Primary New Funding Source
INCREASED SALES TAX ( One Cent for Mobility )
We have been good stewards of our current dedicated transit sales tax ( approved 20 years ago ) to fund the local portion of Blue Line LRT construction , bus fleet and service expansion , and related operation . There hasn ’ t been a change to the transit sales tax since its inception and an increase has the potential to generate significant revenue .
Sales taxes are generally considered a regressive form of taxation ( affecting the lower income brackets disproportionately when compared to upper income brackets and measures should be taken to reduce the regressive impact to vulnerable populations by eliminating the tax on groceries and medications ( as currently ) and considering the feasibility of a transit fare reduction program .
Rather than using the sales tax exclusively for transit ( as has been done in the past ) the Task Force suggested a universal application of the revenue to support all portions of the mobility infrastructure program (“ Once Cent for Mobility ”).
Approving a sales tax increase requires the State enabling legislative authority , County Commission approval and a voter referendum .
Potential Sales Tax Revenues
Rate Increase Annual Revenue * 30-Year Revenue Example Tax Increase ** 0.50 % $ 110 Mil $ 3.3 Billion $ 90 1.00 % $ 220 Mil $ 6.6 Billion $ 180
* Actual influenced by volume and value of total transactions ** Assuming a household income of $ 60,000 with 30 % ($ 18,000 ) spent on taxable goods and services and a current sales tax 7.25 % * $ 18,000 = ~$ 1,305 annually
64 HOW | The Funding Strategy