Transit momentum: Newly filed bill would allow sales tax increase for transit

CHARLOTTE — Charlotte’s push for a sales tax increase for transit took a big step forward Monday with the filing of the “Mecklenburg Transportation Referendum” bill in Raleigh.

Senators Vickie Sawyer, Bill Rabon, and David Craven introduced the bill in the state senate.

Senate Leader Phil Berger and House Speaker Destin Hall addressed the bill’s prospects during an address to the Charlotte Regional Business Alliance Monday afternoon.

Managers for the city of Charlotte, Mecklenburg County and all towns except Matthews released a statement Monday morning thanking the senators for sponsoring the bill.

“Senators Bill Rabon, David Craven, and Vickie Sawyer, as sponsors of the bill, deserve our sincere thanks and appreciation for understanding the importance of this proposal and for allowing our community the opportunity to determine its transportation future by making a choice for increased regional transportation infrastructure investments,” the statement said. “The bill provides the opportunity for unprecedented funding for roads, transit and bus systems that will have both immediate and long-term impacts for our commuters, residents, and visitors.”

The bill grants the Mecklenburg County Board of Commissioners the authority to authorize a 1% sales tax increase referendum. Local leaders have expressed a desire to hold the referendum vote in 2025.

According to the bill, voters would be asked if they are “for” or “against” “one percent (1%) local sales and use taxes, in addition to the current local sales and use taxes, to be used only for roadway systems and public transportation systems.”

Sales tax collection would start in 2026. Plans call for 40% of the proceeds to be used for road improvements, 40% for rail improvements and 20% for buses.

The bill specifically references the Red Line. The Red Line is the proposed commuter rail from Uptown Charlotte to Iredell County. Charlotte City Council purchased the tracks necessary for the rail from Norfolk Southern last year. The bill says at least 50% of the Red Line must be completed before the completion of any other rail project “absent the existence or occurrence of force majeure events that delay completion of the Red Line or make completion of the Red Line impractical.”

Plans call for the creation of a new regional transit authority to determine and oversee funding decisions as a result of the new sales tax. The creation of this authority isn’t included in the bill but is expected to be added in or introduced in a separate bill in the future.

The bill says the authority has to solicit input from the towns of Cornelius, Davidson, and Huntersville on the Red Line design. Should Mooresville want the Red Line to extend into its town, the authority will have to talk to Mooresville as well. The bill says the Red Line should not terminate in the town of Davidson without the approval of Davidson.

The introduction of the bill provides a much-needed boost of momentum for Charlotte’s transit goals. Mayor Vi Lyles has been advocating for the 1% sales tax increase since 2020.

“In a community that presents opportunity, where more people are arriving every day, this will provide infrastructure to support a good quality of life. It will help secure a more prosperous and better future through transportation investments,” Mayor Vi Lyles said in a statement. “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.”

Hall and Berger are addressing the Charlotte Regional Business Alliance at 2 p.m.

Berger praised the county’s lawmakers for coming together to create the plan.

“I cannot overemphasize how impressed I’ve been with the willingness of local governments and local elected officials working together to come to this point,” Berger said.

But this is just step 1.

The next step is behind the scenes which they hope gets support on the floor.

Hall said the bill is heading in the right direction, but each member must make their own decision. He said it will be key for Mecklenburg County to ensure its funds are efficiently spent.

“The decisions aren’t made on politics or personality, that we are not sending trains to nowhere and are put in places where the region can get the best economic benefit,” Hall said.

Even if it does pass, it doesn’t go into effect until the budget becomes law. Hall is optimistic that won’t be an issue.

“We have a working supermajority in the House,” Hall said. “We have a handful of Democrats who are willing to vote with us on key issues.”

In a statement, the Charlotte Regional Business Alliance and other Charlotte business leaders said they strongly support the legislation.

“Thank you to the members of the General Assembly for advancing this momentous piece of legislation,” interim President and CEO of the Charlotte Regional Business Alliance Andrea Smith said. “Investments in transportation infrastructure are critical for the region’s long-term competitiveness, success, and quality of life for all.”

“The broader business community overwhelmingly supports the proposed legislation to expand our transportation infrastructure, and we couldn’t be more appreciative of Raleigh’s leadership for their ongoing commitment to furthering the economic growth of our region,” Advocate Health CEO and Chair of the Charlotte Executive Leadership Council Gene Woods said.

Statement from Managers:

The Managers of Mecklenburg County, the City of Charlotte, and the towns of Cornelius, Davidson, Huntersville, Mint Hill, and Pineville, representing 97% of the county, applaud the filing of Senate Bill 145. Senators Bill Rabon, David Craven, and Vickie Sawyer, as sponsors of the Bill, deserve our sincere thanks and appreciation for understanding the importance of this proposal and for allowing our community the opportunity to determine its transportation future by making a choice for increased regional transportation infrastructure investments. The Bill provides the opportunity for unprecedented funding for roads, transit and bus systems that will have both immediate and long-term impacts for our commuters, residents, and visitors.

The road funding provisions are unique in that funds will be allocated directly to the City and the individual towns across the county where local governments will have the independent authority to make decisions about roads, intersections, safety improvements, and other ancillary road enhancements within their communities that will have a positive daily impact on residents. The City and the towns have road infrastructure needs that are currently unfunded and cost our citizens time, car upkeep, impaired quality of life and limit growth opportunities. New funding would be available to address these needs and also help solve the “orphaned road” problem that has been a concern for many for far too long.

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.

We express our genuine gratitude to the forward-thinking sponsors of Senate Bill 145 and look forward to supporting them and their colleagues in the North Carolina House. Partnerships between localities and our state lawmakers, as demonstrated by the filing of this bill, are why our state continues to enjoy the success it has achieved.

Statement from Mayor Vi Lyles:

I want to thank the many people who worked so hard to get us to this point and the members of the Metropolitan Transit Commission for their continued work. I also want to express my gratitude to Senator Vickie Sawyer, Chair of the Transportation Committee; Senators Bill Rabon, Chair of the Transportation Committee; and David Craven, Chair of the Finance Committee for introducing this bill and understanding the importance of this work to our region and our state.

In a community that presents opportunity, where more people are arriving every day, this will provide infrastructure to support a good quality of life. It will help secure a more prosperous and better future through transportation investments.

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.

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.

Statement from Charlotte Regional Business Alliance:

The Charlotte business community strongly supports legislation filed today at the North Carolina General Assembly to expand our region’s transportation system.

As one of the fastest growing regions in the United States, with 117 people moving to the area every day, we must stay ahead of other metros and keep pace with our population growth to ensure people have mobility choices and we can provide for the reliable movement of goods and services.

Legislators are stepping up to lead the effort at the General Assembly. Senators Bill Rabon, David Craven, and Vickie Sawyer have filed legislation to advance the transportation plan. Senate President Pro Tempore Phil Berger has also been a leading pro-growth voice for North Carolina. We appreciate their leadership.

The legislation will allow the people of Mecklenburg with an opportunity to vote yes for much greater investments in roads, transit, and bus systems to ensure we maintain the outstanding quality of life we know is threatened by increasing congestion. Having a transportation system that meets the needs of our growing population and ensures we remain attractive for businesses to grow and relocate here is critical to our sustained economic vitality.

We look forward to working with the North Carolina Senate and lawmakers in the North Carolina House to continue to move the transportation plan forward and proactively plan for the continued growth and prosperity of our region. By 2050, the region’s population is expected to swell nearly 50% to 4.6 million.

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