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Tax on rental cars dies on political vine

 

By John M.R. Bull, Post-Gazette Staff Writer
Copyright 2002 P.G. Publishing Co.
Article date: November 28, 2002
 

HARRISBURG - A proposed 3 percent tax on rental cars in Allegheny County lay in a legislative coma for two days.

Yesterday, it flat-lined.

The Legislature last night adjourned until January without taking action on the measure, which would have allowed the county to raise an estimated $3.5 million a year, which would be used to help finance a 500- to 600-room hotel next to Pittsburgh's David L. Lawrence Convention Center. City officials called the tax proposal crucial for the city's development efforts and expressed dismay at its death in the Legislature. Opponents, mostly car rental businesses, called the tax an onerous burden on local car renters.

The bill sat in the form of an amendment for two days this week waiting for the political will to include it in another bill.

That never materialized. For days, Republicans who control the Senate refused to be the first to move on the issue, while the Republican majority in the House indicated that it could be brought for a vote somehow.

Yesterday afternoon, House Republicans talked it over for the last time, found too much opposition in their own caucus, and declared the measure dead, although it can be brought up again when the Legislative reconvenes in January.

"This is critical for the financing of a convention center hotel and a convention center hotel is imperative for the success of the convention center," said state Sen. Jay Costa, D-Forest Hills, who hoped the measure would have been approved. "And that is a major cornerstone of developing that whole section of the city."

Another obstacle was that some Republican legislators weren't overjoyed about the idea of passing a bill to allow Allegheny County Council and county Chief Executive Jim Roddey to enact a tax on car rentals. And many lawmakers in the county refused to go along with such a bill without a formal request from Allegheny County Council.

Lawmakers did not want to risk being blamed in the future for helping facilitate a tax increase. They insisted on having the political cover of being formally requested to do so.

City and county officials lobbied for three days in Harrisburg, and desperately sought to get such a letter from County Council sent to the Legislature, or for lawmakers to enact the so-called enabling legislation anyway. Both efforts were in vain.

Allegheny County Council finally sent a letter that was received yesterday afternoon, but it arrived too late to make a difference.

"They didn't have their act together and the votes just weren't there," said Steve Miskin, spokesman for House Majority Leader John Perzel, R-Philadelphia.

Allegheny County Council President James Simms could not be reached last night for comment.

"Time just ran out on it, but maybe it can be reincarnated in January," said Robert Imperata, vice president of the Greater Pittsburgh Convention & Visitors Bureau. "It would give us the money for the convention center hotel and we need that hotel."

Many potential convention groups have told the bureau they want a large hotel connected to the new convention center before they will agree to come here.

Roddey couldn't be reached for comment. He and Mayor Tom Murphy had been strong supporters of the rental tax.

"We need the tax," said Murphy. "It would be the final piece we need to get everything done."
 

Staff writer Tom Barnes contributed to this report.
 

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