Penn. Residents Question Car Rental Tax Spending, Sue County

Friends Against Counterproductive Taxation (FACT), a hospitality group in Allegheny County, Penn., are upset on how extra funds from a $2 per day tax on car rentals are being spent in the county, according to the Pittsburgh Business Times.

Additional money from the car rental tax, along with funds from a 10 percent drink tax, are supposed to go towards the region’s Port Authority transit system. However, FACT, along with county councilman Chuck McCullough, filed a lawsuit stating the funds were being spent on other priorities, after Allegheny County Chief Executive Dan Onorato said he planned to use the extra revenue on infrastructure projects.

State Act 44, which enacted the car rental and drink tax, was implemented in December 2007. Through the act, the county planned to generate $4 million from the car rental tax.

The group appeared before Judge Judith Olson in the Allegheny County Court of Common Pleas on Dec. 29. While the hearing ended with no final decision, FACT members are hopeful that the judge will make a quick ruling in their favor.

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