Showing posts with label drink tax. Show all posts
Showing posts with label drink tax. Show all posts

Saturday, May 7, 2011

County Exec Candidates Debate

A week and a half before the May 17 primary election, the two Republicans and two Democrats who want to succeed Dan Onorato as Allegheny County Executive square off Friday in a debate sponsored by the League of Women Voters and VisitPittsburgh.
The candidates discussed everything from the drink tax....to property taxes...to Marcellus Shale drilling.
The drink tax was implemented to help the county cover the local match required to receive state funding for the Port Authority of Allegheny County. It was originally set at 10% on poured alcoholic drinks in the county and was then reduced to 7%.
Mark Patrick Flaherty, who is seeking the Democratic nomination for county executive, said he would lower the tax as much as possible but not eliminate it and then look for a statewide solution to transportation funding....
"It failed to solve our problem which is transportation. We've faced massive transportation cuts and the drink tax hasn't cured that."

Flaherty's opponent in the Democratic Primary, Rich Fitzgerald, says the drink tax is needed if the county wants to receive state funding for the Port Authority without raising property taxes....
"We took $28 million which is our local share that we have to provide to the Port Authority to get the (state) money. Mr. Flaherty was controller in 2007. He never said a word about it (the drink tax) being a mistake."

Republican Chuck McCullough says he's dead set against the drink tax...
"I've gone all the way to the (Pennsylvania) Supreme Court to stop the county executive from tying a reduction in the drink tax to an increase in the property tax. It (drink tax) will be gone as I get into office."

McCullough's opponent D. Raja says he would reduce the drink tax as much as possible..
"We have a budget shortfall that this would cause if it was completely eliminated. I would need to understand the impact of that before determining if that's a feasible solution."

The candidates meet in another forum hosted by the African American Chamber of Commerce Monday afternoon.

Thursday, January 20, 2011

State Senator Introduces Legislation to Lower Drink Tax

The drink tax in Allegheny County might be lowered if legislation by State Senator Jim Ferlo (D-Allegheny County) passes. Ferlo is planning on introducing a bill aimed at lowering the drink tax permitted from the current 7 to a maximum 5 percent. His plan will also include the City of Pittsburgh and Allegheny County dividing the revenue of the tax.

Ferlo says that the tax is important because taverns and bar make up a large proportion of the local economy in the county. "I think a lot of folks, even those who live outside the city, will see the revitalization of some of our neighborhood business corridors. And a lot of that rests on the viability of taverns and restaurants. They're a mainstay in community redevelopment and main street implementation and preservation of historic structures on neighborhood levels."

Funds collected by the County under the plan would continue to go towards transportation. While revenue collected by the city would go to a trust fund for police , fire and public safety protection. The legislation would continue to entrust the county Treasurer with collection.

Monday, December 6, 2010

County Councilman: Cut Drink Tax

Allegheny County’s tax on alcoholic drinks would be cut from 7% to 6% under a proposal from County Councilman Chuck McCullough.

McCullough says the current tax rate generated about $4 million more than the $27.7 million needed to fund the county’s share of the Port Authority’s budget.

Each year, the car rental tax and the drink tax give Allegheny County the funds it needs to provide a 15% match to state funding for the Port Authority. With $185 million in state aid, the target amount this year was $27.7 million, but McCullough says the two taxes combined for almost $32 million.

“I don’t think any of us want to see people overpay taxes, and that’s really what’s going on here,” says McCullough. “We’ve got more money than is needed for the Port Authority. It’s doing anybody any good just sitting in the county coffers. It can’t be used for general purposes. It’s only fair to give some tax relief to the taxpayers.”

McCullough helped reduce the drink tax from its original 10% rate to 7% for 2009. The at-large County Councilman says he’ll introduce the measure Monday, and he expects it to be resolved over the next few Council meetings.

Thursday, April 29, 2010

Gubernatorial Candidates Discuss Tourism Issues

Shortening the school year to allow for more recreation, dedicating a funding source for tourism, privatizing the state liquor system, high speed rail, funding the film tax credit and ways to support state parks were among the topics discussed at a debate held in gubernatorial debate held at a hotel in downtown Pittsburgh on Thursday afternoon.

The debate was sponsored by Visit Pittsburgh and The League of Women Voters. Four of the candidates attended: Dan Onorato, Robert Allan Mansfield, Joe Hoeffel and Jack Wagner. About a hundred people were in attendance.

The candidates were asked a series of questions that were in some way, related to the tourism industry. None of the candidates were in support of expansion of gaming in the state. However, Onorato said he was in support of gaming machines in bars. Wagner said he does not support the expansion considering all of the casinos that were supposed to have been built have not been built yet.

All agreed high-speed rail connecting Pittsburgh to Philadelphia would be an asset to Pennsylvania.

