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Drink Tax May Drive Some Borderline Bars Across Allegheny County Lines

POSTED: 8:46 am EST January 3, 2008
UPDATED: 11:49 am EST January 3, 2008

As the reality of Allegheny County's new drink tax settles in, some business owners may start thinking about relocating outside county lines.

One of those establishments is Bella Luna, a bar and restaurant on Route 22 in Monroeville, just barely across the dividing line with Murrysville, Westmoreland County.

"If you're coming to Bella Luna, you're in Allegheny County. If you're leaving, you're in Westmoreland. It splits down our driveway," general manager Scott Levin said.

The 10 percent tax went into effect on Tuesday and applies to any poured alcoholic drink served in bars, restaurants and entertainment venues in Allegheny County.

Some customers, like Gary Kozain, come from across the border in Harrison City and are loyal. But not everyone is.

"If you could stay back there and save 10 percent, why not do that?" Kozain said.

Drive just a few minutes down Route 22 and you have your choice of drink tax-free establishments, like Rick's Sports Bar, where employees expect to serve more customers soon.

"That's a lot of money," Maggie Borbonus, of Rick's, said about the new tax. "Say, a $3 bottle of beer -- they're paying what, 30 more cents?"

WTAE Channel 4 Action News calculated the numbers on a night at each of the two bars.

The tab for 15 bottles of a typical domestic light beer for you and your friends is $45 at Rick's and $49.50 at Bella Luna.

Business owners notice those kinds of numbers, and Levin said that when Bella Luna's lease is up, so is its time in Allegheny County.

"We'll move across the street, absolutely," he said.

Such a move would mean a loss of payroll and business tax for Allegheny County, along with the lost drink tax from that establishment.

Though restaurant and bar owners continue to fight the new drink tax in court, Levin said moving his operation will allow him to hang onto customers.


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