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First taste of drink tax is sour
Four restaurant owners say the levy, intended to support transit, would hurt business
Wednesday, August 22, 2007

The first comments in Allegheny County's process of imposing a drink tax to fund public transit were unanimously opposed.

They came by four restaurant owners who said they will see a reduction in business as soon as that tax is imposed.

The measure, passed in July by the state Legislature as part of the transportation bill, gives Allegheny County the ability to impose a tax of up to 10 percent on alcoholic beverages served in bars and restaurants.

County Council yesterday took the legislation that would enable the county to impose a tax and sent it to its committee on budgets and finance.

County Councilman Bill Robinson, D-Hill District, said the legislation does not contain any of the specifics on how much tax would be charged if one is imposed.

"We have concerns this could be a counterproductive tax for our city," said Sean Casey, owner of Church Brew Works in Lawrenceville.

He said Pittsburgh has the unique sort of customer base in which a 25-cent increase on soda receives complaints.

Kevin Joyce, owner of The Carlton and the president of the Pennsylvania Restaurant Association, who was out front in opposing the now failed restaurant smoking ban, was back at the podium again, this time asking council not to impose the tax.

He said the tax is not just to fund the gap in transit money. Instead, he said, it will be a $25 million to $30 million tax increase as the county's share of transit funding is shifted to the new tax.

"To put all of the burden of public transportation on an industry that has nothing to do with public transportation makes no sense," he said.



First published at PG NOW on August 21, 2007 at 11:03 pm
Ann Belser can be reached at abelser@post-gazette.com or 412-263-1699.
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