Somerset County treasurer reports progress on hotel tax issues
May 26—SOMERSET, Pa. — Somerset County Treasurer Anthony DeLuca said his efforts to boost hotel tax compliance from lodging providers has registered 82 more properties — an increase of 63%.
But it is uncertain how much that might increase the county's revenue from the 5% tax, which is added to overnight motel, Airbnb-type "home stays" and cabin rentals.
"A lot of people are paying the tax — even if they weren't registered with us as they should be," DeLuca said, "but without registering, we can't tell if we're getting what we're supposed to be getting."
There have been exceptions, though. DeLuca's office has been reviewing each case individually to ensure compliance.
Tax records showed that while one property owner was paying fees connected to online Airbnb rentals, that owner wasn't paying the tax for years with private, person-to-person bookings, he said.
The Seven Springs-area homeowner owes $14,000 — a total dating back to 2016 — and efforts are underway to work with the owner to recoup the money, DeLuca said.
Pennsylvania's counties have been imposing hotel taxes for the past 20 years. Cambria County, in 2016, and Somerset County, in 2018, raised those taxes to 5% to increase revenue to support tourism marketing.
Somerset County has averaged as much as $1.5 million in revenue annually from the tax in recent years. The county is able to divide the tax among trail development, tourism grants and Go! Laurel Highlands, which markets the area to visitors.
Cambria County collected $622,625 in 2021 from a list that included 27 rental establishments and bulk payments from third-party booking sites such as VRBO and Airbnb, Cambria County Treasurer Lisa Kozorosky said. She did not have a breakdown immediately of the number of rentals those companies represented, saying the payouts are vague.
DeLuca said he also continues to have issues with the quarterly statements that counties receive from home-stay businesses. He has requested additional information about the tax breakdown that some of the agencies charge — in one case, 11.83%.
Somerset County has a 5% fee, while the state levies a standard 6% fee.
"Where is that other .83% going?" he asked. "That's what I'm trying to figure out."
Kozorosky credited DeLuca, a retired state police investigator, for going "above and beyond" to find discrepancies within Somerset County's registration list.
She said she had no indication Cambria County's list was inaccurate.
"But I wish we had the time and the staff and the resources to do what he is doing," she said.
