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.
Already a subscriber? Login to continue reading...
Get the Rest of the Story!
State House News Service subscribers include media outlets, corporations, non-profits and law offices of every size. You may request a free 21-day trial of the News Service for your company by submitting the form below.
If you are already a subscriber and need access to SHNS, please send an email to firstname.lastname@example.org or call 617-722-2439.
Note to political campaigns: We do not accept trial requests from campaigns from June 24 through Election Day. However, we would be happy to start a pre-paid subscription for your campaign (except for constitutional offices, congressional offices and statewide campaigns) at a deeply-discounted rate of $22/week, paid through the election. Simply email Virginia Cummings to set up this subscription; she'll send you further instructions.