Pennsylvania hotel tax hike could affect Pittsburgh's economy

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Local officials say a proposed hotel tax would have devastating effects to the region long-term.

They fear tourism would hit a stand-still, with visitors and companies taking their business elsewhere.

"It would really put us at a competitive disadvantage against other cities,” Pittsburgh Mayor Bill Peduto said.

Peduto candidly talked about the proposed state hotel tax that would nearly double to 11 percent. Add on the current city tax, and that would be a 19 percent tax.

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He said passing the measure would cripple tourism and likely prevent major conventions and events from happening in Philadelphia or Pittsburgh, which would have the two highest hotel taxes in the country.

"It would be devastating to see it stopped simply because Harrisburg hasn't been able to figure out how to balance the budget,” Peduto said.

Visit Pittsburgh said they just learned of the proposed tax hike on Tuesday.

They have been doing everything in their power to steer lawmakers in another direction and fill the $2.2 billion budget gap elsewhere.

"This is a real concern to the hotels industry in Pittsburgh," Visit Pittsburgh CEO Craig Davis, said.
 
Channel 11 will continue to monitor the proposal and budget talks