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Potential Sales Tax Ballot Measure
Board of Directors
June 5, 2014
2
Overview
• SVLG polled voters on a 30-year, ¼ cent sales tax
that would generate $3.2 to $3.7 billion for:
- Street maintenance/pothole repair
- Increasing service for seniors and disabled riders
- Easing congestion
- Increasing Caltrain service
- Extending BART to San Jose/Santa Clara
• Initial Poll result:
- More than 2/3s Favorable
- Undecided <5%
3
Going to the Ballot
• VTA was formed as the transportation authority for
Santa Clara County to coordinate, plan and fund
transportation projects.
• VTA and SVLG have a history of close coordination
with ballot measures.
• Recommend VTA places the measure on ballot
Previous Transportation Tax Measures
4
Year Term Increment Program Total $ County/
VTA
1976 In perpetuity ½ cent Transit operations $4.0
billion*
VTA
1984 10-year ½ cent Roadway $1.8
billion
County
1996 9-year ½ cent Roadway and transit $2.1
billion
County
2000 30-year ½ cent Transit projects
including BART
extension
$1.1
billion*
VTA
2008 30-year 1/8 cent Transit operations for
BART extension
$42.0
million*
VTA
2010 $10 fee/
registered
vehicle
Roadway $28.9
million*
VTA
*Inception through FY2013, June 30, 2013
Statewide Sales Tax Components
5
Purpose Rate
• State General Fund 4.19%
- Includes 0.25% for Prop. 30
• Local Revenue Fund 2011 1.06%
• Local Revenue Fund 0.50%
• Economic Recovery Fund 0.25%
• Bradley-Burns 0.75%
• Transportation Rate (TDA) 0.25%
• Local Public Safety Fund 0.50%
Total 7.50%
Santa Clara County Sales Tax Components
6
Purpose Rate
• 1976 Measure A 0.50%
• 2000 Measure A 0.50%
• 2008 Measure B 0.125%
• 2012 County General Fund 0.125%
Total 1.25%
• Revenue and Taxation Code states local agencies
can add up to 2% over the state base rate of 7.50%
for local transactions and use taxes.
• 7.50% State +1.25% County = 8.75%
Neighboring County Taxes
7
• Alameda and San Mateo Counties also have sales
taxes for transportation:
- Alameda County: ½ cent sales tax, passed in 2000.
An effort to double the tax failed in November 2012
by 0.14%. Alameda County plans to pursue an
extension of the tax in November 2014 as well as a
brand new ½ cent, 30-year sales tax.
- San Mateo County: ½ cent sales tax, reauthorized in
2004. Expires in 2033.
VTP 2040
8
• The proposed ballot measure derives from the
Valley Transportation Plan 2040, which:
- is the long-range transportation plan for Santa
Clara County;
- is updated every 4-5 years to coincide with the
Metropolitan Transportation Commission’s
Regional Transportation Plan
- identifies projects that can compete for federal,
state, regional and local funds
- includes projects organized in Program Areas
by mode.
VTP Process
• VTA collaborates with cities, the County and
other stakeholders to collect a list of projects.
• Projects are submitted through the cities and
county.
• Projects are then submitted to VTA for inclusion
in the Valley Transportation Plan, approved by the
Board of Directors.
9
Potential Distribution
10
Highway &
Expressway
Transit
Local Program
- Street repair
- Bike/ped
- Advanced
technologies
Next Steps
• Until August 7: VTA staff to work with SVLG,
stakeholders, public to refine expenditure plan.
• June 26: Tentative Board meeting to consider
ballot initiative.
• August 7: VTA Board of Directors Decision on
November 2014 ballot.
• August 8: Deadline for placing measure on ballot.
• November 4: Vote.
• July 2015: Sales tax, if successful, goes into
effect.
11

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Proposed Sales Tax Ballot Measure

  • 1. Potential Sales Tax Ballot Measure Board of Directors June 5, 2014
  • 2. 2 Overview • SVLG polled voters on a 30-year, ¼ cent sales tax that would generate $3.2 to $3.7 billion for: - Street maintenance/pothole repair - Increasing service for seniors and disabled riders - Easing congestion - Increasing Caltrain service - Extending BART to San Jose/Santa Clara • Initial Poll result: - More than 2/3s Favorable - Undecided <5%
  • 3. 3 Going to the Ballot • VTA was formed as the transportation authority for Santa Clara County to coordinate, plan and fund transportation projects. • VTA and SVLG have a history of close coordination with ballot measures. • Recommend VTA places the measure on ballot
  • 4. Previous Transportation Tax Measures 4 Year Term Increment Program Total $ County/ VTA 1976 In perpetuity ½ cent Transit operations $4.0 billion* VTA 1984 10-year ½ cent Roadway $1.8 billion County 1996 9-year ½ cent Roadway and transit $2.1 billion County 2000 30-year ½ cent Transit projects including BART extension $1.1 billion* VTA 2008 30-year 1/8 cent Transit operations for BART extension $42.0 million* VTA 2010 $10 fee/ registered vehicle Roadway $28.9 million* VTA *Inception through FY2013, June 30, 2013
  • 5. Statewide Sales Tax Components 5 Purpose Rate • State General Fund 4.19% - Includes 0.25% for Prop. 30 • Local Revenue Fund 2011 1.06% • Local Revenue Fund 0.50% • Economic Recovery Fund 0.25% • Bradley-Burns 0.75% • Transportation Rate (TDA) 0.25% • Local Public Safety Fund 0.50% Total 7.50%
  • 6. Santa Clara County Sales Tax Components 6 Purpose Rate • 1976 Measure A 0.50% • 2000 Measure A 0.50% • 2008 Measure B 0.125% • 2012 County General Fund 0.125% Total 1.25% • Revenue and Taxation Code states local agencies can add up to 2% over the state base rate of 7.50% for local transactions and use taxes. • 7.50% State +1.25% County = 8.75%
  • 7. Neighboring County Taxes 7 • Alameda and San Mateo Counties also have sales taxes for transportation: - Alameda County: ½ cent sales tax, passed in 2000. An effort to double the tax failed in November 2012 by 0.14%. Alameda County plans to pursue an extension of the tax in November 2014 as well as a brand new ½ cent, 30-year sales tax. - San Mateo County: ½ cent sales tax, reauthorized in 2004. Expires in 2033.
  • 8. VTP 2040 8 • The proposed ballot measure derives from the Valley Transportation Plan 2040, which: - is the long-range transportation plan for Santa Clara County; - is updated every 4-5 years to coincide with the Metropolitan Transportation Commission’s Regional Transportation Plan - identifies projects that can compete for federal, state, regional and local funds - includes projects organized in Program Areas by mode.
  • 9. VTP Process • VTA collaborates with cities, the County and other stakeholders to collect a list of projects. • Projects are submitted through the cities and county. • Projects are then submitted to VTA for inclusion in the Valley Transportation Plan, approved by the Board of Directors. 9
  • 10. Potential Distribution 10 Highway & Expressway Transit Local Program - Street repair - Bike/ped - Advanced technologies
  • 11. Next Steps • Until August 7: VTA staff to work with SVLG, stakeholders, public to refine expenditure plan. • June 26: Tentative Board meeting to consider ballot initiative. • August 7: VTA Board of Directors Decision on November 2014 ballot. • August 8: Deadline for placing measure on ballot. • November 4: Vote. • July 2015: Sales tax, if successful, goes into effect. 11