title
Motion Expressing the Sense of Council of Allegheny County urging the General Assembly to undertake the amendment of 53 P.S. §8601, governing taxation for public transportation, and 4 P.S. §1407, governing the uses by counties of the second class of revenues distributed from the Pennsylvania Gaming Economic Development and Tourism Fund, in order to provide counties of the second class with the flexibility necessary to effectively manage their budgetary position while not overburdening the owners of taxable property.
body
WHEREAS, Act 44 of 2007 created a new provision of Pennsylvania law, codified at 53 P.S. §8601, enabling the imposition of taxes on certain alcoholic beverages and certain rental vehicles by counties of the second class; and
WHEREAS, under the terms of 53 P.S. §8601(A), the only permissible use for revenues raised from the two authorized taxes is to "obtain financial support for transit systems," and the provisions of that section further require that "[m]oney obtained from the imposition shall be deposited into a restricted account of the county;" and
WHERAS, 53 P.S. §8601(B)(1)(I) establishes a maximum rate for the tax on alcoholic beverages equal to the ten percent (10%) maximum authorized under the terms of the First Class School District Liquor Sales Tax Act of 1971 (P.L. 153, No. 7); and
WHEREAS, although the tax on alcoholic beverages in Allegheny County was initially estimated to raise roughly $28 million, collection data from early 2008 suggest that the actual collections could easily exceed $35 million and may approach $40 million; and
WHEREAS, the highly restrictive nature of 53 P.S. §8601(A) require that this excess revenue be used to obtain financial support for transit systems, even as the County struggles to manage a $30 to $35 million structural deficit; and
WHEREAS, amendment of 53 P.S. §8601 to authorize a maximum tax on alcoholic beverages of no more than seven percent (7%) and remove the restriction on permissible uses for the revenues raised would bring the County's revenue collections into closer accord with the amount actually necessary to fully fund the Port Authority, and would also permit the County to use any excess revenues from the alcoholic beverage or car rental taxes to aid in managing its structural deficit without overburdening the County's property tax payers to an even greater extent; and
WHEREAS, it is the judgment of Council that 4 P.S. §1407(d), governing permissible uses of revenues distributed from the Pennsylvania Gaming Economic Development and Tourism Fund, should also be amended in order to remove all restrictions on the County's use of such revenues and, in the process, allow the County to cover any deficiency in funding for the Port Authority in the event that alcoholic beverage and/or rental vehicle tax collections are insufficient, as well as to further alleviate the property tax burden borne by the County's property owners;
NOW THEREFORE, IT IS MOVED, AND IT IS THE SENSE OF THE COUNCIL OF ALLEGHENY COUNTY, the General Assembly is hereby urged to undertake the amendment of 53 P.S. §8601, governing taxation for public transportation, and 4 P.S. §1407, governing the uses by counties of the second class of revenues distributed from the Pennsylvania Gaming Economic Development and Tourism Fund, in order to provide counties of the second class with the flexibility necessary to effectively manage their budgetary position while not overburdening the owners of taxable property.
IT IS FURTHER MOVED that the Council supports the amendment of 53 P.S. §8601 to:
A. Reduce the maximum allowable rate for the tax on certain alcoholic beverages by counties of the second class from ten percent (10%) to seven percent (7%) in order to bring the County's revenue collections into close accord with the amount actually necessary to fully fund the Port Authority; and
B. Remove the restriction on permissible uses for the revenues raised in order to permit the County to use any excess revenues from the alcoholic beverage or car rental taxes to aid in managing its structural deficit without overburdening the County's property tax payers.
IT IS FURTHER MOVED that the Council supports the amendment of 4 P.S. §1407(d) in order to allow the unrestricted use of Economic Development and Tourism (ED&T) funds by the County to cover any deficiency in funding for the Port Authority in the event that alcoholic beverage and/or rental vehicle tax collections are insufficient, as well as to further alleviate the property tax burden borne by the County's property owners in the event that tax collections are sufficient to fully fund the Port Authority.