National Civil War Museum presentation.
Wayne Motts discusses TripAdvisor. A look at the top 24 tourist destinations in Harrisburg.
Wayne Motts, CEO of the National Civil War Museum. Opening statement.
Wayne Motts. People like us on Face Book.
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Mike Pries on the economic impact.
If current funding from the county ends.
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It is clear that this museum is needed, and we ought to embrace this and everything around it.
HB 1877 2007 Sponsored by Ron Buxton, John Payne and Sue Helm.
HB 1877:
AN ACT
Amending the act of August 9, 1955 (P.L.323, No.130), entitled, as amended, "An act relating to counties of the first, third, fourth, fifth, sixth, seventh and eighth classes; amending, revising, consolidating and changing the laws relating thereto; relating to imposition of excise taxes by counties, including authorizing imposition of an excise tax on the rental of motor vehicles by counties of the first class; and providing for regional renaissance initiatives," further providing for authorization of hotel tax.
The General Assembly of the Commonwealth of Pennsylvania hereby enacts as follows: Section 1. Section 1770.5 of the act of August 9, 1955 (P.L.323, No.130), known as The County Code, amended December 22, 2000 (P.L.1019, No.142) and July 5, 2005 (P.L.38, No.12), is amended to read:
Section 1770.5. Authorization of [Three] Five Per Centum Hotel Tax.--(a) The county commissioners of any county of the third class having a population under the 1990 Federal Decennial Census in excess of 237,000 residents, but less than 240,000 residents, may impose a hotel tax not to exceed [three] five per centum of the consideration received by each operator of a hotel within the county from each transaction of renting a room or rooms to transients. The tax shall be collected by the operator from the patron of the room or rooms and paid over to the county as herein provided. (b) The county commissioners may by ordinance impose requirements for keeping of records, the filing of tax returns and the time and manner of collection and payment of tax. The county commissioners may also impose by ordinance penalties and interest for failure to comply with recordkeeping, filing, collection and payment requirements.
(c) The county commissioners of each county shall designate the entity or agency responsible to collect and to enforce the collection of the tax on their behalf. All revenues received from the tax shall be deposited into a special fund, which is to be established by the county's treasurer. The disposition of the revenues from the special fund attributable to the levy of the first two per centum of the tax shall be as follows: (1) twenty per centum of all revenues received per annum shall be distributed by the treasurer to a city of the third class in the county of the third class imposing the tax for the appropriate and reasonable marketing and promotional expenses of promoting tourism in the city of a third class and the costs associated with the renovation, rehabilitation, extension, furnishing, equipping, substantial repair or construction of a tourism-related facility located within the city of the third class, including for payment of the debt service on bonds issued for such projects; (2) ten per centum of all revenues received per annum shall be distributed by the treasurer to the county commissioners who may accept the funds which may be used for tourism and regional promotion purposes to be determined by the county commissioners, or, if the county commissioners elect not to accept the funds, the funds shall be distributed by the treasurer to the TPA for the appropriate and reasonable marketing and promotional expenses of the TPA in promoting tourism in the county of the third class imposing the tax, excluding promotion of a city of the third class receiving revenues under clause (1); and
(3) seventy per centum of all revenue received per annum shall be distributed by the treasurer to qualified authorities located within the county of the third class imposing the tax for payment of the debt service on bonds issued for the construction of the county regional sports facility having a seating capacity of ten thousand to fourteen thousand seats, which is owned, in whole or in part, or leased by the applicable authority, and which is located within the county of the third class imposing the tax. The following are qualified authorities for purposes of this clause: (i) an authority incorporated pursuant to the former act of May 2, 1945 (P.L.382, No.164), known as the "Municipality Authorities Act of 1945"; (ii) an industrial or commercial development authority incorporated pursuant to the act of August 23, 1967 (P.L.251, No.102), known as the "Economic Development Financing Law"; and
(iii) a redevelopment authority incorporated pursuant to the act of May 24, 1945 (P.L.991, No.385), known as the "Urban Redevelopment Law." (c.1) The disposition of the revenues from the special fund attributable to the levy of the third per centum of the tax, if levied, shall be distributed at the discretion of the county commissioners and used solely for tourism and regional promotion purposes. (c.2) The disposition of the revenues from the special fund attributable to the levy of the remaining two per centum of the tax shall be distributed by the treasurer as follows:
(1) fifty per centum shall be distributed to the TPA for the appropriate and reasonable marketing and promotional expenses for promoting tourism in the county imposing the tax; and
(2) fifty per centum shall be distributed as follows:
(i) Seventy-five per centum to an authority incorporated pursuant to the former "Municipality Authorities Act of 1945" located within the county of the third class currently imposing a tax for payment of the debt service on bonds issued for the construction of the county regional sports facility having a seating capacity of ten thousand to fourteen thousand seats, which is owned, in whole or in part, or leased by the applicable authority, and which is located within the county of the third class imposing the tax. Such authority shall use the tax distribution identified in this section for the improvement, support, rehabilitation, revitalization, construction, fit-out and reconstruction of one or more tourism or tourism infrastructure-related facilities, including, but not limited to, the payment of debt service on bonds related thereto.
