TARTA: Sales tax is more equitable
Written by James Gee | | news@toledofreepress.comEditor’s Note: The following was submitted in response to the Feb. 7 guest opinion, “Limousines are cheaper than TARTA,” by Waterville Mayor Derek Merrin.
While it may seem the fixed-line transit service provided by the Toledo Area Regional Transit Authority costs its suburban member communities a great deal, the truth is what the suburban communities really oppose is the manner in which TARTA is funded.
What most people oppose is paying the property taxes necessary to support public transit.
Property taxes not equitable
It is a recognized fact that property taxes are the least equitable way of financing public transit. Property taxes put the burden squarely on the shoulders of property owners whom are then expected to foot the bill for the majority of state, county, municipal and school taxes.
TARTA’s Board of Trustees, consultants and administration agree property taxes are not equitable, and a change in TARTA’s funding basis must happen — the sooner, the better.
At its last meeting, the board authorized me to contact TARTA’s nine member communities and begin the process of switching TARTA’s funding source from property tax to a transit sales tax.
To make this switch, each member community must pass a resolution by mid-summer in favor of a public vote on changing the tax, admitting Lucas County as a TARTA member and other TARTA bylaw changes concerning becoming and withdrawing from TARTA membership.
A transit sales tax
The advantages of a transit sales tax are well known.
The transit sales tax will be paid by everyone making a purchase within TARTA’s service area, no matter whether that person lives in the service area or in Monroe, Port Clinton or Findlay. A transit sales tax is a far more equitable method of funding public transit.
Further, sales tax in Ohio is not paid on prescriptions or on food for home consumption.
TARTA was founded in 1971 and was the first transit authority formed as a result of new language in the Ohio Revised Code. At that time, property taxes were the only funding mechanism. Later, language in state law allowed sales tax as an option. Today, TARTA is the only system still funded by property taxes, while Ohio’s other major transit authorities have switched to a transit sales tax. We agree.
It’s time to bring TARTA’s funding into the 21st century.
An analysis
A year ago, the results of TARTA’s first ever Comprehensive Operations Analysis (COA) included five long-range objectives. To fund these, the COA recommended TARTA adopt a half-cent transit sales tax.
A few months later, TARTA’s annual report was published and included an analysis of the transit sales tax recommendation, paraphrased in part below.
- A transit sales tax lowers area property taxes by eliminating TARTA’s existing two property tax levies, which generate 2.5 mills total.
- TARTA is the only transit authority in Ohio still funded by a property tax.
- A half-cent transit sales tax is equal to $0.50 for each $100 purchased.
- A transit sales tax is considered to be the fairest and cheapest method of financing public transit, since it allows people to “pay as they go.”
- A transit sales tax is the most equitable method of funding TARTA.
- It is paid by everyone making a purchase within TARTA’s service area, not just property owners.
- Food and prescriptions are exempt from the transit sales tax.
- A transit sales tax is more effective than a local property tax.
- Transit sales tax is the most used source of transit funding nationally.
- A transit sales tax will allow limited service expansion.
- A transit sales tax enables TARTA to serve all regional destinations.
- A transit sales tax also enables TARTA to begin building adequate financial reserves, as recommended by the COA.
Toward November’s ballot
TARTA’s board will be the sponsoring agency that will submit the transit sales tax for a vote within TARTA’s service area. This must be done in mid-August for the issue to appear on the November general election ballot.
The first step in this journey of change is to begin the resolution process. Between now and mid-summer, TARTA will actively solicit member communities to pass a resolution to eliminate TARTA’s 2.5 mill property tax and enact a transit sales tax to fund TARTA. With passage by all TARTA members, the issue will go to the November ballot.
An invitation
On behalf of TARTA, I invite the mayors, councilpersons, Lucas County commissioners and township trustees within and contiguous to TARTA’s service area to put away the property tax arguments and, instead, work with TARTA to change its funding and further improve TARTA’s service.
I will be calling the governing bodies in each TARTA community to set a date when TARTA can come and discuss what these changes will mean to each community and how a transit sales tax will reduce residents’ property tax bills.
James Gee is TARTA’s general manager.
As a resident of Waterville I thank you for taking the time to make a well organized response. TARTA serves a need that a private service could not replicate, and educating us about these issues is important rather than allowing something to develop to some sort of witch hunt
This comment was posted on February 12th, 2010 at 11:37 amGreat gobs of greasy gopher guts…TARTA’S, salvation is more TAXES ??!! No other way to be efficiant !? NONE ?!
