HARRISBURG, Pa. -– The Sports & Exhibition Authority (SEA) of Pittsburgh and Allegheny County is vigorously lobbying state legislators here to pass a bill authorizing the Allegheny County Council to adopt a 3% car rental tax. The plan calls for $2 million in car-rental tax revenue to be funneled to the SEA-run David L. Lawrence Convention Center to offset a projected operating deficit in 2003.
Representatives of the car rental industry met with legislators last week to express their opposition to the tax proposal. They have argued that placing the tax burden solely on car rental consumers is unfair, especially since the deficit is the result of the SEA’s own lapses in fiscal management, said Bob Muhs, vice president of governmental affairs for Avis.
The industry has also pointed out that if the county succeeds in attracting more conventions, other business segments stand to gain more than local car rental operators. As such, vendors directly servicing the convention center are more logical targets for assuming, or at least sharing, the tax burden.
In opposing the tax, the industry has also stressed that a car rental tax would place a heavy burden on local residents, not just visitors from out of town as some tax proponents have suggested.
Plans for the tax first surfaced in the Legislature in June, as lawmakers worked late into the night to finalize the state's 2002-03 budget. But they ultimately shelved the 11th-hour tax proposal because the budget deadline didn't afford enough time for debate on the matter.
In addition to the SEA, supporters of the car rental tax have included Allegheny County Executive Jim Roddey and Pittsburgh Mayor Tom Murphy. The tax proposal calls for $2 million to go to the convention center and $1.3 million to go to a hotel project adjacent to the convention center.
The plan also originally called for the remaining tax revenue to be funneled to the Pittsburgh Film Office. But some supporters of the tax have attempted to distance the project from that agency since its director, Dawn Keezer, became part of a high-profile investigation by the Los Angeles District Attorney's Office. The D.A.'s office is investigating whether Keezer collaborated with a Hollywood colleague to misappropriate public funds. Keezer has denied the allegations.
Meanwhile, representatives of the car rental industry are hopeful that state lawmakers will be more willing to hear their arguments than Allegheny County politicians were during a series of meetings in October. "Those of us representing the industry walked out of the meeting extremely frustrated," said Muhs, describing one such conference with city and county officials.