Mansfield said the state liquor system should be privatized, Onorato said this is not the time and spoke about his drink tax, Wagner said it should not be privatized, Hoeffel said the state should use its purchasing power and work out discounts.

All candidates agreed a budget should be passed on time and said if they were governor they would make it happen. Pennsylvania's budget has not been passed on time once in the last seven years.

Friday, October 2, 2009

Allegheny County keeps drink tax laws

Two separate bids to put voter referendum questions about the drink tax on Allegheny County ballots have failed in the Pennsylvania Supreme Court.
Both proposals were denied because the court ruled that only county council had the authority to regulate taxes, not voters.
Pennsylvania Restaurant Association Western Chapter President Jeff Cohen says this is a blow to the restaurant industry in Allegheny County, which he says will lose customers to businesses in neighboring counties. Cohen says his group will continue to fight the tax even though they have no more appeals to the court.
Cohen says while the tax is in place, it should only take effect until it raises the revenue needed for its intended target – the Port Authority.
One voter referendum question, proposed by the Restaurant Association, would have asked voters if they would like to cut the county drink tax to .5%.
County council proposed the other question, which asked voters if they preferred the drink tax to an increase in property taxes.
County Executive Dan Onorato reacted to the ruling bay saying, "I am glad the Supreme Court resolved this issue in the manner it did. The decision will ensure a ninth consecutive year with no property tax increase in Allegheny County."

Tuesday, January 6, 2009

McCullough Lauds Decision

Allegheny County Councilman today expressed his support for the decision made by Common Pleas Judge Judith F. Olson's to restrict drink tax revenue solely for Port Authority use.

McCullough says the judge made a brave decision and restored the rule of law in Allegheny County. The Councilman says the next step is for County Executive Dan Onorato to address the council and explain his intentions for the $12 million in tax revenue.

Onorato Will Not Appeal Ruling on Drink Tax Cash Appropriations

Allegheny County Executive Dan Onorato yesterday announced that he will not appeal Common Pleas Judge Judith F. Olson's decision to restrict drink tax revenue solely for Port Authority needs. He says that as per the judge's ruling, the $12 million slated for the county's transportation budget will be given to PAT for capital needs in 2009 and 2010, and that he will not raise property taxes to mend the deficit left in the county budget. Onorato mentioned that layoffs could possibly make up part of the deficit.

Meanwhile, although the drink tax was cut from 10 percent to 7 percent on Jan. 1, some bar owners continue to charge the same price for drinks. Some owners cite the poor economy for their price increase. Though it would not be illegal to charge more for drinks, County Treasurer John Weinstein says it would be illegal if the drink tax still appeared as 10 percent on patron's bills.

Monday, December 29, 2008

F.A.C.T. Hearing

After filing a lawsuit against Allegheny County on Dec. 18, F.A.C.T. members appeared in front of Judge Judith Olson in the Allegheny County Court of Common Pleas. They argued that the county is not allowed to use surplus money raised from the 10 percent drink tax or the $2 per-day tax on car rentals on anything other than the region’s Port Authority transit system. Allegheny Councilman Chuck McCullough said road and bridge restoration and repair should not count as an earmark.

However, Allegheny County Solicitor Michael Wojcik said the drink tax and car rental tax under Act 44 is "to provide financial support for transit systems." More constricted wording could have clearly marked the money for only the Port Authority to use.

Judge Olson said a decision on whether to place an injunction will be issued as quickly as possible.

Drink Tax Fight Goes On

Starting in January the Allegheny County tax on poured drinks will drop from 10% to 7% but that does not satisfy Kevin Joyce. Joyce manages the Carlton Restaurant in Pittsburgh and is a member of the Friends Against Counterproductive Taxation (FACT) board. He says he wants to see that tax rolled back to at least 3%. His group has been fighting against the tax since its inception. FACT is currently involved in an appeal to overturn a court ruling that prevented a question that would the drink tax to 0.5% from appearing on the November ballot. A hearing in that appeal is expected in late January with the goal of placing it on the May ballot. Today the group argues before a judge that the county must spend the funds on Port Authority operations and not on other transportation projects as is specified by the 2009 budget. Joyce says in 2008 the county will collect $44-46 million. That is $17-20 million more than needed for the Port Authority. Joyce says the county could roll the tax back to 3% and still meet PAT’s needs. However, he says had it not been for the efforts of FACT the tax would still by at 10%. Fact has also filed a lawsuit claiming that the county’s plans to use drink tax money to fund other transportation projects is illegal.
Joyce says the 10% tax has had a big impact on his sales. He says since January food sales have been up $42,000. That would usually result in $12-13 thousand in additional liquor sales. Instead, he says, liquor sales dropped by $100,000. He thinks the damage has been done and the lowering of the tax will not be enough to change the mind set that it is too expensive to drink in a bar or restaurant in Allegheny county.
Joyce says his patrons see the drink tax in a separate line of their bill so they will see a price reduction in January but for bars that do not present itemized checks they will have to decide what to do with their pricing. He says he thinks many will lower their prices but he says many bars have seen prices increase and sales drop so they may need to leave the prices where they are. He feels restaurants and bars are hurting with the tough economy and lawmakers need to understand how much worse the tax has made it. FACT plans to be active in upcoming county council elections in an effort to “change the face of county government.”

