Update on the UTA / Transportation bill:
https://www.deseretnews.com/article/9000...l-would-hike-state-sales-tax-to-485.html
Revised transportation task force bill would hike state sales tax to 4.85%
Quote:
A sweeping transportation bill that overhauls how UTA is managed now would raise the state sales tax by 0.15 percent starting in 2019 to raise $80 million annually for mass transit projects.
The latest version of SB136, sponsored by Sen. Wayne Harper, R-Taylorsville, the co-chairman of the Legislature's Transportation Governance and Funding Task Force, is expected to be heard in the Senate Monday.
"It really needs to pass because it creates the form and the structure for how the state deals with transportation over the next 40 years. It’s transformational," Harper said Friday.
Harper said he's "externally optimistic" the bill can pass but said there may be changes.
His House sponsor and tax force co-chairman, Rep. Mike Schultz, R-Hooper, said the bill "has been a moving target. Let's see what passes the Senate and then we can have a conversation about it in the House."
Besides increasing the sales tax statewide for a new transit fund administered by the Utah Transportation Commission, the revised bill also would give every county the option of imposing a quarter-cent local option sales tax for transportation.
Counties that already have mass transit would have three years to go to voters for approval of the entire 1.05 percent local option sales tax before they could seek the extra quarter-cent.
A provision in the original bill that would have automatically imposed whatever was remaining of the 1.05 percent local option tax in 2022 has been removed, Harper said.
While the revised bill doesn't change plans to replace the UTA board of trustees with three, full-time trustees charged with running the agency, there is a name change. UTA would become the Transit District of Utah.
"What we’re saying here is we’re starting a new era for transportation and transit," Harper said. A new name is recognition that the transit agency is going to improve, he said.
The bill no longer boosts taxes on hotel rooms and rental cars, after Harper ran into opposition.
It does, however, still hike registration fees on electric and hybrid vehicles. In addition to the current $44 fee, owners of electric cars would pay another $150; hybrids, another $20; and plug-in hybrids, $120.
"It's really an equity issue. We want everybody to pay for the use of the roads," Harper said. He acknowledged that, along with the sales tax hike, the fee hikes were the most controversial portions of the bill.
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Overall, lots of changes.
Some good:
Increasing the State Sales tax rate for transportation projects.
Changing the name of UTA also is good (It makes it sound like it could eventually be the State level equivalent of UDoT).
Removing tax increases on TRT and Rental Cars
Reducing the registration fees on Electric and Hybrid vehicles.
Some Bad:
Removing the automatic increase of sales taxes to 1.05% in 2022.
Removing the ability for County Councils to implement the increase directly as opposed to voter approval.
Not any real overhaul (yet) of UTA.
Overall, I can see that this would be a good first step, the State stepping up to the plate with $80 Million for just transit projects each year from the tax increase. A 30 year bond on that would allow the double tracking on FrontRunner (at least enough to get 15 minute frequencies) and Blue line Trax extention to Lehi.
With the talk about extra revenue that has become available, I think it would be wise for the State to put some towards Transit, be it for fares (look we are helping to clear the air) or projects.
I do think that the automatic tax increases for the 1.05% isn't completely gone. It is gone mostly because it is an election year, I would expect them to come back next year (if there isn't an update in the House version to re-add them).
The exciting thing about the numbers provided is that it does give more information about what would be expected if Utah and SL Counties were to both pass the 0.25% increase from Prop 1. The values collected would be nearly $70 - $75 Million yearly. Bringing current UTA counties up to 1.05% from the current levels would bring in roughly $100 Million yearly.
I would expect that 2/3 of the funds from the State sales tax increase would be spent along the Wasatch Front as that would be nearly equal to the population layout.
Imagine what could be done for Transit along the Wasatch Front with a dedicated increase of roughly $150 Million yearly (State plus local options) over what is currently collected. This of course wouldn't count any increase from any individual city, such as Salt Lake City, in their Transit Master Plan implementation ($7 Million yearly).
While it is currently a dream, it is getting a lot closer to reality and the funding increases may start as early as next year.