The bill amends Title 16 of the Pennsylvania Consolidated Statutes to enhance the hotel room rental tax in second class and second class A counties by allowing county commissioners to impose a 5% excise tax on hotel room rentals. It establishes a new chapter for the Downtown Pittsburgh Revitalization Initiative, which includes the creation of the Downtown Development Authority and the Downtown Revitalization Fund. The authority will serve as a special purpose local government unit responsible for overseeing significant downtown projects aimed at boosting tourism and commerce, with a governance structure that includes a board appointed by local officials. The bill also emphasizes the need for additional revenue sources to support revitalization efforts and improve civic, cultural, and recreational facilities.

Key provisions of the bill grant the authority new powers, including the ability to acquire and manage properties, enter into contracts, conduct financial audits, and issue bonds. It also outlines limitations on the use of eminent domain, ensuring that the authority cannot acquire Commonwealth-owned property, and clarifies that its financial obligations do not constitute a debt of the Commonwealth. Additionally, the bill allows the Department of Community and Economic Development to make capital grants directly to the authority and increases the hotel tax rate in the central county from 2% to 4% over a specified timeline. The Downtown Revitalization Fund will be managed by the authority to finance capital costs for downtown projects, with strict limitations on expenditures and a requirement for the treasurer of each central county to collect and manage the increased hotel tax revenue. The act is set to take effect immediately upon passage.