(ii) Twenty-five per centum shall be distributed to the TPA for the appropriate and reasonable marketing and promotional expenses of promoting tourism in a city of the third class located within the county of the third class imposing the tax, and the same shall be used in accordance with a plan approved by the TPA.
(d) The treasurer of each county electing to impose the tax authorized under this section shall collect the tax from the entity or agency designated by the county commissioners to collect and to enforce the collection of the tax and shall deposit the revenues received from the tax in a special fund established for that purpose.
(e) The tax year for a tax imposed under this section shall run concurrently with the calendar year. (e.1) An audited report on the income and expenditures incurred by a tourist promotion agency receiving any revenues from the tax authorized under this section shall be submitted annually by the tourist promotion agency to the county commissioners. (f) As used in this section, the following words and phrases shall have the meanings given to them in this subsection: "Consideration." Receipts, fees, charges, rentals, leases, cash, credits, property of any kind or nature or other payment received by operators in exchange for or in consideration of the use or occupancy by a transient of a room or rooms in a hotel for any temporary period. "Debt service on bonds." Any cost related to the issuance, refinancing, refunding or payment or any other costs associated with the issuance and maintenance of bonds or notes by an authority or a city of the third class.
"Hotel." A hotel, motel, inn, guest house or other structure which holds itself out by any means, including advertising, license, registration with an innkeepers' group, convention listing association, travel publication or similar association or with a government agency, as being available to provide overnight lodging or use of facility space for consideration to persons seeking temporary accommodation; any place which advertises to the public at large or any segment thereof that it will provide beds, sanitary facilities or other space for a temporary period to members of the public at large; or any place recognized as a hostelry. The term does not include any portion of a facility that is devoted to persons who have an established permanent residence or a college or university student residence hall.
"Occupancy." The use or possession or the right to the use or possession by any person other than a permanent resident of any room in a hotel for any purpose or the right to the use or possession of the furnishings or to the services accompanying the use and possession of the room. "Operator." An individual, partnership, nonprofit or profit-making association or corporation, or other person or group of persons who maintains, operates, manages, owns, has custody of or otherwise possesses the right to rent or lease overnight accommodations in a hotel to the public for consideration.
"Patron." A person who pays the consideration for the occupancy of a room or rooms in a hotel. "Permanent resident." A person who has occupied or has the right to occupancy of a room or rooms in a hotel as a patron or otherwise for a period exceeding thirty consecutive days.
"Room." A space in a hotel set aside for use and occupancy by patrons, or otherwise, for consideration, having at least one bed or other sleeping accommodation in a room or group of rooms.
"Tourist Promotion Agency (TPA)." An organization, agency or corporation designated to be such by the board of commissioners of the county in which the tax is imposed. The TPA shall be duly established, designated and recognized as the county's TPA in accordance with and pursuant to the act of April 28, 1961 (P.L.111, No.50), known as the "Tourist Promotion Law."
