Proposition No. 1


To be voted on by all borough voters

Shall Ordinance 2005-05 (Substitute), providing for the imposition of up to four (4) percent transient accommodations tax, be ratified?

YES [A Yes vote authorizes the borough to implement a transient accommodations tax of up to four (4) percent of the accommodations room rent.]

NO [A No vote would prevent the establishment of a borough transient accommodations tax.]


A "transient accommodations tax," otherwise known as a "bed tax," is a tax imposed on the short-term rental of accommodations such as hotel, motel, and bed and breakfast rooms. An accommodations tax of up to four (4) percent could be added to the accommodations price for a room rented for a term of less than 30 consecutive days for dwelling, lodging or sleeping purposes. It would be in addition to the existing borough sales tax, and the rate if any would be determined annually at the budget process.

The borough may enter into cooperative agreements with cities in the borough to promote tourism using funds generated by this tax. A room tax fund will be established to account for revenues from the transient accommodations tax. An amount equal to at least 25 percent of the transient accommodations taxes received for the preceding fiscal year shall be transferred to the room tax fund. The balance of transient accommodations taxes remaining after funds have been transferred to the room tax fund shall be available to support general government operations.

Bed taxes imposed by cities within the borough would be offset by up to one-half of the borough transient occupancy tax.

If enacted, this tax is projected to generate up to $ .9 Million annually or .2 mills of property tax.