Proposed Sales Tax Hike Could Boost Funding For Transportation

DENVER, CO -- From the Colorado Independent by John Herrick. A coalition of local leaders backed by the Denver Metro Chamber of Commerce wants voters to approve a sales tax increase on the November ballot to pay for projects like the widening of Interstate 25 and the buildout of bike lanes.

The group filed four ballot measures with the Secretary of State on Thursday that would raise between $500 million and $1 billion for transportation projects, according to the chamber, and allow that money to be used to pay for bonds, which would generate even more upfront cash.

A booming population across the Front Range has created traffic snarls on critical corridors like Interstate 25 as commuters drive to work and Interstate 70 as skiers head to the resorts. According to a 2016 report by Denver Regional Council of Governments, or DRCOG, commuters spend 40 hours per year sitting in traffic. And the U.S. Department of Transportation estimates that drivers spend $287 per year on vehicle repairs and operating costs due to driving on roads that should be fixed.

“Our failure to invest in infrastructure is costing us real money,” said Kelly Brough, president and CEO of the Denver Metro Chamber of Commerce. “Drivers in the Denver metro area are paying more than $2,000 a year because of traffic congestion delays, damage to vehicles, accidents and lost gas efficiency.”

The state doesn’t have enough money to address the issue. The Department of Transportation estimates a 10-year funding backlog of about $9 billion, and about a $25 billion funding gap over the next 25 years, according to its 2016 annual report. And the state’s gas tax, which helps fund transportation projects, has not increased since 1991.

The group is seeking a sales tax increase of 0.5 percent, 0.62 percent or 1 percent. The highest increase equals 10 cents on a $10 purchase. Another proposal would increase the sales tax by 0.5 percent and require that $150 million is transferred from the General Fund each year to pay for state and local transportation projects.

Read more at The Colorado Independent

Image: Weekday morning traffic congestion on I-25 northbound in Denver. Photo by John Herrick