Section IV. How to Find More Information
1. Introduction to Resources
The following set of resources provides more detailed information on the current transportation network in Santa Cruz County, current funding plans and organizations involved locally on transportation issues.
2. Potential New Funding Sources for Our Transportation System
In order to fund high priority projects and maintain the existing system, the Santa Cruz County community will need to identify and consider a variety of funding ideas. It is estimated that an extra $150 million is needed to bring the local street and road system into good condition. At least $300 million in new funds would be needed to widen Highway 1 between Santa Cruz and Aptos. In total, local transportation providers have identified nearly $2 billion in projects that cannot be funded without generating new funding sources. Other areas of the state have considered new sources such as taxes, tolls, and traffic impact fees. The following is a list of some of the different taxes and fees used by other areas to raise funds for transportation.
Sales Taxes:Can vary in rate (¼-cent and ½-cent are most common) and length (10, 20, and 30-year increments are most common). Some transportation sales taxes are permanent. Sale tax increases without a specific funding plan require approval by a simple majority of the voters, but are difficult to pass. Sales tax increases for specific projects/programs, such as transportation expenditure plans, require an affirmative vote of two-thirds of voters.
Gas Taxes: Applied to each gallon purchased. Requires special legislation. Typically most effective when assessed in several adjacent counties, so drivers do not simply buy fuel in a nearby county to avoid the tax. Require approval by two-thirds of voters in affected jurisdictions.
Regional Traffic Impact Fees (Developer Fees): Assessed on new developments based on the estimated amount of traffic a particular new development would generate on the regional transportation system or the amount of benefit a property owner receives. The money collected can only be used to fund the portion of a regional project that mitigates the impact caused by the development. A "nexus" study must be done to substantiate the link between the fee and developments. The fee cannot be used to correct existing deficiencies.
Local Traffic Impact Fees: Collected by most local jurisdictions in Santa Cruz County, focused on impacts on local transportation system. Require City and/or County ordinance. Could be increased to address additional impacts of growth.
Parcel Tax/Property Tax: Need to establish nexus to project benefits. Study would need to be done to establish costs. Would require two-thirds vote of impacted properties.
Transient Occupancy Tax (TOT-Hotel Tax): Assessed on hotel, motel stays. Requires approval by two-thirds of voters.
Amusement Tax: A tax levied on the admissions price to places of amusement, entertainment, and recreation. Amusements can include such things as movie theaters, bowling alleys, golf courses, county fairs, and amusement parks. The amusement tax is considered a tax on patrons, even though it is collected from the operators of the amusement.
Toll Roads/Congestion Pricing: Either the use of a facility would be subject to a toll or there would be a fee for using it during certain times of the day. Requires legislation and special equipment to track use of the facility.
Vehicle Registration fee: Assessed on each vehicle registered. Requires state legislation.
Payroll tax: There could be a fee collected through paychecks similar to Portland and New York City to pay for transportation improvements.
Transit Fares: Increasing transit fares requires approval by the Santa Cruz Metropolitan Transit District Board. Increased fares generally result in decreased ridership.
Examples of Some Funding Options used in Other Communities to Generate New Revenues for Transportation Projects*
|
Potential Revenue Source |
Estimate Revenues That Could be Generated Per Year in Santa Cruz County (in 2006 dollars) |
|
Local Sales Tax · ¼ cent sales tax · ½ cent sales tax |
$7.5 million $15 million |
|
Local Option Gas Taxes · 5 cents/gallon tax · 10 cents/gallon tax |
$7.5 million $15 million |
|
Regional Traffic Impact/Developer Fees · Per unit/square foot |
TBD based on Nexus Study |
|
Parcel Tax/Property Tax |
Varies |
|
Transient Occupancy Tax (TOT - hotel tax) · Additional 1 percent |
$850,000 |
|
Toll Roads/congestion pricing |
Varies |
|
Payroll tax |
Varies |
|
Vehicle Registration Fee · $5 per vehicle |
$1 million |
|
Increased Traffic and Parking fines/fees |
Less than $100,000 |
|
Amusement Tax |
Varies |
|
Transit Fares · 50 cent increase |
$100,000 |
|
Bicycle License Fees · current fees=$0-6.50/jurisdiction |
Minimal (Less than $10,000/year) |
* Information on existing funding sources for transportation is available in Chapter 4 of the Regional Transportation Plan (RTP)