A proposed sales tax hike has sparked debate about the level of public transit use in the Triangle.
Durham County voters will consider a referendum at the general elections Tuesday that proposes a half-cent sales tax increase to fund transit. Supporters of the referendum have said the increased revenue will improve public transportation in Durham and potentially encourage Orange and Wake County voters to also pass a sales tax to fund new train lines that could connect Durham to Raleigh and Chapel Hill. The referendum is one of the more contentious items on the ballot, given that it could raise Durham County sales tax from 6.75 percent to 7.25 percent.
“I’m very hopeful that the referendum will pass,” Durham Mayor Bill Bell said. “It’s really a vision for this region if you consider the fact that over the next 20 years, we expect to have almost a million more people in the region.”
Bell said the tax, if approved, would not go into effect until April 2012.
If the measure passes, Durham County would be the second North Carolina county, after Mecklenburg, to institute a transit tax, according to the Durham County Bus and Rail Investment Plan.
The long-range plan also calls for increased frequency of bus service in the next four years, followed in 2018 by a commuter train line between Research Triangle Park and Raleigh and a light rail line running between North Carolina Central University near downtown Durham along US 15-501 with stops at Duke and the University of North Carolina at Chapel Hill, beginning in 2025. The plan estimates that the Durham County sales tax will bring in $18.4 million in annual revenue, an amount that would more than double Durham County’s current transit spending. The long-range plan proposes that more than $1 billion in federal and state contributions would make up 75 percent of the total capital costs for the commuter rail and light rail systems in the next two decades.
Some in the area, however, believe that this half-cent sales tax increase is an inadequate measure to achieve its end goal.
“This whole regional transit system is contingent on the federal and state funding, and then Orange County and Wake County, who very likely may not pass a sales tax. A lot of people don’t want to pay extra sales taxes right now,” said Daren Bakst, director of legal and regulatory studies for the John Locke Foundation of Raleigh. “It’s possible that Durham County voters will be paying extra sales taxes for a transit plan that might never occur. Durham County is jumping the gun.”
Some students expressed concern the sales tax might be regressive despite built-in exemptions on certain products.
“I would prefer an income tax rather than a sales tax because of how a sales tax affects everyone equally despite differences in income,” sophomore Maria Arias said.
Bell noted, however, that the tax will not be imposed on food, medicine or clothes.
“It’s not as regressive as some people portray a sales tax to be,” Bell said, adding that the revenue from the tax could also enhance the performance of the existing public transportation systems in Durham, including the Bull City Connector that connects Duke and downtown Durham.
Duke has made bus lines connecting the University to Durham a priority, said junior Alexandra Swain, Duke Student Government vice president of Durham and regional affairs.
“It’s a little unclear to me where money’s going for improvements to transportation, but generally I think revitalizing public transportation and putting more money into it is good for Duke students,” Swain said. “But I don’t want to take a particular stance on it because I think it’s up to students to make their opinion on whether or not to support the referendum.”
Bell, who is on the board of directors of the Triangle Transit Authority, added that he believes concentrated economic development around the public transit stops could diminish sprawl and congestion in the future.
A variety of Durham political groups that do not typically agree have endorsed the referendum, added junior Elena Botella, president of Duke Democrats.
“There’s a lot of agreement in Durham from a lot of different stakeholders that it’s a really positive thing,” Botella said. “There really is a broad coalition—it’s not just the expected players. Even business-oriented groups like the Durham Chamber of Commerce, which tends to lean against tax increases, actively endorse the transit tax.”
Correction: In a previous version of this article, it was stated that the current sales tax in Durham County is 7.25 percent. The sales tax in Durham County is currently 6.75 percent. If the transit tax passes, Durham County sales tax would be increased 7.25 percent, not 7.75 percent as previously reported. The Chronicle regrets the error.
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