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Senate advances bill allowing counties to vary transit share of new local option sales tax
Summary
Senate moved House Bill 183 to third reading after debate. The substitute allows counties to allocate between 10% and 40% of revenue from a quarter-cent local sales tax to local transit districts (rather than a fixed 40%), letting counties and cities use remaining revenue for highways and other needs.
Senate consideration of House Bill 183 focused on the distribution formula for a county option quarter-cent local sales-and-use tax for transportation. Senator Van Tassel told colleagues the substitute clarifies how new revenue is shared: counties may allocate between 10 and 40 percent to local transit districts, with remaining proceeds available for cities and county highway needs.
"Last year, we passed HB 362 that permitted counties to allow a citizen's vote on a sale, a quarter cent local sales tax for transportation," the sponsor said, explaining the substitute's adjustments were made after counties reported the prior-fixed 40 percent split discouraged some ballot measures. Senator Van Tassel said the change was intended to give local officials flexibility to direct more revenue to highways where needed while allowing a minimum transit share.
Senators asked procedural and allocation questions, including whether distribution uses the existing B and C formula; the sponsor said distribution would be by agreement. The Senate recorded the roll-call vote and read the bill for a third time; the floor tally reported in the transcript was 18 yeas, 4 nays and absent votes, and the bill was scheduled for further consideration.
Next steps: HB 183 will continue through the legislative process with a potential conference and local implementation details to be set by counties and cities if the ballot measure is adopted.
