State tax officials have sided with Pittsburgh Controller Michael Lamb in a dispute with a Downtown property owner over taxes due on a June 3 building transfer, resulting in $1.66 million in revenue due to the city, state and Pittsburgh Public Schools, the controller announced yesterday.

Mr. Lamb successfully argued that Stanwix Lender Associates should have paid deed transfer taxes when it took control of the former Westinghouse Building, Downtown. That transfer appeared on the books as a mortgage purchase followed by a deed transfer in lieu of foreclosure, and Stanwix Lender Associates took the position that no deed transfer tax was due.

The Department of Revenue last week made its ruling that the mortgage action was, in effect, a sale, and so the tax is due -- $828,000 to the city, $414,000 to the schools and $414,000 to the state, plus $7,114 in interest and fees.