Lawmakers on Monday filed a long-awaited bill that would allow Mecklenburg County voters to vote on an increase in the sales tax of 1 percentage point, to 8.25%, in order to fund billions of dollars worth of new transportation projects.
The primary sponsors include Republican Sen. Vickie Sawyer, who represents Iredell County and part of north Mecklenburg. Republican Sens. Bill Rabon of Brunswick County and David Craven of Union and Anson counties are also sponsors.
The bill would require the county to spend at least 40% of new sales tax revenue on roads. Only 40% of tax revenue could be spent on rail transit. Projects would include the Red Line commuter rail and the Silver Line east-west light rail.
Senate Bill 145 would allow Mecklenburg commissioners to place a referendum on the ballot asking voters to raise sales taxes by 1 percentage point.
The money — 1 additional cent of sales tax for every dollar spent in the county — would be used to help pay for a $25 billion transportation plan that would cover building new rail lines, adding bus routes, and expanding roads and sidewalks. Leaders of the city, county and Mecklenburg’s towns largely settled on the plan last summer, with the exception of the town of Matthews, which opposes it. That’s because Matthews would likely not have a rail line to uptown as originally envisioned. Instead, Matthews could have a bus-based dedicated transit line to save money and allow the Silver Line to be built to Charlotte's airport, west of uptown.
The fate of the bill is uncertain. Sawyer, who represents Iredell County and the northern portion of Mecklenburg, said this month that the bill is “a long way from being palatable to have enough votes to even get to the floor.”
The bill also says Mecklenburg County can't start the new sales tax until a new transit authority has been established to run the Charlotte Area Transit System. The transit agency now operates as a quasi-independent city department, reporting up to Charlotte's city manager but also answering to its own board of directors made up of local elected officials, the Metropolitan Transit Commission.
The plan still faces considerable hurdles. If the General Assembly approves the bill and the county places the sales tax increase on the ballot, voters would still have to say yes. Construction is expected to take around two decades.
Years of struggle to find funding
Republican legislative leaders on Monday praised Charlotte's efforts to write the bill after years of struggling to get support. Charlotte's updated transit plan, to be funded by the new sales tax, has remained mostly on the drawing board since it was proposed in 2020. Charlotte has agreed to spend $91 million buying freight train tracks from Norfolk Southern to the Lake Norman area, which would be used to build the Red Line commuter rail.
Speaking at the Charlotte Regional Business Alliance on Monday, GOP Senate leader Phil Berger said the bill has a chance of being passed this year, though he said there are hurdles.
When asked if he would encourage his members to vote yes, Berger said only "that I’m encouraging my members to look at the proposal, to understand the reasons for it, and to make a decision. They will have to make an individual decision."
House Speaker Destin Hall agreed with Berger. He said the Charlotte bill could be changed by his members in committee.
When asked whether the one-cent sales tax increase could be reduced by lawmakers to a half-cent, Berger said he didn't think that was likely.
Another wrinkle: The bill only goes into effect once the state budget is signed into law. If budget negotiations stretch into the fall, that could make it difficult to hold a referendum in November.
In a statement, Charlotte Mayor Vi Lyles praised the new bill but added there's a long way to go.
"We still have a lot of work to do, but having a bill filed is an important milestone — one that we have been working towards for years. I look forward to the work in front of us, with our partners, to deliver on a future that will make a difference for all of us because it will make a difference in the quality of life for our region," Lyles wrote. "It’s also important to point out the creation and governance structure of a new regional transit authority is also critical to our region’s long-term success. It is my strong desire that the structure that the city, county, and majority of towns agreed to remain intact."
The bill doesn't specify how the new transit authority would be constituted. It only says a new tax can't go into effect until "the General Assembly has enacted authorizing legislation that would allow a public transportation authority (hereafter 'the Authority') that includes Mecklenburg County to be established, and the Authority has been established."
The city, county and towns had earlier agreed to a transit authority structure that would see two dozen members picked by the city of Charlotte, Mecklenburg County, the towns, the governor, legislative leaders and the Charlotte Regional Business Alliance run the transit system. Charlotte would have had the largest number, 10, but not a majority.
In a joint statement, all of the local city, county and town managers (minus Matthews), said the bill is an important step for the region.
"The overall impact this legislation provides for our region is extraordinary and will enhance our opportunity to continue to meaningfully contribute to the state's economy," they wrote.
Matthews Mayor John Higdon, however, issued a statement Monday saying his town remains opposed to the bill.
"The Matthews Board of Commissioners has taken a strong stand against the transit proposal, as it does away with the long-planned light rail connection to our town. As Mayor, I remain committed to fighting for a plan that provides sufficient funding for Silver Line East to be built as light rail all the way to Matthews," he wrote. "Reliable, efficient transportation is critical for economic growth, accessibility, and quality of life, but it must be planned equitably and serve the entire region - not just select areas. I, along with the Matthews Board of Commissioners, will continue advocating for a transit plan that delivers on its commitments and provides meaningful solutions for all communities, including our own."
