With the backing of state Sen. Wayne Fontana, Allegheny County Council members believe they have taken a step toward implementing a service fee on tax-exempt properties.

Mr. Fontana, D-Brookline, who was among a group of legislators from Allegheny County who met with council members yesterday, has introduced legislation to enable municipalities to levy an "essential services" fee on certain tax-exempt properties.

But although he is the sponsor, Mr. Fontana expressed doubts about the prospects of passage. "Realistically, can [the essential services fee on nonprofits] pass on the state level?" he asked.

Council is considering its own similar measure, sponsored by Councilman Chuck McCullough, R-Upper St. Clair.

It would charge nonprofit entities in the county $50 plus $150 for every 1,000 square feet of structures on a parcel that is classified tax-exempt.

"This isn't an issue of trying to punish nonprofit organizations," said Mr. McCullough. "What we're talking about here is a fee. The idea is to recoup [the cost of] some of the services offered by the county to nonprofits by way of a fee."

Mr. Fontana's bill would allow the county to levy a fee of up to $100 per 1,000 square feet, with the first 5,000 square feet exempt, on nonprofit entities that own tax-exempt property.

In an hourlong meeting at the County Courthouse, Mr. Fontana described his bill -- an amendment of the Purely Public Charities Act of 1997 -- as "a starting point."

But questions of practicality arose in the meeting, which Council President Rich Fitzgerald said was crucial in "starting a dialogue" to push the issue through the Legislature.

"I just don't know how easy it's going to be to go back and open up [the Purely Public Charities Act] and do this statewide," said state Rep. David Levdansky, D-Forward.

Mr. Levdansky blamed the base year property assessment system implemented by county Chief Executive Dan Onorato as the source of the county's fiscal woes. Under that system, property values are frozen at 2002 levels, stunting revenue growth.

Mr. Levdansky also asked what services the county provides to nonprofits to justify the proposed fees.

County Councilman Mike Finnerty said the fees were a matter of "fairness and equity."

"I find it extremely hard to look at [University of Pittsburgh Medical Center and Highmark Blue Cross Blue Shield] as nonprofit organizations. These organizations are making huge profits and they are buying land all over the county," said Mr. Finnerty, D-Scott. "Every time they buy land, that land goes off our tax rolls."

A fee on some nonprofit entities could yield the county $7 million to $14 million in revenue, said Mr. Finnerty.

Council's efforts to tap the nonprofit sector started during last year's budget deliberations, when the county faced a $30 million budget shortfall.

State Rep. Chelsa Wagner, D-Beechview, warned others at yesterday's meeting to spell out the reason for the proposed fees.

"It is important that you bring a specific request [to the Legislature] on why this fee is important. Is this directed at repealing the drink and car rental taxes?" she asked.

"Theoretically, it could be," said Mr. McCullough.

Mr. Fitzgerald, D-Squirrel Hill, and members John DeFazio, D-Shaler, Jim Burn, D-Millvale, Bob Macey, D-West Mifflin, and Mr. Finnerty went to Harrisburg in November to talk to legislators about a possible tax on nonprofit institutions.

At the time, Mr. Onorato predicted their talks with state legislators would not yield much, saying, "History shows us that Harrisburg is not going to move on that issue."

Yesterday, Kevin Evanto, a spokesman for Mr. Onorato, said "he hasn't had an opportunity to see the legislation. But he is looking forward to reviewing it and sitting down with the legislators and the nonprofit organizations."