PR&LA Fall 2018

20  • PENNSYLVANIA RESTAURANT & LODGING matters • Fall 2018 STATE LOCAL LEGISLATIVE CORNER State Items Federal Items Immigration, bringing back 15-year depreciation, healthcare reform, and drive-by lawsuits continue to be priorities of the association this fall. The chances of Congress tackling any of them decreases with each passing day. ELECTION YEAR 2018 is a key election year, possibly more than any previous year. All 253 members of the House, 25 members of the Senate, the Governorship, and one U.S. Senate seat are up for grabs this November. The outcome of this election could enhance or completely change PRLA’s legislative priorities. Make sure to read our weekly Legislative Update email for updates and analysis. STATE BUDGET IN AN ELECTION YEAR For the first time in recent history, and because it is an election year, the legislature passed a full budget package before the June 30 deadline. TOURISM LINE ITEM Just like last year, an overly inflated tourism line item of $17.839 million hides the fact that only $4.067 million was dedicated to actual statewide tourism promotion. GOALS FOR THE FALL PRLA has two legislative priorities that very well could reach the Governor’s desk this fall: • HB 1511 (Quinn—R, Bucks): would close the online travel company loophole and require online travel companies to remit tax on the retail rate of hotel stays. • HB 1810 (Heffley—R, Carbon): would require online home sharing sites to share their listings with the Department of Revenue to ensure tax compliance and allow the Department to share that information with County Treasurers to allow for tax compliance and enforcement on the local level. PREEMPTION OF FOOD AND DRINK TAXES House Bill (HB) 2241 (Mustio—R, Allegheny) was moved out of committee and continues to be very important, especially with the recent Supreme Court ruling on the Philadelphia beverage tax. The legislation would preempt municipalities from assessing a tax on food, beverage, and food and beverage containers at the local level. The bill, if passed and signed by the Governor, would eliminate Philadelphia’s current beverage tax. PRLA supports the legislation. DEPARTMENT OF LABOR SALARY THRESHOLD AND DUTIES TEST CHANGES The open comment period has ended and now we wait to see what feedback the Department of Labor will take into consideration as they amend their proposal. As a reminder, the proposal by the state Department of Labor would impact Pennsylvania-based businesses and non-profits and would increase the minimum you may pay salaried employees to $47,892/year by 2022. LIke the Obama Administration’s proposal, the state proposal does not take into consideration the impact it would have on a broad array of businesses and their operations in the Commonwealth. RESTAURANT LICENSE AUCTION The winning bids from the PLCB’s sixth restaurant license auction have been announced. Nineteen licenses received bids ranging from $25,331 in Bradford County to $351,001 in Bucks County. Six licenses did not receive a bid.