Potential Sales Tax Ballot Measure

Board of Directors

June 5, 2014

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Overview

• SVLG polled voters on a 30-year, ¼ cent sales tax

that would generate $3.2 to $3.7 billion for:

- Street maintenance/pothole repair

- Increasing service for seniors and disabled riders

- Easing congestion

- Increasing Caltrain service

- Extending BART to San Jose/Santa Clara

• Initial Poll result:

- More than 2/3s Favorable

- Undecided <5%

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Going to the Ballot

• VTA was formed as the transportation authority for

Santa Clara County to coordinate, plan and fund

transportation projects.

• VTA and SVLG have a history of close coordination

with ballot measures.

• Recommend VTA places the measure on ballot

Previous Transportation Tax Measures

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Year Term Increment Program Total $ County/

VTA

1976 In perpetuity ½ cent Transit operations $4.0

billion*

VTA

1984 10-year ½ cent Roadway $1.8

billion

County

1996 9-year ½ cent Roadway and transit $2.1

billion

County

2000 30-year ½ cent Transit projects

including BART

extension

$1.1

billion*

VTA

2008 30-year 1/8 cent Transit operations for

BART extension

$42.0

million*

VTA

2010 $10 fee/

registered

vehicle

Roadway $28.9

million*

VTA

*Inception through FY2013, June 30, 2013

Statewide Sales Tax Components

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Purpose Rate

• State General Fund 4.19%

- Includes 0.25% for Prop. 30

• Local Revenue Fund 2011 1.06%

• Local Revenue Fund 0.50%

• Economic Recovery Fund 0.25%

• Bradley-Burns 0.75%

• Transportation Rate (TDA) 0.25%

• Local Public Safety Fund 0.50%

Total 7.50%

Santa Clara County Sales Tax Components

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Purpose Rate

• 1976 Measure A 0.50%

• 2000 Measure A 0.50%

• 2008 Measure B 0.125%

• 2012 County General Fund 0.125%

Total 1.25%

• Revenue and Taxation Code states local agencies

can add up to 2% over the state base rate of 7.50%

for local transactions and use taxes.

• 7.50% State +1.25% County = 8.75%

Neighboring County Taxes

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• Alameda and San Mateo Counties also have sales

taxes for transportation:

- Alameda County: ½ cent sales tax, passed in 2000.

An effort to double the tax failed in November 2012

by 0.14%. Alameda County plans to pursue an

extension of the tax in November 2014 as well as a

brand new ½ cent, 30-year sales tax.

- San Mateo County: ½ cent sales tax, reauthorized in

2004. Expires in 2033.

VTP 2040

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• The proposed ballot measure derives from the

Valley Transportation Plan 2040, which:

- is the long-range transportation plan for Santa

Clara County;

- is updated every 4-5 years to coincide with the

Metropolitan Transportation Commission’s

Regional Transportation Plan

- identifies projects that can compete for federal,

state, regional and local funds

- includes projects organized in Program Areas

by mode.

VTP Process

• VTA collaborates with cities, the County and

other stakeholders to collect a list of projects.

• Projects are submitted through the cities and

county.

• Projects are then submitted to VTA for inclusion

in the Valley Transportation Plan, approved by the

Board of Directors.

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Potential Distribution

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Highway &

Expressway

Transit

Local Program

- Street repair

- Bike/ped

- Advanced

technologies

Next Steps

• Until August 7: VTA staff to work with SVLG,

stakeholders, public to refine expenditure plan.

• June 26: Tentative Board meeting to consider

ballot initiative.

• August 7: VTA Board of Directors Decision on

November 2014 ballot.

• August 8: Deadline for placing measure on ballot.

• November 4: Vote.

• July 2015: Sales tax, if successful, goes into

effect.

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