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WHERE'S THE MONEY?
If Triangle political leaders call for big improvements in transit service over the next 12 years, they will have to come up with new local funds to cover a big share of the cost.
Unless they cut spending for schools, public health or other current services, local officials will have to increase existing taxes or levy new ones to pay for transit. It isn't clear how much federal and state money will be available.
Here are some local revenue options. These examples are recent estimates, in 2007 dollars, of how much transit money Wake, Durham and Orange counties could raise in one year:
Sales tax by one-half cent$82.1 million
Vehicle registration feeby $5$5 million
Rental car tax by 5 percent$8.7 million
Real estate property tax by 0.05 percent$45.7 million
Vehicle property tax by 0.05 percent$5 million
Real estate transfer tax by 0.4 percent$57.8 million
Gas & diesel tax by 5 cents per gallon$31.9 million
Income tax by 0.25 percent$43.8 million
Higher rates would generate more money. More money would be generated if neighboring counties also levied transit taxes.
In some cases, counties would need authorization from the General Assembly to levy the new taxes.
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