Wednesday, April 23, 2008
By Jerome L. Sherman, Pittsburgh Post-Gazette
The parent company of Kennywood Park has agreed to pay $500,000 to West Mifflin Borough to cover a dispute over the borough's amusement tax, ending a long-running feud between the two entities.
In return, the borough will cap the tax at 50 cents per ticket, replacing the rate of 5 percent per ticket currently in place.
The agreement was reached Monday in the chambers of Allegheny County Judge Ronald Folino, who was handling a complaint Kennywood filed against the borough in 2005 over the tax. Borough Council President William Welsh and Peter McAneny, Kennywood Entertainment's president, attended nearly seven hours of negotiations.
"We were both ecstatic that this is over," Mr. Welsh said.
The $500,000 covers a portion of the taxes Kennywood did not collect from patrons in 2006 and 2007. By reinstating the 50-cent rate, West Mifflin would be returning to its pre-2004 tax level.
The fixed rate will bring the borough about $500,000 to $600,000 per year, Mr. Welsh said.
Kennywood also has agreed to pay for an additional two years even if the state Legislature repeals all amusement taxes. Sen. Bob Regola, R-Hempfield, has proposed such a bill.
