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Transit tax bill expected to return
[July 27, 2008]

Transit tax bill expected to return


(Herald-Sun, The (Durham, NC) (KRT) Via Acquire Media NewsEdge) Jul. 27--DURHAM -- A bill giving the Triangle and the Triad the same authority as the Charlotte area to raise money for transit with a local-option sales-tax surcharge didn't go anywhere in the 2008 General Assembly session.



But supporters say it likely will be back in 2009. And next time around, it could also have the weight of the governor's office behind it, as both major-party candidates for governor at least in principle support the idea of expanding transit-tax authority to more cities.

The main difference between Democratic candidate Beverly Perdue and Republican candidate Pat McCrory on the issue is that McCrory says he'd urge local leaders to spell out plans for using the money and line up public support before they formally request tax authority.


McCrory, Charlotte's mayor, said that's the approach he and other political leaders took in the mid-1990s when they pushed Mecklenburg County's transit tax through.

"What we did ... was put our plan together, get public feedback on it in communitywide meetings and then present it to the legislature for approval to try to seek funding," McCrory said.

Perdue, currently lieutenant governor, attaches no qualifier to her support for the idea but also isn't as specific.

"She's a big believer in mass transit and does think local areas should have the option of coming up with some local revenue sources," said David Kotchman, spokesman for her campaign. "If the public does support it, then the state can help [projects] with some of the gap funding to help make it happen."

But local legislators say the initiative in 2009 likely will remain with the General Assembly.

Transit-tax supporters introduced bills in both chambers of the assembly that largely followed the recommendations of a House and Senate study committee. But neither bill made it out of committee.

The most activity came in the N.C. House, but the chamber's leadership ultimately decided against trying to move a bill in the 2008 session.

State Rep. Paul Luebke, D-Durham, said the bill was the focus of a meeting involving House Speaker Joe Hackney, D-Orange, Majority Leader Hugh Holliman, D-Davidson, and the chairmen of three key committees. Luebke participated as senior chairman of the House Finance Committee.

The group decided to hold off this year because supporters couldn't identify more than 55 House members who were likely to vote for the bill, Luebke said. That was six short of the number needed to pass it.

Supporters didn't convince a single House Republican to vote for passage, and also had trouble lining up Democrats, he said.

Luebke said the Democratic opposition came from members of the Legislative Black Caucus who agree with him that sales taxes unfairly penalize poor and middle-income residents, and from smaller cities such as Greenville and Wilmington "who wanted to know why they couldn't have a transit-tax option."

Given that, "the conclusion of all gathered, including the speaker, was that the bill was not ready this year," Luebke said.

Next year, renewed debate on the idea will likely start with "rewriting the bill to share the burden," tax-wise, in a way that Democrats can support, he said.

It's also clear that there will be a big debate in the General Assembly on putting a multibillion-dollar transportation bond referendum to a statewide ballot.

"One of the most critical questions about the bond issue will be [how much of it is] directed at transit infrastructure," Luebke said. "It's critical it not be treated any less fairly than highways. If in fact transit is a big part of the bond issue, there will be less need for local money."

Supporters of a transit tax, however, say access to local money is key to securing the federal subsidies that make big-dollar transit projects possible.

If a new presidential administration favors transit either on its own merits or as an economic-stimulus measure, "those municipalities equipped with a transit plan and a local stream of matching money are going to receive the big federal funding," said state Rep. Becky Carney, D-Mecklenburg, chief sponsor of this year's House bill. "It's easier to fill a pot when it's half full than when it's empty."

State Sen. Floyd McKissick, D-Durham, who co-sponsored a Senate version of the bill, agreed and noted that for now, a tax on rental vehicles provides about the only local money officials can pledge to new transit projects.

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Copyright (c) 2008, The Herald-Sun, Durham, N.C.
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