East Deer stands to generate substantial revenue from a proposed amusement tax that is expected to be approved in March.
Commissioners voted last week to advertise the ordinance, which calls for a 5% tax on admission fees to large events hosted in the township. The board is scheduled to vote during its meeting March 14.
Mainly, they are eyeing concerts and other outdoor festivities at the new pavilion under construction at Pittsburgh Brewing Co. which could draw upward of 7,000 people.
“There’s a potential increase in cost for the township and a strain on resources with large- volume events,” Commissioner Tony Taliani said.
He said the township could be tasked with paying for extra personnel for traffic control, and there will be significant wear and tear on local roads.
“When you’re having events with thousands of people, municipal resources become stretched,” he said.
If approved, the tax would go into effect within 90 days.
That would be just in time for the brewery’s summer concert series, which kicks off June 29 with a Jimmy Buffett tribute band.
Taliani said the ordinance was shared with brewery officials. The township wasn’t trying to surprise them with anything, he said.
Brewery spokeswoman Katie Henningsen did not immediately respond to requests for comment Monday.
Township Solicitor Craig Alexander researched amusement tax ordinances in other municipalities. Locally, Frazer and the city of Pittsburgh have similar taxes.
Fees usually are tacked onto the ticket price, and the host is responsible for paying the municipality within 10 days.
Alexander said previously that the ordinance was tailored to East Deer and has elements drawn from those in Erie and West Mifflin, where Kennywood is located.
Taliani said his goal is for the township to recoup any expenses related to large events, adding it’s possible residents could benefit in the long run.
“The plan is that if it’s that successful to tie it to possible real estate tax cuts at some point,” he said.
