Pittsburgh City Councilor Ricky Burgess introduced two bills on Tuesday that would put a 1% tax on the use of medical and higher-education institutions located in Pittsburgh.
It is not clear whether the taxes, which echo a similar initiative undertaken by former Mayor Luke Ravenstahl more than a decade ago, are legal.
The legislation, Burgess estimates, would generate about $50 million annually to go towards bridge and other critical infrastructure repair. Funds from this tax would go into a trust fund, which would be created under a separate bill Burgess also introduced on Tuesday.
"This legislation will create a partnership with educational and medical institutions to generate the dollars needed to repair and upgrade our aging infrastructure," Burgess said. "We must improve our infrastructure while maintaining our other priorities and commitments, including reimaging police, preventing violence and creating more affordable housing."
Burgess said UPMC does not pay taxes to the city, and if it did it would "be a significant amount of income for the city."
"What's the prognosis for a patient who is going to the hospital for a checkup if they're on a bridge that collapses?" he said. "I think that the parents of children would be willing to pay a little more to make sure that their child is safe on the roads and bridges, and that they can walk or bike, or scooter, catch a bus or drive across those bridges knowing that they are safe."
Burgess said he is willing to have a conversation with those who are concerned about the legislation.
"We can all agree that the education and medical institution have to partner with us and share their resources with us so that we can fix our city's infrastructure."
Mayor Ed Gainey's Press Secretary Maria Montaño said they learned of the legislation as it was being introduced. They are currently reviewing it with their solicitor "to understand the impact of it," she said.
"I can't speak to the legalities of it until we have a chance to look at it with our solicitors," she said.
Ravenstahl proposed a 1% "fair share tax" on college students in 2009, citing a rationale similar to Burgess'. The measure met with opposition from area universities, as well as from a panel of state-appointed financial overseers and city controller Michael Lamb, who raised concerns that the tax was not permitted under state law. The financial oversight panel ultimately stymied the effort.
On Tuesday, Lamb told WESA that had similar concerns about the new Burgess bill.
"I think we need to redefine our partnership with the city and its nonprofits," Lamb said, referring to entities like UPMC. "But I don't think it can legally be done, but there are others who think differently. That's a matter of debate."
Montaño said Gainey has an ongoing dialogue with UPMC leadership "on a number of issues." During his campaign, Gainey said he would sue UPMC to challenge its tax-exempt status, as previous mayors have attempted. However, Montaño said the city has not made any moves to file such a suit.
Chris Potter contributed to this report.