"Transaction." The activity involving the obtaining by a transient or patron of the use or occupancy of a hotel room from which consideration is payable to the operator under an express or an implied contract.
"Transient." An individual who obtains accommodation in a hotel by means of registering at the facility for the temporary occupancy of a room for the personal use of the individual by paying a fee to the operator.
Section 2. This act shall take effect in 60 days.
APPROVED--The 18th day of December, A. D. 2007. EDWARD G. RENDELL
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From our archives.
As released by the Office of the Mayor.
Aug. 28, 2014.
MAYOR PAPENFUSE SAYS COMMISSIONERS SHOULD EXERCISE THEIR AUTHORITY AND STOP PAYMENTS TO CIVIL WAR MUSEUM
HARRISBURG – Mayor Eric Papenfuse repeated his call for Dauphin County Commissioners to exercise their authority to suspend payments to the National Civil War Museum for misuse of hotel tax funds, noting Section 12 of the hotel tax ordinance clearly mandates the Commission’s approval of all disbursements.
“This is not a complicated legal question that requires weeks of review. It is fully within the commissioners’ authority to stop the National Civil War Museum’s misuse of hotel tax dollars on salaries and general expenses,” Mayor Papenfuse said. “Section 12 clearly states expenditures must be ‘approved by the Board of County Commissioners.’ They could end this abuse by simply withdrawing their approval.”
The Mayor and Harrisburg City Council members have asked commissioners to suspend payments to the National Civil War Museum, saying the museum is misusing hotel tax revenues, which should be used to promote the entire city and not just one facility.
Hotel tax revenues directed to the Civil War Museum must be used for “appropriate and reasonable marketing and promotional expenses of promoting tourism within the city of the third class (Harrisburg)” according to the last paragraph of Section 9 of the ordinance.
The Mayor also responded to questions about the city’s use of hotel tax revenue it receives directly from commissioners under a separate provision of the ordinance. Money directed to the Civil War Museum and money going directly to the City of Harrisburg have different regulations under the hotel tax ordinance, the Mayor said.
The provision regulating the city’s use of hotel tax revenues it receives directly allows a broader use and states they can be for “renovation, rehabilitation, extension, furnishing, equipping, substantial repair or construction of a tourism-related facility located with the city . . . including payment of the debt service on bonds issued for such projects.”
“The money the city receives directly from commissioners for tourism is less than the annual debt payments on bonds that helped originally construct the National Civil War Museum and other tourism related facilities,” the Mayor said. “I don’t think the public is aware that the city is still paying off debt for this venture.”
“That’s money that we don’t have to pay to fix potholes and to address other city services,” said Council President Wanda Williams.
“The bottom line is the Mayor and the City Council stand united in calling on the Dauphin County Commissioners to stop funding of the Civil War Museum,” she said. “Our voices should not be ignored.”
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From our archives.
Mayor Papenfuse describes how tourism money is funding the National Civil War Museum Tuesday evening at city council chambers.
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Press released by the Office of the Mayor August 27, 2014.
CIVIL WAR MUSEUM MARKETING REPORT SHOWS 66 PERCENT OF HOTEL TAX FUNDS SPENT ON SALARIES
HARRISBURG – Mayor Eric Papenfuse has released a marketing report provided by the National Civil War Museum that shows it spends 66 percent of its funding from hotel tax revenues on salaries, with only 15 percent of the funds going to marketing.
“The museum provided a breakdown of how it spends money from the hotel tax showing most of the money goes for salaries and utilities,” Mayor Papenfuse said. “The museum’s own figures show only about 15 percent going toward marketing.”
Dauphin County commissioners allocate a portion of hotel tax revenues to be used for marketing of the City of Harrisburg. The Hershey Harrisburg Regional Visitors Bureau (HHRVB) distributes and allocates some of the funds, with a large portion going to the National Civil War Museum in an agreement negotiated under the administration of Mayor Stephen Reed.
Tuesday night, the Harrisburg City Council voted unanimously to support Mayor Papenfuse’ s call to suspend hotel tax allocations to the museum, saying the money should be used to market the entire city and not just one facility.