Thursday, December 18, 2008

Lawsuit filed against Allegheny County Council

The people of F.A.C.T. (Friends Against Counterproductive Taxation) have filed a lawsuit against the Allegheny County Chief Executive and Council about how surplus drink tax dollars can be used. Kevin Joyce, F.A.C.T. member and owner of The Carlton Restaurant in downtown Pittsburgh, says the drink tax and car rental tax revenue is strictly raised for the Port Authority. The tax surplus is estimated to be between $17 and $20 million by the end of the calendar year, which the county council decided to transfer to a general county fund at a recent meeting.

The general fund could use the money to improve county roads and transportation. However, Joyce says it is a loose link to say the drink tax money is fixing a road where a Port Authority bus travels.

Wednesday, September 24, 2008

Onorato Plans To Lower Drink Tax In 2009

County Executive Dan Onorato says when he presents his budget proposal to county council he will recommend the drink tax be lowered starting in 2009. County Council member Jim Burn will introduce legislation needed to reduce the tax, but drink tax opponent Kevin Joyce says the proposed reduction is not an acceptable compromise. Onorato says any revenue that exceeds what is needed to fund the port authority will be used for infrastructure needs in the county.

The drink tax is currently on pace to exceed the proposed amount of revenue, Onorato said when he came up with his figures for what he felt the tax would bring in he wanted to be fiscally responsible and not over estimate the figures. The $2 a day car rental tax will not be changed for 2009.

Tuesday, September 9, 2008

Challenge Filed to Drink Tax Petitions

Citizens Against Raising Taxes on Property (CARTOP) will challenge the petitions filed to put a question reducing Allegheny County’s drink tax from 10 percent to 0.5 percent. The challenge must be filed by 5:00pm Tuesday. CARTOP President Shawn Flaherty says the petitions included names like Steelers Mascot Steely McBeam and signatures from people who do not live in Allegheny County. He says of the more than 44,000 signatures submitted, only 16,000 are valid. That would be well below the 23,000 needed. Flaherty says his organization is ready to go before a judge and point out every signature that is invalid. A three-judge panel threw out both drink tax referendums, but that decision has been appealed.

Tuesday, September 2, 2008

Elections Board Tosses Ballot Questions

The Allegheny County Elections Board has eliminated two ballot measures dealing with the 10% drink tax enacted this year to subsidize public transit. Three county judges ruled that questions were not legal because only County Council can lower or raise taxes. The judges heard the case because the Elections Board' regular members had declared positions on the ballot measures and recused themselves. The proposed referendum by opponents of the drink tax, Friends Against Counterproductive Taxation (FACT), would has asked voters to reduce the tax from 10% to point-5 percent. Another referendum put forth by Democrats on Council would have asked voters if they wanted to eliminate the drink tax in favor of higher property taxes. Kevin Joyce, a board member of FACT, says the county code indicates that only Council can raise or lower property taxes but doesn't mention other levies like the drink tax. Joyce says their next step is to appeal to Common Pleas Court.

Thursday, August 28, 2008

FACT Referendum Illegal Solicitor Says

Allegheny County Solicitor Mike Wojcik issued a legal opinion yesterday declaring that the referendum proposed by the group Friends Against Counterproductive Taxation (FACT) should not be placed on the November ballot.

FACT had gathered over 44,000 signatures on a petition for their question which asks if voters are in favor of slashing the the drink tax from 10 percent to 0.5 percent.

Allegheny County Council also issued their own referendum question to be placed on the ballot which reads, "Shall the county enact an ordinance to increase real estate taxes in order to repeal the alcoholic drink tax?"

Wojcik says FACT's referendum is illegal because it violates the Home Rule Charter and does not suggest an alternative source of revenue in place of the drink tax. He also ruled that the question proposed by council is legal. His opinion will be forwarded to the elections panel--which consists of Common Pleas judges Jill Rangos, Christine Ward, and Dwayne Woodruff--who will review both FACT's and county council's question.

FACT member and owner of the Carlton restaurant Kevin Joyce says he is not at all surprised by the solicitor's opinion. Joyce also expects a long legal battle between the two sides with the ballot question case potentially going all the way to the Pennsylvania Supreme Court.

