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Judge: Drink Tax Surplus Only For Port Authority

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Jan 2, 2009 6:10 pm US/Eastern

Judge: Drink Tax Surplus Only For Port Authority

PITTSBURGH (KDKA) ― A judge has ruled that Allegheny County cannot use the surplus revenue from the controversial drink tax for other road and bridge projects.

Instead, it must only be used for the Port Authority.

Common Pleas Judge Judith Olsen heard further testimony this afternoon before making a ruling.

From the county's point of view the drink tax has been extraordinarily successful. It was supposed to raise $26 million for the Port Authority, but has exceeded that number by 15 million.

The county said they wanted to use the extra cash to plug some holes in the budget, but drink tax opponents say that move is against the law.

So they asked the judge to prevent the county from using the money for anything but the Port Authority. Ultimately, they say they want the drink tax reduced from the current seven percent to three or four percent.

"We are going to fight. We never thought from day one to put the tax on one industry. Anything that's for Port Authority should be broad based," said Jeff Cohen, of the Pennsylvania Restaurant Association. "We have a lot of high taxes already in this county and as we lose population we need to find a way to find other revenues so we don't have to hit one industry."

But officials with Allegheny County say they now plan to appeal the ruling. The county also says they may have to raise property taxes to make up for it.

Allegheny County Executive Dan Onorato released a statement.

"With today's injunction, Allegheny County now faces a $12 million hole in our 2009 operating budget. I will review the judge's decision over the weekend with the County Manager, County Solicitor and Budget Director, and I will discuss our legal and budgetary options on Monday."

Stay with KDKA for the latest details. 


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