Reading, PA Hotels & Lodging: Transient Occupancy Tax (2026)
Key Facts
- Tax rate
- 1½ mills ($1.50 per $1,000 receipts)
- Applies to
- Hotels, motels, rooming houses, apartment houses
- Separate room tax
- None: folded into citywide BPT
- Administered by
- City Finance Director, Code Ch. 549
- Max penalty
- $600 fine plus up to 30 days jail
Summary
Reading has no separate hotel or room occupancy tax. Hotels, motels and rooming houses instead pay the citywide Business Privilege Tax on room, meal and service receipts, currently 1½ mills of gross receipts.
The rate of the tax on each dollar volume of gross annual receipts of every person engaged in occupations or business in the City shall be 1 1/2 mills; 1 1/2 mills shall mean $1.50 per $1,000 volume of gross annual receipts... Generally, persons operating hotels, motels, apartment houses, boarding houses, nursing homes, rooming houses and all other such establishments are taxable on receipts from renting of rooms, furnishing of meals and any other service rendered.
Official source re-checked September 7, 2026: no newer edition of the code had been published (publisher’s edition: 2026 S-8: Current through August 10, 2026).
Full Breakdown
Reading's Business Privilege Tax Ordinance (Code Ch. 549, Part 4) taxes the privilege of doing business in the city on gross annual receipts, currently 1 1/2 mills, $1.50 per $1,000, for most businesses. Section 549-515.N specifically lists hotels, motels, apartment houses, boarding houses, nursing homes and rooming houses as taxable on their receipts from renting rooms, furnishing meals and other services. There is no separate room-night or percentage occupancy tax layered on top; a hotel or motel operator registers for the same business privilege license and pays the same citywide rate every other City business pays, filed through the Finance Director's office.
Violations & Fines
Operating without a license, failing to file, or filing a false return under § 549-406 draws a fine up to $600 plus costs, default punishable by up to 30 days in jail; each day is a separate offense.
Frequently Asked Questions
Does Reading charge a separate hotel or room occupancy tax?
What hotel receipts count toward the tax?
Sources & Official References
Other rules in Reading
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