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REPORT: SALES TAX HAS NOT BEEN MBTA LIFELINE, AS ENVISIONED

By Michael P. Norton
STATE HOUSE NEWS SERVICE

JAN. 10, 2018.....The MBTA's share of sales tax revenues has fallen short of original projections and failed to deliver the stable funding source lawmakers envisioned when they overhauled the agency's finances in 2000, according to a new report.

Sales tax revenues represented 60 percent of total MBTA revenue in 2003, but declined to a 48 percent share in fiscal 2017, despite an increase in the sales tax rate from 5 percent to 6.25 percent in 2009, the Massachusetts Budget and Policy Center said in its report.

An advancing 2018 ballot question would roll that sales tax rate back to 5 percent, while a constitutional amendment marked for the ballot this year would impose a 4 percent surtax on households with income above $1 million, with the resulting revenues targeted for education and transportation.


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