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Lancaster County Convention Center once again getting visitors bureau's hotel tax share

By - Last modified: April 19, 2013 at 3:32 PM

After three months of receiving its share of Lancaster County's hotel tax, the Pennsylvania Dutch Convention and Visitors Bureau is once again seeing the money redirected to the Lancaster County Convention Center Authority.

The authority has again experienced an “event of default,” county Treasurer Craig Ebersole said, meaning its bond reserves have fallen below minimums established in bond documents.

Because of that, the 20 percent of the county’s 3.9 percent hotel room tax that would go to the bureau is, as of April 1, going to the authority instead, Ebersole said.

The authority previously received the bureau’s share of the tax from April through December 2012.

The bureau continues to receive all proceeds from a 1.1 percent hotel excise tax. Together, the two taxes amount to a 5 percent charge.

The authority is responsible for paying debt service on $64 million in bonds used to build the Lancaster County Convention Center. Its share of the hotel tax was intended to cover those payments and the center’s operating deficit, but has proved insufficient.

 

Write to the Editorial Department at editorial@cpbj.com

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