(a) The county in which the convention center is located is hereby authorized to impose an excise tax on the consideration received by each operator of a hotel within the market area from each transaction of renting a room or rooms to accommodate transients. The tax shall be collected by the operator from the patron of the room and paid over to the county pursuant to subsection (e) and shall be known as the Hotel Room Rental Tax.

(b) The rate of tax imposed under this section by the county in which the convention center is located shall not exceed five per centum.

(c) Eighty per centum of revenues to be received from taxes imposed pursuant to this section shall be annually deposited in the special fund required under subsection (d) for the use of the authority for convention center purposes. Twenty per centum of the revenues to be received from taxes imposed pursuant to this section shall be deposited within thirty days of collection in the tourist promotion agency fund required under subsection (d) until disbursed as provided below.

(d) The treasurer of each county electing to impose the tax authorized under this section is hereby directed to collect the tax and:

Interest on moneys deposited in the funds shall accrue proportionately to the respective funds as provided in this section. The treasurer is hereby authorized to establish rules and regulations concerning the collection of the tax, which collection shall occur not more often than monthly nor less often than quarterly.

(e) Expenditures from the fund established pursuant to subsection (d) for the authority shall be used by the authority for the following purposes:

(f) If and to the extent that the authority pledges its share of the proceeds of the tax authorized by this section as security for the payment of bonds issued by the authority for convention center purposes, the Commonwealth does hereby pledge to and agree with any person, firm or corporation subscribing to or acquiring bonds to be issued by the authority for convention center purposes that the Commonwealth itself will not, nor will it authorize a county to, reduce the rate of tax imposed for convention center purposes until all bonds so secured by the pledge of the authority, together with interest, are fully met and discharged.

(g) Provided that no event of default has occurred and is continuing with respect to any bonds, notes or other indebtedness of an authority incurred to finance the construction of a convention center, revenues received from the tax deposited to the tourist promotion agency fund required under subsection (d) shall be disbursed by each county to the tourist promotion agency within ten days of receipt thereof, provided that the county shall have no obligation to invest any funds deposited to the tourist promotion agency fund.

(h) Each tax year for any tax imposed hereunder shall run concurrently with the county's fiscal year.

(h.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.

(i) The tax levied under this section shall expire when all bonds issued by a county under this subdivision have been fully met and discharged.

(j) As used in this section, the following words and phrases shall have the meanings given to them in this subsection:

“Consideration” shall mean 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 a temporary period.

“Convention center” shall mean any land, improvement, structure, building, or part thereof, or property interest therein, whether owned by or leased by or to or otherwise acquired by an existing authority, appropriate for any of the following: large public assemblies, the holding of conventions, conferences, trade exhibitions and other business, social, cultural, scientific and public interest events, and all facilities, furniture, fixtures and equipment necessary or incident thereto, including meeting rooms, dining rooms, kitchens, ballrooms, reception areas, registration and prefunction areas, truck loading areas, including access thereto, accessways, common areas, lobbies, offices and areas appurtenant to any of the preceding, together referred to as the main convention area, and also including other buildings, structures or facilities for use in conjunction with the foregoing, including, but not limited to, provision for off-street parking, retail areas and other improvements related to the center owned by or leased by or to an existing authority for the purpose of producing revenues to assist in defraying the costs or expenses of the convention center.

“Hotel” shall mean a hotel, motel, inn, guesthouse or other building located within the market area which holds itself out by any means, including advertising, license, registration with an innkeeper's 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. The term includes a place which advertises to the public at large or a segment of the public that it will provide beds, sanitary facilities or other space for a temporary period to members of the public at large. The term also includes a place recognized as a hostelry, provided that portions of a facility which are devoted to persons who have established permanent residence shall not be included in this definition. The term does not include a bed and breakfast homestead or inn as defined in the act of May 23, 1945 (P.L. 926, No. 369),¹ referred to as the Public Eating and Drinking Place Law.

“Market area” shall mean: