PABBI is a non-profit 501 c 6 independent trade association governed by a Board of Directors. A key part of our mission statement is ...building strong relationships with key industry leaders; and lobbying for state laws and codes that fairly deal with the needs of innkeepers and guests.
Write your State Senator and Representative
With everyone’s support, our goal is to have every Legislator receive a letter the week of May 5 which is National Tourism Week.
In addition to sending a written letter, please schedule a visit with your Representative and Senator in their home districts. To assist with your visit, talking points are below. An in-person visit is the most effective for achieving results.
PABBI is tracking the following legislative bills that impact the Bed & Breakfast Industry.
PABBI supports the passage of this bill that would ensure a level playing field between short-term rental hosts and professional bed and breakfast owners. This bill will aid in the collection of County Hotel taxes and assist in promoting local and regional tourism assets. It will also provide information to the local municipal authorities to ensure compliance with local zoning ordinances.
The bill is awaiting consideration before the House Tourism & Recreational Development Committee. Identical legislation passed the House in 2018 by a vote of 177-14. It did not move in the Senate.
Short-Term Rental Toolkit
A major change in our industry is the growth of short-term rental websites, most notably Airbnb, HomeAway and others. In just a few short years these sites have emerged as an influential and ingrained part of the short-term lodging industry. PABBI believes there are some business aspects to these short-term rental websites that present a concern and require ongoing advocacy.
Short-term rental websites like Airbnb are billion dollar companies. We need everyone’s help to support our efforts in order to be successful in leveling the playing field.
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.
Act 39, alcohol reform, took effect on Monday, August 8, 2016. The law states Bed & Breakfasts 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 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.