Allegheny County Executive Vetoes Bill That Would Impose Fees on Nonprofits

Allegheny County executive Dan Onorato has vetoed a bill that would impose a fee on local nonprofits, saying the bill the county council passed is illegal and exposes the county to a lawsuit it would have little chance of winning, the Pittsburgh Tribune-Review reports.
The bill would have allowed the county to collect fees from hospitals, universities, and other nonprofits based on the amount of building space they own to pay for essential services such as public safety and public works. (Churches, K-12 schools, foodbanks, shelters, and certain other groups would be exempted from the fee.) According to Onorato, the fee would violate the state's Home Rule Charter and Charter Law by expanding the county's taxing powers. "While the bill ostensibly imposes a 'fee' for general county services," Onorato said in a letter to council, "it appears to be an attempt to circumvent commonwealth law and impose real estate taxes on otherwise exempt real property in a non-uniform matter."
Nonprofits, which are exempt from paying real estate and city payroll preparation taxes, own 40 percent of property within the city limits, said Joanna Doven, a spokeswoman for Pittsburgh mayor Luke Ravenstahl. The real estate tax is the city's largest revenue generator, followed by its earned income tax and the payroll prep tax.
According to County Council president Rich Fitzgerald (D-Squirrel Hill), the bill's sponsor, Charles McCullough (R-Upper St. Clair), a former county solicitor, told the council the legislation was legal. "Maybe we should have done more research," Fitzgerald said, noting that he's not sure whether his colleagues will vote to override Onorato's veto.
In the meantime, several Allegheny County nonprofit leaders have praised Onorato's veto. "We are very pleased that the chief executive has realized how damaging this piece of legislation could be to the nonprofit community," said Amy Hart, chairwoman of the advisory committee of the Greater Pittsburgh Nonprofit Partnership. "Every dollar that they charge a nonprofit with those types of fees and taxes comes directly from funds that are used to serve people. So this legislation would hurt the county's most vulnerable citizens."
Reference: Zlatos, Bill. “Allegheny County Executive Vetoes Bill for Fee on Nonprofits.” Pittsburgh Tribune-Review 11/07/09