Council asks how $100M hotel tax projection depends on state action
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Summary
Council members probed whether the administration’s five‑year plan’s $100M hotel‑tax projection is realistic given it requires state enabling legislation; administration said a 2% hotel tax would need Harrisburg authorization and conversations with state lawmakers are underway.
Council members raised questions about the five‑year plan’s reliance on $100 million in projected hotel‑tax revenue. Councilmember Thomas asked how realistic that revenue is given the need for state authorization.
Administration representatives explained that a proposed 2% hotel‑tax increase would require state legislation authorizing the city to levy the extra percentage. "The state would have to say that we were allowed to levy this additional 2%, so they'd have to authorize it," an administration official said. Rob DeBeau said the city has been in conversation with state representatives and has not yet received a definitive no.
Councilmembers asked what happens if Harrisburg does not authorize the change. Administration staff said the city would need to find alternative revenue sources or make tradeoffs in the five‑year plan. "We would have to look for another way to expand those services, which would probably mean painful trade offs," a staffer said.
What happens next: Administration said it will continue outreach to the state delegation and provide written follow‑up on which stakeholders and unions have been engaged.
