Pa. Supreme Court next for drink tax

‘ ‘ ‘ The Commonwealth Court upheld the decision by a lower court to deny two proposed… ‘ ‘ ‘ The Commonwealth Court upheld the decision by a lower court to deny two proposed referenda to reduce the county drink tax from appearing on the ballot. ‘ ‘ ‘ The Friends Against Counterproductive Taxation, a group of bar and restaurant owners who oppose the county’s 10 percent drink tax, amassed about 45,000 signatures on a petition to have a referendum item appear on the Allegheny County election ballot Nov. 4. The referendum item proposed lowering the drink tax to half a percentage point. ‘ ‘ ‘ The lower court ruled that the referendum was not legal, because taxes cannot be removed through a referendum vote. ‘ ‘ ‘ ‘It was turned down because the Commonwealth Court was relying on language contained in the Home Rule Charter and Optional Plans Law that can be interpreted as saying only a legislative body can adjust the rate of taxation of a tax,’ said John Graf, chief secretary of FACT. ‘ ‘ ‘ FACT contests that the provision doesn’t apply to every type of taxation. ‘ ‘ ‘ ‘[The provision] only applies to taxation that is on the residents of the county and not a general tax that would apply to everybody that comes in. Unlike a property tax, where you’d have to own property,’ he said. ‘It’s a tax that’s generally on anybody that expends funds.’ ‘ ‘ ‘ Allegheny County Chief Executive Dan Onorato had appealed a referendum originally proposed by County Council, which called for a reduction in the drink tax but also proposed a hike in property taxes. The lower court’s decision that the council’s proposed referendum is also illegal was upheld by the Commonwealth Court today. ‘ ‘ ‘ ‘Today, Commonwealth Court confirmed what I had believed all along: FACT’s referendum is illegal,’ said Onorato in an issued statement. ‘ ‘ ‘ Onorato has said that he is against reducing the drink tax because the alternative would be raising property taxes. ‘ ‘ ‘ ‘Today’s ruling, which keeps FACT’s misleading question off the ballot, will allow me to hold the line on property taxes in 2009 as well ‘mdash; ensuring an eighth consecutive year without a property tax increase in Allegheny County,’ he said in the statement. ‘ ‘ ‘ Graf said that FACT’s fight is not yet over. ‘ ‘ ‘ ‘We’re going to appeal to the Pennsylvania Supreme Court,’ said Graf. ‘We felt that this was going to the Supreme Court all along. We’d rather be in the defending position than the appellate, but here we are.’ ‘ ‘ ‘ Onorato has not yet said whether or not he will continue to appeal the County Council referendum.