We present multi-wavelength observations of PS16dtm (also known as SN 2016ezh), an optically discovered super-luminous transient that occurred at the nucleus of SDSSJ015804.75-005221.8, a known Narrow-line Seyfert 1 galaxy hosting a ∼10 6 M black hole. The transient was previously claimed to be a Type IIn SLSN due to its luminosity and hydrogen emission lines. The light curve shows that PS16dtm brightened by about two magnitudes in ∼50 days relative to the archival host brightness and then exhibited a plateau phase for about ∼100 days followed by the onset of fading in the UV. During the plateau PS16dtm showed no color evolution, maintained a steady blackbody temperature of ∼1.7 ×10 4 K, and radiated at approximately the Eddington luminosity of the supermassive black hole. The spectra, spanning UV to near-IR, exhibit multicomponent hydrogen emission lines and strong Fe II emission complexes, show little evolution with time, and closely resemble the spectra of NLS1 galaxies while being distinct from those of Type IIn SNe. In addition, PS16dtm is undetected in the X-rays by Swift/XRT to a limit an order of magnitude below an archival XMMNewton detection of its host galaxy. These observations strongly link PS16dtm to activity associated with the supermassive black hole and are difficult to reconcile with a SN origin. Moreover, the properties of PS16dtm are unlike any known form of AGN variability, and therefore we argue that it is a tidal disruption event in which the accretion of the stellar debris powers the rise in the continuum and excitation of the pre-existing broad line region, while at the same time providing material that obscures the X-ray emitting region of the pre-existing AGN accretion disk. A detailed TDE model fits the bolometric light curve and indicates that PS16dtm will remain bright for several years; we further predict that the X-ray emission will reappear on a similar timescale as the accretion rate declines. Finally, we place PS16dtm in the context of other TDEs and find that tidal disruptions in active galaxies are an order of magnitude more efficient and reach Eddington luminosities, likely due to interaction of the stellar debris with the pre-existing accretion disk.