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Transit sales tax for MD/DC/VA

Started by Scrabbleship, July 02, 2010, 10:00:26 AM

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Scrabbleship

While I was having to come up with the reasons in why the MBTA isn't utopian yesterday, I came across the "forward funding" setup that the MBTA uses for dedicated funding. In short,  the MBTA gets half of its budget funding from a 20% share of Massachusetts' 5% sales tax and additional amounts (about another 10% for FY2008) from assessments on the cities and towns it serves. As much as this can be unstable, there is a minimum amount of money that is gauranteed to the MBTA if sales really go down though it isn't as generous as when Masachusetts did full reimbursements for losses. This got me thinking about how such a thing could work to benefit not just WMATA, but agencies throughout Maryland and Virginia.

First, the assessments would be a hard thing to get away with in the DC area as in Massachusetts most counties exist only as historical reminders (and for census and media market purposes); the strong-county system of Maryland and the county/independent city system of Virginia clash with this. However, I think dedicating a percentage of sales tax revenues to transit on the statewide levels in both Maryland and Virginia would be a wise move because just about all parties win. Besides the obvious WMATA, it'd also give dedicated streams to GRTC, HRT, MTA, and a bevy of smaller systems which could grow up and out further. It also could provide seed money to newer systems to come into existence.

As for DC, I'm amazed that they've done things ranging from charging for shopping bags to taxing soda but they've never explored a transit sales tax. Given how some of their taxes are out there (10% for meals), I think some diversion would take place and it'd have a tangible difference on the community unlike how some taxes have become boondoggles.

I think this can work. Only problem is who do I propose it to?

Tritransit Area

It won't be a good idea during a recession.  That sales tax revenue PLUMMETED, and put a lot of agencies that relied on that funding into big financial trouble.
My favorite buses:
1989 SEPTA AN440: 19 years in service
1989 NJT Metro Bs: 21 years in service
1990 WMATA 93/9400 Flxes: 20 years in service!
1990-92 Ride-On Orion Is: 17-18 years in service!

Tell me again I have no taste in buses...

Scrabbleship

Quote from: Tritransit Area on July 02, 2010, 11:33:47 PM
It won't be a good idea during a recession.  That sales tax revenue PLUMMETED, and put a lot of agencies that relied on that funding into big financial trouble.

I know this, but some sales tax revenue is better than no sales tax revenue. Given WMATA's precarious position, I'd take anything I could get.