PITTSBURGH -- Four months after Allegheny County Council passed a 10 percent tax on poured alcoholic drinks, the fee is bringing in more money than was expected.

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At the county courthouse on Friday, Councilman Charles McCullough proposed lowering the tax to 5 percent on July 1, then repealing it next year.

McCullough said the tax was put into effect to fund the county's $30 million subsidy of the Port Authority, but it has harmed mostly small, local businesses that have nothing to do with the public transit system.

"We have learned, through belt-tightening and stronger management, the Port Authority is not going to run an $80 million deficit this year, but in fact will turn a $10 million surplus," McCullough said.

But Allegheny County Executive Onorato said on Friday that there is no way a drink tax reduction or repeal will work. He said in order for it to work, property taxes would have to go up.

"Let's ask the voters whether they want $30 million from property tax or the drink tax to fund transit," he said.

The drink tax is destroying local bars and dividing members of county government, according to McCullough, who called it an unfair and unnecessary tax.

Earlier this week, council President Rich Fitzgerald said he does not think any changes should be considered after just one quarter.

"I think it's an issue if we collect something that's $10 million more ... than we thought," Councilman Vince Gastgeb said this week.

So far this year, the county has collected more than $8 million in taxes on poured drinks and rental cars. Treasurer John Weinstein said he expects that total to reach between $36 million and $40 million by the end of 2008.

When Onorato came out in support of the drink and rental taxes last year, he said it was the only available option to fund the Port Authority subsidy, other than raising property taxes.

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