As the drawn-out debacle of Pennsylvania’s 2015-16 state budget showed, the Republican-controlled General Assembly is not in the mood to approve new taxes. Yet hope springs eternal in the halls of VisitPittsburgh, the convention and tourist bureau, which is seeking authority from the Legislature and Allegheny County Council to raise the county’s 7 percent hotel tax.
We hope they prevail, based on the intended use for the expected $6 million boost in annual revenues: a sports commission to lure more big-time athletic events, enhancement of community parks for sporting events and increased marketing to boost the convention trade. The money would also establish dedicated funding for the Pittsburgh Film Office, which has too often been at the mercy of budget whimsy, and assist the Visit Monroeville tourism agency.
The strategy for seeking the higher tax rate, however, still seems likely to raise hackles. As floated almost a year ago, VisitPittsburgh wants the state to approve a tax increase of 2 percentage points, but then ask county council for only a 1.25 percentage-point rise, holding the remaining taxing authority in reserve. The bargaining tactic of starting high runs the risk of backfiring with legislators, who feel flushed with victory this year over Gov. Tom Wolf’s tax hike proposals.
VisitPittsburgh has the backing of the Greater Pittsburgh Hotel Association for the tax increase, which they contend would remain among the lowest in comparable markets. Hotel and rental-car taxes, largely invisible to local residents, are politically palatable, but hospitality professionals should be ever mindful of pricing themselves out of the market.
A sports commission to promote the city’s standing in athletic tourism is tailor-made for this sports-centric town. More than 100 American cities have similar organizations, whether inside their tourism bureaus or independent from them, and Pittsburgh is well overdue in seeking the structure to better compete.
First Published: March 28, 2016, 4:00 a.m.
