Title
An Ordinance amending the Allegheny County Code of Ordinances, Division 1, entitled "Administrative Code," Article 808.A, in order to reduce the rate of County taxation on the sale at retail of liquor and malt and brewed beverages within the County.
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, the statutory limit upon such County alcoholic beverage taxes was set at 10% of the purchase price under the terms of Act 44 of 2007, which permits the County to use revenue raised through the imposition of the tax only for the purpose of assisting transit systems within the County; and
Whereas, Allegheny County imposed such a tax on alcoholic beverages, effective January 1, 2008, through the enactment of Ordinances 54-07-OR on December 10, 2007; and
Whereas, Ordinance 54-07-OR, codified at Article 808.A. of the Administrative Code of Allegheny County, provides for the rate of taxation on alcoholic beverages to be set at the statutorily allowable maximum 10%; and
Whereas, at the time the alcoholic beverage tax was imposed, revenue derived from it was budgeted at $28 million for fiscal year 2008; and
Whereas, the County's actual collection rate over the first seven months of 2008 indicates that the County will ultimately collect more revenue than is necessary and that was budgeted for the statutorily delineated purpose; and
Whereas, the first seven months' collection data for the alcoholic drink tax indicates that a 30% reduction in the tax rate should result in the collection of adequate revenues for the statutory delineated purposes, while allowing a sufficient margin for variations on collections over the course of future tax years; and
Whereas, it is the desire of Council to decrease the rate of alcoholic beverage taxation by 30%, effective January 1, 2009, in order to allow for a full year of revenue collections data to be gathered and to permit for a complete analysis on the impact of the drink tax as currently enacted on both the local hospitality industry and the Port Authority;
The Council of the County of Allegheny hereby enacts as follows:
SECTION 1. . Amendment of Article 808.A.
The Allegheny County Code of Ordinances, Division 1, entitled "Administrative Code," Article 808.A, "Alcoholic Beverage Taxation," §5-808.A.02, is hereby amended as follows:
§5-808.A.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%) seven percent (7%) of the sale price of each beverage meeting the definition of "liquor" or "malt or brewed beverages" contained within this Article.
SECTION 2. Effective Date.
The provisions of this Ordinance shall become effective January 1, 2009.
SECTION 3. 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.
SECTION 4. Repealer. Any Resolution or Ordinance or part thereof conflicting with the provisions of this Ordinance is hereby repealed so far as the same affects this Ordinance.