APNewsBreak: Pittsburgh mayor, universities to announce deal avoiding need for tuition tax

AP: Pittsburgh mayor, universities reach tax deal

PITTSBURGH — Pittsburgh officials tell The Associated Press that Mayor Luke Ravenstahl has reached a deal with university leaders that averts the need to impose a first-of-its-kind tax on college tuition.

Three city officials say a deal has been reached. They spoke on condition of anonymity because the deal has not been announced. Ravenstahl and university leaders will announce the details on Monday.

City Council was to vote Monday on the 1 percent tax. Ravenstahl wanted the tax to generate about $16 million a year.

Nonprofits are exempt from most taxes, and Ravenstahl is searching for ways to get them to help the city’s budget.