Mayor Papenfuse says the city can no longer afford to subsidize the National Civil War Museum, which pays only $1 per year in rent to the city for a building that could bring in at least $500,000 in annual revenue.
Attached is information that the museum provided on its use of hotel tax funds distributed by the HHRVB.
Harrisburg Mayor Eric Papenfuse appeared before Dauphin county commissioners Wednesday morning with copies of a Tourism Promotion Agreement and First Amendment contracts between the City of Harrisburg and the Hershey Harrisburg Regional Visitors Bureau.
The original contract (Tourism Promotion Agreement) is dated June 26, 2008 and signed by Mary Smith Executive Director of Hershey Harrisburg Regional Visitors Bureau, Randy King (former COS for mayor Steve Reed) Chairman HHRVB, Stephen R. Reed Mayor, James J. McCarthy Controller, and Steven Dade Solicitor.
The First Amendment To Tourism Promotion Agreement is dated October 22, 2009 and signed by the same parties except for city solicitor Steven Dade who was replaced by Philip Harper the City Solicitor in 2009.
This unwise long term agreement.
Every time you pay to park in Harrisburg, you are paying bond debt from the creation of this museum.
Mayor Reed signs another long term contract just before he leaves office.
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As released by the Office of the Mayor:
HARRISBURG - Mayor Eric Papenfuse today asked the Dauphin County Commissioners to freeze money it allocates to the Hershey Harrisburg Regional Visitors Bureau until the City of Harrisburg can revise the agreement with the agency on how to disperse county hotel tax revenue.
“The vast majority of the funds dedicated for promoting tourism in Harrisburg are diverted to subsidize the Civil War Museum,” Mayor Papenfuse told the County Commissioners at their regular monthly meeting on Wednesday. “This is outrageous and it’s time we end what is essentially a failed experiment.”
County Commissioners took under advisement the Mayor’s request and assigned their attorneys to investigate the funding agreement, which provided the National Civil War Museum with almost $300,000 in 2013.
The agreement dates back to the administration of Mayor Steve Reed who extended it until 2023 as he was leaving office.
“This was a secret deal done to keep subsequent mayors from being able to change the agreement with HHRVB,” Mayor Papenfuse said. “The citizens of Harrisburg can no longer afford to pay for a museum that is not generating revenue and that is not even in the city of Harrisburg.
“We are asking County Commissioners to help us get out of a very bad agreement.”
The funding agreement passed in June 2008 requires HHRVB to provide $500,000 to the Civil War Museum if hotel tax revenues due to the city exceed $960,000. The agreement also calls for yearly increases in allocations to the museum.
Dauphin County provides from its discretionary 1 percent allocation from the hotel tax additional annual funding to the museum, which Papenfuse said “generates no revenue and has become a drain on the city.” Dauphin County provided at least $50,000 to the Civil War Museum this year.
“The original vision was the museum would become self-sustaining and pay rent to the city of Harrisburg,” Mayor Papenfuse said. “That hasn’t happened.”
The Mayor said the museum does not attract enough visitors nor does it promote tourism into the city.
“Considering the city is in financial recovery, I don’t think this is the best use of our tax dollars,” Mayor Papenfuse told the commissioners. “We could use the money we should get by renting this facility to fix potholes, support public safety and improve the quality of life for the people of Harrisburg.
Papenfuse released the National Civil War Museum’s financial statement showing the facility’s fair market rental value at $633,000 per year. The museum pays $1 per year to the city for rent.
“I don’t think the public supports this museum,” the Mayor said. “Every time we pay to park, we are basically paying to subsidize the building of this museum that is not generating any returns for the city of Harrisburg.”
The Mayor said he has tried to get museum officials to reconsider the agreement in light of the city’s fiscal needs, but “they are not interested in engaging,” he said. “They have a sense of entitlement to the money.
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The numbers:
5% Dauphin County Hotel Tax received by the Office of the Treasurer.
2013 $9,725,113
2012 $9,074,074
2011 $8,900,895
2010 $8,421,423
2009 $8,214,915
Photo/Natalie Cake