House gives initial OK to possibility of mass-transit tax

Bill would let county voters decide on tax

By: By James Romoser | JOURNAL RALEIGH BUREAU
Published: April 22, 2009

RALEIGH

Forsyth County could get the option to raise the local sales tax in order to pay for improvements to its mass-transit system.

The sales-tax increase would have to be approved by voters in a referendum.

Any such referendum is likely years away, but city and state officials say that it's an important option in long-term plans to ease traffic and reduce air pollution from cars.

"I think it's down the road," said the mayor of Winston-Salem, Allen Joines. "Frankly, I think we'll probably have to hit a level of congestion and environmental awareness that we're not at yet. As mayor, I'd want to make sure that the project is feasible."

The option to raise the sales tax to pay for public transit is included in a bill that got initial approval yesterday from the N.C. House of Representatives.

The idea is modeled on a light-rail system in Mecklenburg County. Voters there approved a half-cent increase in the local sales tax that was used to finance the public-rail system.

The bill under consideration in the General Assembly would give all counties the option of holding referendums on raising the sales tax for the purpose of improving mass transit.

Counties in the Triad and the Triangle would get the option to raise the sales-tax rate by a half-cent. Other counties could raise it by a quarter-cent.

"What this bill does is it puts the tools in place for the kinds of transit options our people need," said Rep. Deborah Ross, D-Wake, one of the bill's sponsors. "But it gives a tremendous amount of local input and local control to do it,"

Some Republicans criticized the bill because of the possibility of new taxes. They said that before authorizing new tax options, the legislature should revise the complicated formula that the state uses to distribute transportation money.

But Rep. Bill McGee, R-Forsyth, one of the bill's sponsors, said he supports the option for voters to decide if they want to raise taxes. He said that expanding mass transit will be important in the state's rapidly growing metropolitan areas.

"Our state population is going to grow to 12 million over the next few years," McGee said. "Most of the growth is going to come into these (urban) areas as they act as magnets to bring people into North Carolina."

Unlike in Charlotte, an intra-city light-rail system is not being seriously considered for Winston-Salem, Joines said. More realistic is a commuter-rail system that would connect Winston-Salem and Greensboro.

If voters approved a sales-tax increase, the money would be used for that and other transit projects being considered by the Piedmont Authority for Regional Transportation.

Joines said that each day, about 50,000 drivers enter Forsyth County, and about 70,000 drivers enter Guilford County.

"Eventually the I-40 corridor is not going to be able to handle the increasing amount of commuter traffic going back and forth," he said.

Joines emphasized that he would want to be sure that any large mass-transit project, such as a commuter-rail system, would be practical and effective before asking voters to approve a sales-tax increase.

The current sales-tax rate in Forsyth County and most other North Carolina counties is 6.75 percent.

The transit bill, House Bill 148, was approved 77-40 in the House yesterday. A second vote is required before the bill gets sent to the Senate.

■ James Romoser can be reached at 919-210-6794 or at jromoser@wsjournal.com.