Charlotte leaders’ transit goal seems within reach

The North Carolina Senate on Wednesday passed a bill authorizing Mecklenburg to hold a sales tax referendum for transit — a move that almost certainly means voters will have the chance to weigh in on the measure at the ballot box in November.

The measure passed the N.C. House last week, 104-5. The Senate approved it 42-4.

While there still need to be a few procedural votes, the passage in the full Senate as well as the full House indicates that Charlotte is on the cusp of achieving one of its main legislative policy goals from the last few years: placing a sales tax referendum on the ballot to fund expansions of light rail, buses and roads.

It would be a major political win for Charlotte Mayor Vi Lyles and for Charlotte business leaders, who have sought legislative approval for a transit tax referendum. For years, it seemed unlikely, with a Democratic-run city pushing for permission for a referendum from anti-tax Republicans who control the General Assembly. But here we are.

Robert McCutcheon, CEO of the Charlotte Regional Business Alliance, said in a statement that the advancement of the bill in Raleigh is “a wonderful example of our elected officials working together on an important issue. House and Senate coming together, Republicans and Democrats, and lawmakers from our neighboring counties finding solutions to concerns.”

What it would do: The bill would allow Mecklenburg commissioners to place a referendum on November’s ballot that would increase the sales tax from 7.25% to 8.25%. Over the following 30 years, that increase would raise an estimated $19.4B, which would be part of a $25B transit-and-transportation plan. The money would be overseen by a newly created 27-member transit authority, with 40% going to rail, 20% to buses and 40% to road-related projects.

Commissioners almost certainly would vote to allow the referendum. Commissioners chairman Mark Jerrell said the commissioners would vote on Sept. 3 to place the question on the November ballot, WFAE reported last week.

Charlotte leaders have wanted a higher sales tax as a new revenue source to pay for transportation needs for years, saying that existing money from federal, state and local sources is inadequate to fund the needs of a growing city. The existing light rail line was funded with a sales tax increase voters approved in 1998.

The bill, known as the PAVE Act, still requires another full vote in the Senate, probably Thursday, followed by a vote in the full House. As the measure has already passed both chambers, those are considered to be procedural votes. Gov. Josh Stein would then need to sign the measure, and he is expected to.

The bill passed both chambers with large bipartisan majorities. It was framed not as a potential tax increase, but as allowing Mecklenburg residents to decide for themselves.

Polls over the last few years have shown that residents are split over the issue. Business groups are expected to mobilize in support of the referendum.

Business leader Ned Curran, the former chair of the N.C. Board of Transportation, told the Charlotte Business Journal last week that $1M has already been pledged for a pro-transit tax campaign, which would start later this summer.