We all know we have a transportation problem here in the Old Pueblo. Lots of problems; not enough money to fix them.

I support much of the RTA draft plan, which will dramatically expand our transit capacity, frequency, and efficiency. But the half-cent-sales tax that funds it will only go so far. We need to maintain our neighborhood streets and we need to add more sidewalks, bikeways, and additional public transit in order to save our economy as we near the end of cheap oil.

There is a fair, relatively painless way to collect funds for these projects, and we can enact it right now in the City of Tucson. It is not a new tax. It is the closure of a long-time loophole.

Currently, gasoline sales are exempt from city and state sales tax.

Fifteen other states, including California, charge a gas tax AND a sales tax on gasoline. We do not.

If the City of Tucson collected our current 2% sales tax on gasoline sales, we would pay only a few cents more per gallon at the pump. Tucson would take in between $20,000,000 and $30,000,000 per year in revenues which could be dedicated to public transit, neighborhood street maintenance, sidewalks, and bikeways.

Unlike the current gas tax, the sales tax is a percentage instead of a fixed sum, so the revenues generated will increase with the price of gas.

The Arizona Constitution does not forbid the collection of sales tax on gas, and does not restrict its usage to only roads. This type of tax has not yet been tested in the state, but all it takes is an act of Mayor & Council.

If the Arizona Legislature discovered a commitment to a more livable future, they could also subject gasoline sales to the state’s 5.6% portion of the sales tax.

With the resulting state revenues–$10 to $15 BILLION over 20 years–we could build high-speed passenger rail service connecting Flagstaff to Prescott to Phoenix to Tucson to Green Valley to Nogales to Yuma to El Paso to Los Angeles and beyond. We could serve commuters, seniors, and tourists while boosting the state economy and reducing congestion on our interstates for drivers.

We must find the revenues to create the kind of future we want in this state and this city, and build the infrastructure we need to make sure that our economy survives the end of cheap oil.

This entry was posted on Wednesday, October 5th, 2005 at 10:45 am and is filed under 3rd Rail of the Week, Economic Development, Protecting the Environment, Sensible Development, Transportation. You can follow any responses to this entry through the RSS 2.0 feed. Both comments and pings are currently closed.