All About The Sales Tax Referendum for Transportation

What is the sales tax referendum?

Mecklenburg County voters will decide in the upcoming election whether to increase the sales tax to 8.25% from the current 7.25%. The increase is expected to raise nearly $20 billion over 30 years and would be used to expand rail and bus service and provide money for roads, sidewalks and bike lanes. The Transit Time newsletter (a production of The Charlotte Ledger and WFAE) published this piece more than a year ago that outlines what would happen if the referendum passes and how funds are expected to be spent, as well as how much the tax increase would cost the average household (approximately $240 per year).

The sales tax increase promises to impact many forms of transportation. Some of the ways it would do that are:

🚝 Rail:

$7.8 billion would go to rail projects, which are expected to include:

Building the Red Line commuter rail between uptown and northern Mecklenburg
Building the Silver Line light rail, which would run from the airport through uptown to Bojangles Coliseum
Extending the Gold Line streetcar down Central Avenue in east Charlotte and Beatties Ford Road in west Charlotte
Extending the Blue Line light rail to Pineville

(More information on rail, from the Transit Time newsletter)

Photo from The Charlotte Ledger's Transit Time

🚎 Bus:

$3.8 billion would go to improving bus service, consisting of:

Upgrading all routes to 30-minute frequencies
Upgrading 15 routes to 15-minute frequencies
Adding benches/bus shelters to roughly 2,000 bus stops
Expanding Uber-like “microtransit” service to 18 zones in the county

(More information on the effect on buses, from the Transit Time newsletter)

A new 27-member transit authority would make decisions about spending the money for rail and buses. It would have representatives appointed by the city, county, state government and Mecklenburg’s towns. The Charlotte Area Transit System (CATS) would be run by this new authority.

Photo from The Charlotte Ledger's Transit Time

🛣️ Roads:

$7.8 billion would go to roads and road-related projects. Charlotte and Mecklenburg’s six towns would decide how the money is spent in their jurisdictions. The money can be used for a wide range of projects, including sidewalks and bike lanes. Charlotte has a 100-page book that details some of the projects it is considering, and Mecklenburg’s towns have ideas, too. (Read more about the plan’s road money, from the Transit Time newsletter)

Some of the smaller Mecklenburg County municipalities outline more details about the referendum to their voters as well: here are links from the local governments of Cornelius, Davidson, Matthews, and Pineville.

Photo from the city’s “Blueprint for Charlotte Mobility Investment.”

Where can I find more about the pros and the cons?

The Charlotte Regional Business Alliance is spending $3M to market the referendum and has a website that details how Mecklenburg County stands to benefit and consolidates the endorsements of many of the most prominent proponents of the referendum, including organizations such as the Black Political Caucus (which earlier in the year expressed reservations).

✅

The Case For

Proponents cite the possibility of additional federal grants and the “once in a generation” opportunity the tax provides, particularly given the widespread buy-in from the N.C. legislature the referendum needed to even get on the ballot. Sustain Charlotte penned this editorial for The Transit Time newsletter outlining why voters should support the tax increase. This piece in The Assembly NC also discusses the heavy political support the referendum has in spite of the fact that the tax is widely acknowledged to be regressive.

❌

The Case Against

The nonprofit NC Budget and Tax Center outlines the opposition to the sales tax which is primarily about the regressive impact. Action N.C. is another nonprofit that penned this op-ed for The Transit Time newsletter that suggests the tax will lead to “low-income people to pay for their own displacement.” Former Charlotte Mayor Jennifer Roberts has been one relatively well-known individual who has expressed opposition to the tax.

Where do politicians stand?

The Election Hub captured a variety of responses from candidates and elected officials about their stance on the sales tax referendum, from election questionnaires and public statements. Most responses were positive to neutral (e.g. “we’ll support what voters want”). Few candidates expressed explicit opposition to the sales tax increase, though some elected officials in Matthews and a minority of Charlotte City Council members have been vocal about not supporting the tax.

Council Member At-Large Dimple Ajmera: “Yes, I would vote in favor of the referendum — because I know firsthand how critical public transportation is for working families.”

Council Member At-Large Victoria Watlington: “My position will be shaped by these community priorities, because any transit plan must work for all Charlotteans.”

Council Member At-Large LaWana Mayfield: “I personally am listening to residents and questioning the benefits to our most vulnerable residents before making my decision.” WFAE reported that she recently said she is against the tax.

Council Member District 1 Dante Anderson: “As the 14th largest city in the United States, we must invest in a robust transportation plan. We cannot drive our way out of congestion. Just ask Atlanta!”

Candidate for District 3 Joi Mayo: “My concern is that transit expansion can lead to the displacement of long-term residents. Any plan must include protections like land banking, affordable housing investments, and community benefits agreements to ensure growth benefits current communities.”

Candidate for District 3 Robin Emmons: “I will vote in favor only if the final plan includes clear safeguards for economic inclusion, citizen oversight and anti-displacement protections.”

Council Member District 4 Renee Perkins Johnson: Johnson says she is against it, according to WFAE: “The proponents even say this isn’t perfect, but let’s pass it anyway," she said. “Ask yourselves: Where else would that standard be acceptable? How can we knowingly accept a flawed plan?”

Candidate for District 5 J.D. Mazuera Arias: Mazuera Arias has said he opposes the tax referendum. He has said it might be good for the city but does not benefit east Charlotte.

Candidate for District 6 Kimberly Owens: “The proportion of proposed spending on roads vs. rail and buses is not what Charlotte preferred and there are communities such as Matthews who feel their voices were not heard. However, the funds that would be raised through the sales tax increase are a necessary step forward to catch up with Charlotte’s transportation needs. I wish the funds came from a source other than a regressive tax, but with no state and federal funding on the horizon, the tax increase is, in my opinion, the only remaining option.” She said at a recent candidates’ forum that she is “all in” on the plan.

Candidate for District 6 Krista Bokhari: “We are asking for billions of dollars without a clear, comprehensive plan in place. I fully understand how transformational this investment could be for Charlotte, but it must be done the right way. I won’t support it if it turns into another backroom deal that benefits special interests rather than the people of Charlotte.”

Council member District 7 Ed Driggs: Driggs has said he backs the referendum.

Matthews Town Commissioner John Urban: “Matthews will end up being taxed, yet will not reap the benefits of the tax. Many businesses in Matthews will be hurt, being so close to Union County with a lower sales tax.”

Gov. Josh Stein and Lt. Gov. Rachel Hunt: Both have said they support the referendum.