Pittsburgh council holds off on tuition tax vote

PITTSBURGH (AP) — Pittsburgh’s council has postponed a vote to impose a 1 percent, first-of-its-kind tax on students, giving city officials and the universities a week to cut a deal.
The tax has a narrow 5-4 majority on council. However, even those in favor say they prefer the financially strapped city find an alternative way to collect money from large, nonprofit, tax-exempt institutions, most notably the universities.
Mayor Luke Ravenstahl presented the tax last month as a way to fill a $15 million budget gap. The legality of the tax would most likely be determined by the courts.
City officials say the $1.6 million the non-profits agreed to pay Pittsburgh in 2010 does not cover the services the city provides.
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