Local Option Sales & Use Tax for Transit

Matt Sibul |Government Relations Director Utah Transit Authority

October 2017 Outline

• Resources (Funding) • Local Option Sales and Use Tax by County • Local Option Sales Tax: Outcomes • UTA Stewardship of Public Funds • Proposition One: The Latest Round of Local Option Investments • Sales Tax Exemptions • Summary

2 UTA Resources (Funding)

Other 7%

Passenger Revenue 13%

Local Option Federal Preventative Sales Tax 64% Maintenance 16%

3 UTA Receipts of Local Option Sales Tax By County

Box Elder County – 1% Tooele County – 1% Weber County- 8%

Davis County- 10%

Salt Lake County- 64%

Utah County – 16%

4 Historical Sales Tax Revenue by County

Sales Tax Revenue by Year

$300 Millions $250

$200

$150

$100

$50

$- 2004 2005 2006 2007 2008 2009 2010 2011 2012 2013 2014 2015 2016 Actual Actual Actual Actual Actual Actual Actual Actual Actual Actual Actual Actual Actual

5 Local Option Sales Tax for Transit: Making a Difference

‒90The miles UTA of FrontRunner System

‒ 81 commuter rail vehicles

‒45 miles of TRAX

‒ 146 light-rail vehicles

‒600 buses (100 paratransit)

‒100 + bus routes

‒400 vanpools

‒7 counties served Existing and Planned Sales Taxes for Transit

SALES TAX RATES BY COUNTY

Existing 2017 2020 2030

$0.0120

$0.0100

$0.0025 $0.0040 $0.0036 $0.0040 $0.0080 $0.0050 $0.0065 $0.0025

$0.0060 AMOUNT

$0.0040 $0.0065 $0.0069 $0.0065 $0.0055 $0.0053 $0.0020 $0.0040

$0.0000 B O X E L D E R DAVIS S A L T L A K E TOOELE UTAH WEBER

2017, 2020 and 2030 assumptions from the Regional Transportation Plans Sources: Wasatch Front Regional Council Regional Transportation Plan 2015 Mountainland Association of Governments Regional Transportation Plan 2015

7 UTA: A Good Steward of Public Funds

TRAX Capital Costs Per Mile

REGION/TRANSIT AGENCY

Source: Federal Transit Administration (FTA) Capital Investment Program Project Summaries (2007-2015)

8 UTA: A Good Steward of Public Funds

FrontRunner Capital Costs per Mile

REGION/TRANSIT AGENCY

Source: Federal Transit Administration (FTA) Capital Investment Program Summaries (2007-2015)

9 UTA: A Good Steward of Public Funds

$30

$24.65 $25 Bus Operating & Maintenance Expenses per Vehicle Revenue Mile

$20 $18.47

$15 $13.64 $14.08 $12.82 $13.22 $12.27 $11.74

$9.24 $10 $8.69 $8.03 $8.32 $8.54 $7.37 $7.63 $6.67

$0 Valley CATS UTA SDMTS Metro (St. DART RTD METRO TriMet Metro Regional LA Metro MTA Port MBTA SFMTA Metro Louis) (Houston) (MN) Transit Authority

REGION/TRANSIT AGENCY

Source: National Transit Database (NTD) 2015 Full Reporter Summary and Complete Profile Set 10 UTA: A Good Steward of Public Funds

$40 $37.89

$35 TRAX Operating & Maintenance Expenses per Vehicle $29.60 $30 Revenue Mile $26.08 $25 $22.69 $21.62 $19.39 $20 $17.30

$14.46 $15.00 $15 $13.78 $14.22 $12.59 $12.60 $11.73 $10.00 $10 $8.22 $8.50

REGION/TRANSIT AGENCY

Source: National Transit Database (NTD) 2015 Full Reporter Summary and Complete Profile Set

11 The Latest Local Option Transit Investements: Proposition One

Davis/Weber/Tooele Counties 2016/2017 Prop 1 Service Improvements

• 22% increase in annual bus service • 2 new bus routes • 6 routes with longer operating hours on weekdays • 5 routes with added peak-hour service • 36% increase in annual weekend bus service • 4 routes with new Saturday service • 1 route with improved Saturday frequency • 3 route with improved Sunday frequency • New mobility management program • Volunteer Driver Program • Improved shelters & first/last mile solutions • 115+ improved bus stops • 4 bike lane projects completed / 2.5 additional miles in design • 104+ bike amenity improvements • 1,200+ feet of new sidewalk • Designing 7 multiuse trails to improve connectivity

12 Exemptions to Local Option Sales Tax Matter

Transit Funding Lost Due to Removal of Sales Tax Fiscal Impact to Transit for SB197S1 on Food (includes 0.0005 “makeup”) Refinery Sales & Use Tax Exemption $- Amendments (2017 Session) $350,000

$(2,000,000.00) $300,000

$250,000 $(4,000,000.00)

$200,000

$(6,000,000.00) $150,000

$100,000 $(8,000,000.00)

$50,000 2012 $(10,000,000.00) 2013 $0 2014 2018 2019 2020 2015 $(12,000,000.00)

2016 $(14,000,000.00) Note: 2008-2011 not shown for clarity

13 Summary

• Local option sales taxes: a workhorse for transit since 1974. • UTA works closely with our stakeholders to program local option sales taxes to meet community needs. • Peer metropolitan transit agencies: ahead of Utah in funding transit with local option sales tax • Exemptions to sales taxes hurt transit customers.

14 Thank you.

Matt Sibul, Director of Government Relations [email protected] 801-236-4731