Downtown Pittsburgh Investment Zone Estimates
Allegheny Conference on Community Development
Economic Strategy
The Allegheny Conference on Community Development is a 501(c)(3) organization focused on economic and community development in the Pittsburgh region. It works to drive regional prosperity and competitiveness by attracting investment and fostering business environment improvements. Collaborating with the Conference connects stakeholders with a network of businesses and leaders aiming to enhance Pittsburgh's livability and economic status. The organization strategizes on utilizing public and private resources effectively for regional growth. Engagement with the Conference supports efforts to improve neighborhoods and economic development across diverse communities.
Downtown areas have faced difficulties in the post-COVID era, marked by increased vacancy rates and the departure of people and companies. An investment zone emerges as a strategic solution to address these challenges. For such a zone to be effective, it must be backed by various revenue streams.
Our Approach
On behalf of the Allegheny Conference on Community Development, Fourth Economy analyzed the potential for revenue generation that could be captured or diverted through the establishment of a Downtown Pittsburgh Investment Zone.
We calculated the potential revenue from the following sources:
Sales Tax
Hotel Occupancy Tax
Alcoholic Beverage Tax
Sales/Use Tax Paid for the Purchase of Construction Materials
Rideshare Tax
Employer Withholding
Corporate Net Income Tax, Capital Stock and Franchise Tax, Bank Shares Tax, etc.
Amusement Tax
Marijuana Tax
Local Services Tax Withheld from Its Employees by a Qualified Business for Work Performed in the Zone
This analysis was conducted across four geographies:
Downtown
North Shore
Pittsburgh
Allegheny County
The Results
The Fourth Economy Team developed an Excel model incorporating the ten previously mentioned revenue streams, utilizing various data sources, assumptions, and methodologies. This financial model is designed to assist in estimating the appropriate tax percentages for existing taxes or the creation of new ones.
Location
Allegheny County, PA