How about smaller busses or vans, to transport the ‘riderless busses’, that is called TARTA ?!
This comment was posted on February 12th, 2010 at 12:24 pmThat way, the riderless vans can at least save money on fuel !!
THINK OUTSIDE DA BOX…
Does TARTA have a reader comprehension problem? Mayor Merrin never debated TARTA’s source of funding, but that LIMOS WERE CHEAPER THAN TARTA.
This is such a sad response….
This comment was posted on February 12th, 2010 at 4:44 pmI agree with Jack. No matter where TARTA draws money from, they failed to acknowledge Mayor Merrin’s point: TARTA offers poor value to suburban communities relative to the cost to taxpayers. TARTA is an oversized government bureaucracy. It’s not hard to see why they are in financial peril when they can’t even comprehend a basic article. Kudos to Merrin for pressing this issue!
This comment was posted on February 13th, 2010 at 11:12 amWhen you can’t win an argument you have to change the subject. That’s what TARTA did. How much longer will taxpayers allow the TARTA leviathan pull wool over our eyes?
This comment was posted on February 13th, 2010 at 11:13 amwhy not just raise the cost to riders? we are going to be asked to pay a higher tax for schools, higher taxes to cover the cities’ deficit- where does it end?
This comment was posted on February 13th, 2010 at 6:43 pmWhile I am not a resident of Waterville I agree that Tarta is just to expensive. We all know that anything a goverment does the private sector can do much much better. Dont let Tarta become another Amtrak.
This comment was posted on February 15th, 2010 at 1:02 amJames Gee characterizes TARTA as a fixed route system. What is Call-A-Ride but a government subsidized taxi service? Maybe they need to get out of the cab business and run real fixed routes that actually cater to those that need it. I imagine that more frequent buses, on commonly travelled routes would succeed. Build from there.
This comment was posted on February 15th, 2010 at 10:24 pmPeople don’t ride TARTA because many of the times you can walk as fast to get to your destination, if not faster.
I agree with you Kevin that would make more sense. But the fact remains that TARTA like any other goverment subsidized entity is a huge inefficient money pit. Our city, county, state, and even our country would be better off if we didnt have these programs in the first place. There are to many taxpayers barely getting by on their own incomes. It not fair or right for anyone else to force them to pay for these services. Taxing the many to provide for the few is a disservice to everyone.
This comment was posted on February 16th, 2010 at 11:18 amAlthough TARTA may be inefficient in many ways, here is a paper by Policy Matters Ohio laying out the benefits of a public transit system for the local economy.
http://www.policymattersohio.org/pdf/OhiosCommuters2009_03.pdf
This comment was posted on March 1st, 2010 at 3:43 pmMayor Merrin exposed his typically rural and unsophisticated view of public transportation. We should be angered not by one empty bus, but the excessive waste of having each individual resident ride solo in his gas-guzzling SUV.
This comment was posted on March 5th, 2010 at 2:40 pmYes, public transportation costs money. Private transportation, however, costs even more – in money, in damage to the environment, and in political strife due to dependence on (foreign) oil.
As others have alluded, there are services that buses provide that private vehicles cannot, such as room for 60+ passengers per trip and wheelchair accessibility.
The Mayor’s crack about a “utopian fantasy” exposes his prejudices. I suspect that the line he used to open that paragraph is untrue.
Progressive officials should promote public transportation to better their environment, their community’s options and the unemployed, underemployed, wheel-chair bound or environmentally responsible citizenry they should be representing. Elected officials have a duty to consider the benefits to society, not just those of individuals.
It’s a shame that with today’s global accessibility, some mayors still think as if they’d never been off the farm.
Changing schedules to 80 minute routes instead of adding to the schedules on commonly traveled routes is the reason for low ridership. Toledo is a small town.
This comment was posted on March 14th, 2010 at 10:03 pmPeople don’t ride TARTA back and forth to work because spending 2+ extra hours a day on a bus added to an 8 hr workday will not fly. This is small town Toledo….Buses should be running every 30 minutes max. It’s not rocket science…Most exit work downtown at 4:00pm…. waiting until 4:40-4:50 for a bus…and arriving to home at 5:30pm ~~~that’s 1 1/2 hours after work!!! Totally unreasonable riding the bus!!!
Close those schedules to 30 minutes and you’ll increase ridership!