Either side has a chance to appeal any election panel decision within 7 days.

Thursday, August 21, 2008

Drink Tax referendum challenged

Councilman Chuck McCullough and Smithfield Cafe owner John Petrolias filed a lawsuit Wednesday against a referendum bill passed by County Council August 5th. Petrolias thinks it's tough times for any tax hike. He says like the way people do, government should "make do with what you have." Petrolias says the hospitality industry is always targeted and a broad-based tax to support the Port Authority is more justified.

However, the referendum asks voters whether they want to eliminate the 10 percent drink tax in exchange for increased property taxes.

Friday, August 8, 2008

Citizens Against Raising Taxes on Property (C.A.R.T.O.P.) analyze F.A.C.T.

A newly formed group wants to inform Allegheny County voters that there will be consequences to vote for the referendum on lowering the drink tax.

The people of Citizens Against Raising Taxes on Property, or CARTOP, believe that the question is incomplete and unfair to voters.

Shawn Flaherty of Flaherty Fardo says county property taxes are at their limit, but the drink tax lets a different group of people support the county.

Instead of property owners being burdened with additional tax, he asks if people who are willingly buying a drink to be willing to pay a little extra.

Flaherty says the other option to supplement lowered drink taxes would be to cut the county budget.

He speaks against FACT, who brought enough petition signatures to put a referendum question on November's election ballot to lower the drinking tax to 0.5%.

Friday, August 1, 2008

Deadline Looms for FACT Referendum

Monday, August 3rd, marks the last day over 200 Allegheny County bars and restaurants will have to collect petition signatures for a referendum concerning the county's 10 percent tax on poured alcoholic beverages. On Tuesday the petition will need to be submitted with 23,0006 valid signatures to add to the ballot the question of whether or not to cut the drink tax from 10 percent to 0.5 percent.

Friends Against Counterproductive Taxation (FACT) member and owner of The Carlton restaurant Kevin Joyce says he expects to have a enough signatures, but he does not know how many they have exactly to this point.

Voters will already see one ballot question concerning the drink tax in November. Allegheny County Council recently passed a bill adding the question of whether citizens would prefer a property tax hike in lieu of the drink tax.

County Chief Executive Dan Onorato has previously claimed that the only solution to an elimination of the drink tax would be a raise of property taxes.

But FACT members, disagree with the county's question and Onorato's claim. Joyce says that the deficit caused by a smaller drink tax could be covered through more strict management of county resources and tighter budgeting.

Onorato has also said that he believes the potential FACT ballot question could be illegal because it would unbalance the budget.

Currently the drink tax is estimated to raise over $25 million more than the necessary $30 million needed to subsidize public transportation.

Monday, July 21, 2008

Onorato says Ballot Question Illegal

Allegheny County Executive Dan Onorato says the petitions being passed around the county calling for a repeal of the poured drink tax would create an illegal ballot question. Onorato says the home rule charter stipulates that the county must have a balanced budget and anytime the budget is amended with either additional spending or revenue cuts an offset increase in revenue or cut in spending must also be enacted. He says the question being circulated by the group “Friends Against Counterproductive Taxation” only removes the tax. It does not propose new revenues or spending cuts. The county council is to review a few ballot questions of its own Tuesday night that are expected to all past legal muster. Onorato says he is not sure if he would launch a legal challenge to the F.A.C.T ballot question if members gather enough signatures but he says he will fight against any ballot question that would force property taxes to be raised.

Friday, July 18, 2008

County Council Could Have Multiple Referendums On Novembers Ballot

Allegheny County may see multiple referendum questions on this years ballot all revolving around the same issue, the port authority and the controversial drink and car rental taxes county council's committee on government reform has approved two bills that would put referendums on the November ballot. One calls for the reduction of the drink tax from 10% to .5%, and the car rental tax to be reduced from $2 dollars to 50 cents a day. The second bill sponsored by councilman Chuck McCullough calls for the elimination of the port authority, and the privatization of mass transit. McCullough says that move would bring much revenue to the county because the current land owned by the port authority is worth $1 billion and is not taxable, but would be if privatized. Council president Rich Fitzgerald is also proposing a bill that would require a raise in property taxes as a result of any reduction in the drink and car rental taxes. Council will discuss those bills during a special meeting Tuesday.

Tuesday, July 15, 2008

County Council Considers Own Referendum

Allegheny County Council tonight will hold a special public meeting to determine the legitimacy of adding their own drink tax referendum to the November ballot. Council President Rich Fitzgerald says tonight's meeting will "codify" council's ability to enact a referendum via ordinance and that he doubts a motion will be made to add a referendum tonight. A referendum would give voters the opportunity to choose between the 10 percent drink tax or a raise in property tax.