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Philadelphia Council Drops Mayor’s Hotel and Short‑Term Rental Tax Proposal

State lawmakers refused to authorize the hotel tax, forcing Council to abandon the mayor’s revenue plan and seek other funding for schools and homeless services.

Overview

  • Council President Kenyatta Johnson put the hotel‑tax bill on hold on Wednesday, effectively collapsing Mayor Cherelle Parker’s plan to raise taxes on hotels and short‑term rentals.
  • Sources in Harrisburg told reporters there are not enough votes in the split General Assembly to approve the needed authorization for a hotel tax increase.
  • City Council members say none of the remaining new‑tax proposals — including a $1 rideshare fee and a 25‑cent delivery tax — currently have the nine votes required to pass a preliminary budget.
  • Airbnb launched a five‑figure ad campaign and organized host letters opposing the short‑term rental increase while tourism and hotel groups warned that diverting hotel tax revenue would harm convention and visitation funding.
  • With the mayor’s recurring tax proposals rejected, Council moved to allocate about $48 million in one‑time savings to the School District and approved a smaller revenue change from cell‑tower use fees while leaders look for durable funding solutions.