State Wants To Lower Pittsburgh Parking Tax, But City Says No

PITTSBURGH -- Going against the state, Pittsburgh City Council voted Tuesday to freeze the city's parking tax at the current rate of 45 percent and stop it from being lowered any further.

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Watch Bob Mayo's Report

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The parking tax has already dropped 5 percent this year, and the state requires another reduction of 5 percent next year.

WTAE Channel 4's Bob Mayo reported that the council vote may set off a fight between the city and the state over Pittsburgh's finances.

"It violates the spirit and letter of the law. It's in complete violation of the state law. This was negotiated in a bi-partisan fashion," said state Sen. Jane Orie, R-McCandless.

City Council argues that there is more demand for parking than there are spaces available, and council members say the savings will not be passed on to customers if the tax rate goes down.

Councilman Jim Motznik, who introduced the bill to freeze the tax, said it gives the city a chance to use money from the parking tax for debt and pension problems.

"I don't feel that it's illegal," said Motznik. "We here on Council control old taxes, new taxes, what tax rates are going to be."

Orie, the Senate Majority Whip, said she will urge the city's financial oversight board to send Council a message.

"It's irresponsible for them to have passed this. I believe there is no support in the legislature to do this," said Orie.

The financial oversight board can block the city from getting all of its state funding and all money from new taxes that were approved by the state several years ago.

"There are ramifications for violating the law, and they could lose state monies," said Orie. "That alerts them -- you are taking an action in violation. This is what is at risk."

Mayor Luke Ravenstahl's office said Ravenstahl will go to Harrisburg next week and talk with state lawmakers before he takes a position on the parking tax issue.

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