Quote:
Originally Posted by austlar1
It would be nice if the Texas legislature gave local governments the right to set their own sales tax rates to raise revenue for transportation projects. I guess the fact that more than 2/3rd of Arizona's population lives in Maricopa County makes all the difference.
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Texas has set a maximum sales tax rate of 8.25%, yet only collects 6.25% itself. That leaves 2% for cities to collect and use as they wish. 1% every city can charge for its general revenues, and another 1% for special uses. CapMetro already collects 1% from Austin.
If Austin needs to collect more revenues to fund more programs, there are other taxes it can use; property, fees for permits, rental car and hotel room taxes, parking fees, electricity rates, telephone taxes, cable taxes, water and sewage rates - this list can go on and on. It's too easy to suggest raising sales taxes higher when other taxes and fees can be raised higher instead.
TXDOT could use an increase rate for fuels, the 20 cents per gallon for both gasoline and diesel doesn't raise enough to meet present needs. And USDOT could also raise its 18.4 cents per gallon for gasoline and 24.4 cents per gallon for diesel. I just wouldn't want both levels of government to raise their fuel taxes simultaneously - that would be a huge hit to the trucking industry. I suggest it's the fuel tax that needs to be increased, not the sales tax.