ASHEVILLE – City council is asking state lawmakers to let residents vote on whether to increase sales tax to fund the bus system.
The council unanimously voted on February 23 to ask the General Assembly to pass a law allowing Asheville or any city to hold a referendum on increasing the transit tax.
Prior to the meeting, councilors had signaled that they intended to vote in favor of the Asheville referendum motion. The additional request for other cities in North Carolina was recently added, according to Mayor Esther Manheimer, who said it was something she had spoken to other mayors about.
“We only support national legislation,” she said.
The unanimous support was part of a 7-0 vote for a list of proposed legislation. Manheimer said the council had not bothered to move in recent years because it was largely “in defense” trying to fend off hostile laws that the general assembly had directed against Asheville by a Republican majority, like trying to seize the city’s water system and try to force the council to switch to a district electoral system.
State Senator Julie Mayfield, a former councilor and transit attorney in Asheville, said she was ready to sponsor a bill for a 1/4 cent referendum on sales tax.
According to the law, counties can hold referendums to implement sales tax increases, but cities cannot, unless they receive special approval from the legislature.
If the proposed bill is in the form of local law that only applies to Asheville, it likely has a good chance of getting passed, as long as all lawmakers representing parts of Asheville agree. There is a senator and three members of the House of Representatives, all Democrats, whose districts comprise parts of the city.
Rep. Brian Turner, whose 116th district covers southwest Buncombe County, said he would support the bill if there was a guarantee that money would not be diverted elsewhere, as was the case with a sales tax that did 2011 Asheville-Buncombe’s electorate approved the construction of the Technical Community College.
If it becomes law, voters could vote as early as 2022. If approved, the tax would generate an estimated $ 10 million a year.
While the bus system’s operating budget has grown 50% in three years – from $ 8.5 million to $ 12.3 million – councilors have called for greater expansion and made transit a top priority. Some of the new money was used to cover the increased cost of paratransit services.
Most of the revenue comes from the city’s general fund of $ 6.8, more than half of which is generated through property taxes. Federal and state grants total $ 2.9 million, though that funding stream has shrunk over three years. The third largest source is $ 1.6 million from parking fees.
Outside of the operating budget, the city has used savings and a $ 32 million transportation bond for bus purchases and other capital projects.
Joel Burgess has lived in WNC for more than 20 years covering politics, government and other news. He has written award-winning stories on topics ranging from gerrymandering to the use of force by the police. Please support this type of journalism with a subscription to the Citizen Times.