Coalition to broaden transit tax proposal

Using a local-option sales tax to fund public transit should be done only if the tax also could fund roadways, Coalition for Regional Public Transportation members agreed.

That’s the thrust of draft legislation that the coalition plans to propose to the Idaho Legislature session that starts in January.

Many coalition members said it stands a better chance to pass than a bill that the House Revenue and Taxation Committee voted down this year, in part because it can appeal to communities outside the urban and suburban Treasure Valley.
The old legislation sought to allow communities to approve, through a two-thirds vote, a local-option sales tax to fund public transit. The new proposal would allow local boards also to direct the option-tax money toward road projects.
Including road funding increases the legislation’s potential appeal around Idaho, including in rural areas, said Ken Burgess of Veritas Advisors LLP, a lobbyist for the Community Planning Association of Southwestern Idaho.
The Boise Metro Chamber of Commerce and several local elected officials have supported beefing up public transit as a way to attract new businesses, and to help existing businesses already affected by traffic congestion in the growing Treasure Valley. Challenges include recent declines in federal funding for public transit, and an Idaho law that allows local-option tax elections only for resort communities and county jails.
At the same time, road agencies are grappling with the need for road construction and maintenance growing faster than the revenue stream.
Elaine Clegg, Boise City Council president, said the coalition could have done additional work crafting and drawing support for a transit-only option. More transit money is needed, and one concern is that public transit would “lose its voice,” she said.
She would be more supportive of a roadway option that limits the number of roads considered – regional corridors, for example, she said.
Roy Eiguren, lobbyist for the coalition, said the draft legislation calls for local committees to decide how to spend the funding.
The proposed legislation would amend the Regional Public Transportation Authority Act to re-establish it as the Regional Transportation Authority Act.
With two-thirds voter approval in an RTA’s boundaries, the RTA board of directors may levy a local-option sales tax for two purposes: to finance construction and maintenance of highways under the jurisdiction of counties, cities, highway districts and the Idaho Transportation Department within the RTA boundaries in amounts above and beyond all other existing sources of financing available to those entities; and to finance, build, operate and maintain public transportation systems.
It also requires that voters approve the RTA board’s long-range transportation financing plan.
Elections would be held in May or November of any year. In the initial election, the sales tax must be no less than 0.1 percent and no more than 0.75 percent.
The sales tax would sunset after 20 years unless re-authorized by two-thirds vote.
Dan Stevens, who chairs the coalition, said the proposal will be fine-tuned over the next three months. Valley Regional Transit will collect suggested modifications, he said.