A privilege tax on claw machines, $50K for youth climate change engagement and improving East Carson St.

Top Agenda Items

• Proposed tax on amusement devices advances to public hearing
• A $50K Bloomberg grant puts climate problem-solving in young people’s hands
• East Carson St. business owners ask to pay taxes for neighborhood improvements

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Proposed tax on amusement devices advances to public hearing 🔗

When it comes to boosting Pittsburgh’s revenue, city council is taking its chances.

A proposed privilege tax on amusement devices could bring in between $2 million to $3 million a year. 

The ordinance would mandate licenses and annual tax payments for amusement devices such as poker machines, claw machines and jukeboxes. It would apply to all business types with Rivers Casino being exempt. 

“We have big ticket items that we need to finance,” Council Member Anthony Coghill of Beechview said during the May 27 committee meeting. “Last year, we ran a deficit. First quarter projections for this year tend to point to us running a deficit again this year.” Three years of deficits would trigger the state control over Pittsburgh’s finances under Act 47.

The state oversaw Pittsburgh’s finances from Dec. 2003 to Feb. 2018 under Act 47.

Devices would fall into three classes, categorized by function, and taxed annually per device. The taxes range from $1,000 (e.g., poker machines) to $100 (claw machines) to $10 (darts). 

Coghill and Council Member Bob Charland of the South Side pointed out the proliferation of gambling machines, not just in bars but in places like gas stations, too. 

“This is not like a night out at the casino. This really is a tax on an addiction,” said Charland.

A public hearing on the matter has not been scheduled.

A $50K Bloomberg grant puts climate problem-solving in young people’s hands 🔗

Later this summer, Pittsburgh’s youth will have the opportunity to help develop local climate solutions.

Council gave preliminary approval at its May 27 committee meeting to accept a $50,000 grant from Bloomberg Philanthropies for the Youth Climate Action Fund. More than 300,000 young people from 15-24 years old from 300 cities around the world participate in the program.

Andrew Hayhurst, senior manager of innovation for the Department of Innovation and Performance, said the city will break up the money into microgrants for up to $5,000.

According to Senior Manager of Digital Services Chris Belasco, the city will partner with local organizations that already work with youth. Organizations include, among others, 412 Food Rescue, Assemble, and Grounded Strategies.

Council Member Deb Gross of Highland Park said, “The public has suggested that we find more things for people in this age range to do and to make the project meaningful, not just lip service.”

“If we can do this quickly, we can also get additional funding for Bloomberg,” Hayhurst said. “They may double the amount that we get.” 

A selection committee will decide which projects to move forward with and provide additional funding toward.

East Carson St. business owners ask to pay taxes for neighborhood improvements 🔗

Businesses on the South Side have asked to be charged higher taxes in exchange for dedicated neighborhood improvements.

East Carson St. property and business owners requested the creation of a Neighborhood Improvement District (NID) for the South Side, which needs to be authorized by council. 

The NID would levy additional property tax on businesses in a designated area to pay for promoting the area’s economic and general welfare. (Residential dwellings and nonprofit organizations are exempt from the extra tax.) The legislative package for the tax includes an estimate of $500,000 in revenue for the first year. 

The money would be used for maintenance and improvements for public spaces, filling storefronts and branding development, among others.

The proposed area would run along East Carson St. from 9^th St. to just past Hot Metal St. It also includes some businesses on streets parallel to East Carson. It is approximately the same area as the historic district, one of the largest Victorian Main Streets in the United States.

Council Member Bob Charland of the South Side said during the May 27 committee meeting that existing enhancement efforts have brought storefront vacancies from 24% to 16.5% in the past year. 

The NID would go into effect Jan. 1, 2027, and remain for five years unless otherwise dissolved.

 A public hearing on the proposal has not yet been scheduled.