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May 3, 2008 4:17 pm US/Eastern
Councilman Wants To Slash Drink Tax Rate
PITTSBURGH (AP) ―
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Allegheny County Council passed a 10 percent tax on poured drinks that went into effect on Jan. 1, 2008.
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An Allegheny County councilman wants to slash the new 10 percent drink tax by half and then eliminate the levy altogether.
Republican Councilman Chuck McCullough acknowledges his proposal faces an uphill battle with the 15-member council, which has just four Republicans.
McCullough says he wants to cut the tax rate to 5 percent by July 1 and repeal it in January because returns show the county will receive about $36 million to $40 million.
The county enacted the tax on poured alcoholic drinks and a $2-per-day car rental tax this year to help pay its $30 million public transit subsidy.
Restaurant and bar owners say the drink tax is hurting their businesses.
Allegheny County Executive Dan Onorato says the tax is here to stay.
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