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 restrictio...
Click here for full text