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Drink, property taxes may be on Nov. referendum
Council passes measure by wide margin; restaurateurs want second initiative included
Wednesday, July 30, 2008

Allegheny County Council yesterday approved a referendum question asking voters if they want to reduce the 10 percent drink tax, but only in exchange for a property tax increase.

Critics said the question was phrased to ensure its defeat. It reads: "Shall the county enact an ordinance to increase real estate taxes in order to repeal the alcoholic drink tax?"

Council approved the question, which could be one of two referenda on the drink tax in November, in a 10-5 vote.

Councilman Jim Ellenbogen, D-Banksville, joined the Republican caucus -- Vince Gastgeb, R-Bethel Park, Chuck McCullough, R-Upper St. Clair, Jan Rea, R-McCandless, and Matt Drozd, R-Ross -- in opposing the measure pushed through by the majority Democrats.

"This gives voters a choice of which revenue source they would like us to use [to fund mass transit]," said council President Rich Fitzgerald, who sponsored legislation creating the referendum question.

To take effect, the measure must be signed by county Chief Executive Dan Onorato before the Aug. 5 deadline, when ballot questions for November must be received by the county elections office.

Council Democrats, who approved the drink tax and a $2-a-day tax on car rentals in December to fund the county's $30 million subsidy of the Port Authority, pushed the question to counter another referendum proposed by the group Friends Against Counterproductive Taxation.

The group, made up of restaurateurs and bar owners opposed to the drink tax, is challenging the levy in court and started a petition drive in June to ask voters to reduce the levy from 10 percent to 0.5 percent.

Mr. Onorato has said a repeal or reduction of the drink tax would force him to raise property taxes. Council and county officials have not yet calculated how much of an increase in property taxes would be necessary to offset a reduction or repeal of the drink tax.

Mr. Onorato also has said in recent weeks that even though he supports council's measure to counter the Friends Against Counterproductive Taxation referendum, he is ultimately opposed to its premise because it could force him to increase property taxes.

He said he believes the referendum question proposed by FACT is illegal because repeal or reduction of the drink tax would throw the county's budget out of balance. He says he has not ruled out challenging FACT's referendum in court.

Kevin Joyce, proprietor of The Carlton restaurant and a principal member of FACT, said the group plans to submit more than the 23,006 signatures required for a ballot initiative to the county elections office next week.

"[Mr. Onorato] has pledged to fight our referendum question in court, but we think our question can withstand a legal challenge," he said.

Mr. Fitzgerald said he hoped property owners would vote "no" on the council question.

Mr. Gastgeb and Mr. McCullough argued that the question did not offer voters a real choice.

"This question will drive voters to vote 'no'," Mr. Gastgeb said.

Karamagi Rujumba can be reached at krujumba@post-gazette.com or 412-263-1719.
First published on July 30, 2008 at 12:00 am
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