title
An Ordinance amending the Allegheny County Code of Ordinances, Division 1, entitled "Administrative Code," Article 808.A, "Alcoholic Beverage Taxation," §5-208A.02 in order to reduce the rate of the County's tax on the sale at retail of liquor and malt and brewed beverages within the County, as well as to clarify the permissible uses of revenues raised from the County's alcoholic beverage and rental vehicle taxes.
body
WHEREAS, under Act 44 of 2007, the Pennsylvania General Assembly and Governor have empowered Counties of the Second Class to impose a tax on the sale at retail of liquor and malt and brewed beverages within the County in order to generate revenue to support transit; and
WHEREAS, such a tax was enacted in 2007 under the terms of Ordinance No. 54-07, now codified within Article 808A of the Administrative Code of Allegheny County; and
WHEREAS, when enacted, the rate of the County's alcoholic drink tax was set at ten percent (10%), the maximum allowable under the terms of Act 44; and
WHEREAS, through the first quarter of collections, it appears that the 10% tax rate will result in collection of significantly more revenue than is needed to meet the County's obligations in obtaining financial assistance for transit systems by matching state funding at the rate required by Act 44; and
WHEREAS, through the first quarter of collections, it also appears that the current tax rate will result in collections that exceed the amount budgeted by the County for drink tax revenues by as much as 28%; and
WHEREAS, it is therefore the desire of Council to reduce the rate of the County's alcoholic drink tax to five percent (5%), effective July 1, 2008, in order to render the County's collections consistent with the collection amount that was predicted and budgeted when the tax was enacted in December 2007; and
WHEREAS, it is the judgment of Council that it is manifestly unfair from a public policy standpoint to impose a tax relative to the Port Authority on an unassociated industry; and
WHEREAS, it is also the judgment of Council that the permissible uses of revenues raised from the County's alcoholic beverage and rental vehicle taxes by the County should be clarified consistent with the provisions of 53 P.S. 8602(a);
The Council of the County of Allegheny hereby enacts as follows:
SECTION 1. Amendment of Article 808A.
The Allegheny County Code of Ordinances, Division 1, entitled "Administrative Code," §808A.02, is hereby amended as follows:
§5-808A.02. Imposition of the Allegheny County Alcoholic Drink Tax.
A tax is hereby imposed upon the sale at retail in the County of liquor and malt and brewed beverages, which are sold or dispensed during Tax Year 2008, or any part thereof, and for each tax year thereafter, by any person licensed by the Commonwealth of Pennsylvania to sell or dispense liquor or malt or brewed beverages. The tax shall be levied at the rate of ten percent (10%) five percent (5%) of the sale price of each beverage meeting the definition of "liquor" or "malt or brewed beverages" contained within this Article.
All revenues derived from the imposition of the tax authorized by this article shall be used solely for the purposes of providing matching revenues as required under the terms of Act 44's matching fund provisions, codified at 74 P.S. §1501 et. seq., and, in the event that alcoholic drink tax revenues are generated in excess of those required to meet the statutory matching fund requirement, for the purpose of funding other operating or capital needs of the Port Authority.
SECTION 2. Amendment of Article 808B.
The Allegheny County Code of Ordinances, Division 1, entitled "Administrative Code," §808B.02, is hereby amended as follows:
§ 5-808B.02. Imposition of rental vehicle tax.
A. There is hereby imposed an excise tax on the rental of rental vehicles in the County of Allegheny during Tax Year 2008, or any part thereof, and for each tax year thereafter. For purposes of this section, the rental of a rental vehicle in the County of Allegheny occurs whenever a person enters into a contract for and/or takes possession of a rental vehicle in the County of Allegheny from a vehicle rental company.
B. The tax imposed by this article shall be collected by a vehicle rental company at the time a rental vehicle is rented by that vehicle rental company, and shall be remitted by the vehicle rental company to the County in accordance with the requirements of this article and any rules and regulations to be promulgated in furtherance of this article.
C. The rate of tax shall be $2 per day, or part of a day, on which a rental vehicle is rented within Allegheny County.
D. All revenues derived from the imposition of the tax authorized by this article shall be used solely for the purposes of providing matching revenues as required under the terms of Act 44's matching fund provisions, codified at 74 P.S. §1501 et. seq., and, in the event that rental vehicle tax revenues are generated in excess of those required to meet the statutory matching fund requirement, for the purpose of funding other operating or capital needs of the Port Authority.
SECTION 3. Effective Date of Tax Rate Deduction and Tax Repealer for Subsequent Tax Years.
The provisions of Section 1 of this Ordinance shall become effective on July 1, 2008. The tax authorized by §5-808A.02 shall be repealed in its entirety, along with Article 808A of the Administrative Code of Allegheny County, effective January 1, 2009.
SECTION 4. Severability. If any provision of this Ordinance shall be determined to be unlawful, invalid, void or unenforceable, then that provision shall be considered severable from the remaining provisions of this Ordinance which shall be in full force and effect.