Posted: 08/21/08 07:31, Edited: 08/21/08 07:33
by Dave Mindeman
Here's something you won't hear much about. The 1/4 cent sales tax used for transit is being used to lower other taxes. Huh?
The new board that decides on distribution called the Counties Transit Improvement Board (CTIB), has made its first committments. They focused on two projects: The Central Corridor and the Hiawatha Rail Line.
But here is where it gets interesting.
The money dedicated to Central Corridor will have the added benefit of giving that project an advantage when making proposals for Federal Transportation money. In the past, Federal money looks for local committment when awarding that money and Minnesota's committment has always been a question mark. Not any more. It is important to note that these are tax dollars already in the treasury...and they will be going somewhere. So why not Minnesota?
Secondly, the dedication of funds to the Hiawatha Line will also...(wait for it...let's quote):
The board also voted to spend sales tax money to pay for the Hiawatha light rail line, which means the Hennepin County property taxes that currently pay for Hiawatha won't be needed.
Did you get that Phil Krinkie? A reduction in taxes.
For much too long, the Minnesota transit picture has been a patchwork quilt of funding and projects. This new board created by the Transportation Bill will not only give our transit system a jump start but it will make those tax dollars more efficient.
Maybe Minnesota will be joining the 21st Century after all.
This is a bad deal. A local project with local benefits - best funded locally. This ensures accountability for our elected officials. An approach that ultimately serves to reduce the levels at which we feed the pig (government).
Given that all sides agree the taxpayers subsidize mass transit to the rate of 50% (from proponents of mass transit) to 63% (from governmental spending watchdogs), this move ensures maximum costs on taxpayers will be absorbed.
I seriously doubt there will be any reduction in property taxes paid by the effected property owners. Maybe they will see what politicians like to refer to as a "cut" in their property taxes. That means, the increases in their property taxes will be 'less than they would have been'.