PITTSBURGH -- The Allegheny County Council voted Tuesday night to put the drink tax to a referendum in November.

The County Council voted 10-5 on Tuesday to put a referendum on the November ballot, asking residents if they prefer the drink tax or a property tax in crease.

WTAE Channel 4's Jon Greiner Reports: Drink Tax Referenda Could Confuse Voters

Allegheny County's 10 percent tax on poured alcoholic drinks was established to fund the county's annual subsidy of mass transit. Tuesday's decision puts to the voters the question of whether to keep the drink tax or increase property taxes.

"As far as the will of the people, I know the folks I represent. A lot of the people I talk to, they understand this and nobody wants their property tax to go up," said Councilwoman Joan Cleary, D-District 6.

"In all the people I'm talking to, almost everyone says, 'Please do not do anything to raise our property taxes.' That's what this is about," said Councilman John DeFazio, an at-large Democratic member.

WTAE Channel 4's Jon Greiner reported that Republicans felt the referendum represents a wrong way of governing.

"How are we going to look when this thing fails? And, I'll predict that this thing is going to go down in flames faster than anything we've ever brought out of here," said Councilman Chuck McCullough, an at-large Republican member. "Who in their right mind is going to vote for this?"

Others voiced concern over the confusion over the referendum because bar and restaurant owners are trying to put their own referendum on the ballot seeking a reduction of the drink tax to one half of 1 percent.

"I hope they vote no because don't vote to raise your property taxes. You have to vote no so you don't raise your property taxes. And, if we're that confused up here amongst the 15 of us (on council), what's going to happen when it gets out to the public?" said Councilman Vince Gastgeb, D-District 5.

"Hopefully, by November, the public will understand what took place here and they'll take democracy in their hands and they'll vote to reduce this onerous tax and make sure that, in the future, one industry doesn’t get picked on to fund what everyone uses," said Kevin Joyce, a Pittsburgh restaurateur.

The council also debated a possible amendment to drop the drink tax from 10 percent to 5 percent, but that proposal failed.

County Chief Executive Dan Onorato said any referendum presented to voters must keep the budget balanced -- so if the drink tax is eliminated, residents would see an ensuing hike in property taxes to fill the hole.

One Democratic council member said he voted to put issue on ballot to force Onorato to make a hard decision.

"I want to see him sign this because this is a real conflict of what he has been discussing since January: How he refused to raise property taxes. I'm calling him on it, let's see it, let's see if he's going to do it," said Councilman Nick Futules, D-District 7.

Drink Tax Established To Support Transit

The drink tax was passed to fund the county's $30 million subsidy of the Port Authority, which even drink tax opponents agreed needs to be fulfilled.

"Public transportation in this city needs a lot of support and it needs a lot of help especially now with gas being the price it is," said Matt Wribican, who supports Port Authority funding.

Onorato has said the drink tax and a higher property tax are the only options approved by lawmakers in Harrisburg, and he is not in favor of raising property taxes. Opponents have labeled such talk as scare tactics.

"This is an end around the voice of the people," said John Graf, owner of the Priory Hospitality Group, at the council meeting. "Its entire purpose is to confuse, misdirect and thwart. This is no way to run government."

Originally, Onorato estimated the drink tax would raise $28 million -- but Treasurer John Weinstein said it has already brought in $22 million in the first six months and is on pace to generate $44 million by the end of 2008. Any extra money would go into the county's general fund.

Drink Tax Opponents Gather Signatures

Before the council met, opponents gathered outside the courthouse to continue pushing their anti-drink tax petition.

Friends Against Counterproductive Taxation (FACT), led by local restaurant and bar owners, wants to put a different referendum on the ballot -- one that asks if the drink tax should be lowered. They've been trying to gather 50,000 signatures to support it.

Graf, who is a FACT member, said whatever the county council chooses to do won't have any effect on his group's efforts.

"We're just going to plow along, continue to get our signatures, turn them in next Tuesday and put our referendum on the ballot," said Graf.

FACT's petition does not seek to entirely get rid of the drink tax -- rather to reduce it to about 1 percent, which is believed to still raise about $2.5 million for the county.

Onorato said the group's proposed referendum would be illegal because it doesn't offer a way to account for lost revenue from the drink tax, while the referendum that the council is debating gives voters a choice between drink tax or property tax.

The bar and restaurant owners maintain that there's nothing illegal about their petition.

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