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Nov 18, 2009 8:50 pm US/Eastern
City Council Considers Alternative To Tuition Tax
PITTSBURGH (KDKA) ―
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Pittsburgh City Council (File)
KDKA
The proposed tax on tuition payments in Pittsburgh isn't dead yet, even after a state oversight committee rejected the city's proposed budget for 2010.
But Pittsburgh City Council is still looking into a possible alternative for that tax.
Councilman Ricky Burgess offered a new bill as an alternative to the likely legal battle with local colleges over the mayor's tax plan.
"I hope that the university presidents have a change of heart, that they will take down their armor, put down their swords, let us sit down and let us reason together," Burgess said.
His staff handed out a proposal based on what happens in Boston, Mass.
Burgess' bill would have the city calculate the worth of tax exempt land owned by nonprofits, calculate the cost of city services to nonprofits per resident and authorize the mayor to enter into agreements with nonprofits for payments in lieu of taxes.
"Educational institutions give the city of Boston $8,380,000 a year over the last year. Medical institutions have made close to $5 million a year to the city of Boston," he said.
Originally, Burgess' bill only addressed educational institutions.
"We're exempting UPMC, Highmark, UPMC and Allegheny West Penn from this bill," Councilman Bill Peduto said. "We're going after just education?"
"I am not unwilling to add those institutions," Burgess responded.
The adjustment was made to the bill.
This bill came after a contentious session about the mayor's proposed tax on the privilege of paying tuition.
Council also debated about the administration's hiring of Philadelphia attorney Joseph Bright who says the tax is legal and who charges the city $650 an hour.
There will not be a vote on the tuition bill until after post-agenda Friday and a public hearing on November 30.
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