The General Assembly approved House Bill 1590, which would provide funding for highways and mass transit. Initially, lawmakers considered a plan proposed by House Democrats that would allow counties and municipalities state-wide to levy several local taxes to gradually boost their share of mass transit funding from 13 to 20 percent to be eligible for state money. Under that plan, counties were authorized to impose a room rental tax of up to 1.5 percent.
PTLA lobbied against this plan when the House considered the bill on June 25. House Bill 1590 was approved by a party-line vote of 102-101 (Democrats voting for it and Republicans against).
HB 1590 was then referred to the Senate Transportation Committee. On July 28, we contacted key senators and expressed opposition to the room tax language. That afternoon, both republican and democratic senators assured us the room tax provisions would be stricken from the bill.
The Senate Transportation Committee met the evening of June 29. HB 1590 was amended and approved. All of the local tax options, including the room tax provisions, were removed.
In addition, a provision calling for a 10% drink tax to fund mass transit in Allegheny County was added to the bill. PTLA, the PA Restaurant Association and other statewide hospitality organizations expressed opposition to this tax. Hospitality industry groups in Allegheny County, including the Greater Pittsburgh Hotel Association, are lobbying against the imposition of the drink tax.
The Senate and House then passed the Senate version of bill. Governor Rendell signed HB 1590 into law as Act No. 44 on July 18.
Updated July 2007
