax.

