The Philadelphia Hospitality Investment Levy (PHiL) was passed by City Council in September 2017 in order to increase overnight guest visits to the City of Philadelphia. The assessment rate is 0.75% of gross short-term guest sleeping room rental revenue and the collected funds are used to bring new business to the City of Philadelphia.
The PHiL is governed by a board of 14 hotel General Managers from multiple geographic areas across the City of Philadelphia and one board member from the City of Philadelphia. The board is responsible for reviewing and approving PHiL Grant Applications, with the main objective to approve grant applications which directly benefit City of Philadelphia hotels.
Which hotels are responsible for the PHiL?
Any hotel that is in Philadelphia city limits, the PHiL covers all hotels that have 50 rooms or more in Philadelphia County.
Is this another room tax?
No, the PHiL is an assessment that is collected by the PHiL
What was the official start date for the PHiL?
January 1, 2018.
What will the proceeds of the PHiL be used for?
The purpose of the PHiL is to fill hotel rooms by incentivizing conventions and large events to come to Philadelphia. For example, if a convention or a large event is trying to decide between different cities, proceeds of the PHiL may be used to cover an expense of a convention or large event. It could also be used for a cash incentive.
How will awards from the fund be decided?
Each convention or large event that requests awards will complete an application. The applications will be forwarded to a board of 14 hotel General Managers and 1 representative from the City who will vote on which applications will receive funds.
What are the criteria for giving awards?
The applications will be judged on how many room nights the convention or large event will sell and what time of year they would come to Philadelphia. An incremental return of $8 in room revenue will be generated by every $1 that is awarded by the fund. However, If a convention or large event will come during a need time, then consideration will be given.
Is the PHiL assessment subject to the sales and hotel taxes?
Yes, the PHiL assessment should appear above both the sales and hotel tax on the folio.
How should the charge appear on the guest folio?
“Philadelphia Hospitality Investment Levy”
How will I know what amount is due at the end of the month?
Hotels receive a remittance form at the end of each month. Hotels are required to report gross room rental revenue and exempt room rental revenue. The 0.75% is then be applied to determine the final amount due.
What types of room stays are exempt from the new assessment?
Room stays eligible for exemption are room stays greater than thirty (30) consecutive days, complimentary rooms provided by the hotel business owner at no cost to the guest, or stays pursuant to contracts executed prior to July 1, 2017, including contracted stays for airline crews. Any guest that is exempt from paying hotel occupancy tax is also exempt from the PHiL.
Where can I review the official published ordinance?