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Suit seeks to repeal Allegheny drink tax

PITTSBURGH — A group of Allegheny County bar and restaurant owners amended its lawsuit that seeks to repeal the county's new 10 percent tax on alcoholic drinks.

Friends Against Counterproductive Taxation and various business owners are seeking class-action status on behalf of all licensed liquor establishments in the county.

County Executive Dan Onorato championed the tax, along with a $2-per-day car rental tax, to fund the county's transit agency at about $30 million a year. Projections based on the taxes collected since they went into effect Jan. 1 shows the county might collect up to $40 million annually.

The group said the tax is based on an illegal state law, among other irregularities.

Onorato said the only alternative is a property tax increase.

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