PITTSBURGH -- A public hearing will be held Tuesday night in the South Side to help state officials determine if the city qualifies as a distressed community. Under the proposal, the city would be declared financially distressed. This would give it more power to impose taxes.

BUDGET CRISIS What Is Act 47? Should State Bail Out City's Budget Problems? Share Your Thoughts On Budget Issues Pittsburgh Act 47 Consultative Report Story Archive Of Budget Crisis

City council and Mayor Tom Murphy have to do a lot of persuading in order to get the city of Pittsburgh a distressed status.

Murphy will argue the city meets at least one of the 11 criteria outlined in Act 47 for that designation. One, is the city must maintain a deficit over a 3-year period with a deficit of at least 1 percent or more in each of the previous fiscal years.

City officials have used the one-time revenues such as the sale of city water and sewer authority to balance the budget in recent years. Pittsburgh faces a projected $42 million budget deficit next year.

Murphy is hoping state lawmakers will approve raising the $10 occupational privilege to $52 and creating a 45 percent payroll tax. Distressed status will allow city officials to levy a commuter tax on suburbanites.

The meeting will be held at 7 p.m. at the IBEW Hall at the corner of East Carson and Hot Metal streets. Both city and suburban residents are invited to attend.

While the mayor seeks a distressed status, some other Pittsburgh leaders are proposing local tax increases to ease the city's budget troubles. But it's an idea that's not sitting too well with many residents.

These are the hikes being considered:

Amusement tax would be increased from 5 to 10 percent.

Real estate transfer tax would rise to 1.5 percent.

Parking tax would jump to 50 percent.

Property taxes would rise from 10.8 to 15 mils.

Residents said the new taxes would hurt a lot more than they would help.

Realtor Robert Epps said, "There may be a quick increase in revenue, but all we'll be doing is changing seats on the Titanic."

It has yet to be decided if the measure will be taken to city council for further discussion.