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Local Transportation Sales Taxes: California's Experiment in Transportation Finance

Author

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  • Crabbe, Amber
  • Hiatt, Rachel
  • Poliwka, Susan D
  • Wachs, Martin

Abstract

In the mid-1980's, the California legislature began authorizing sales taxes for transportation projects in individual counties. Since then, residents of 18 counties - representing 80% of the state's population - have voted to raise their sales taxes for limited periods to pay for county and city ground transportation improvements. Collectively, these "local transportation sales taxes" (LTST's) generate roughly$2 billion per year for the support of capital investments in new highways and transit systems and the maintenance and operation of existing ones. Since their inception these taxes have been the fastest-growing source of revenue for transportation in California and have become a major tool with which local civic and political leaders bypass obstacles in the state's system of transportation finance and decision-making.

Suggested Citation

  • Crabbe, Amber & Hiatt, Rachel & Poliwka, Susan D & Wachs, Martin, 2002. "Local Transportation Sales Taxes: California's Experiment in Transportation Finance," University of California Transportation Center, Working Papers qt0hj2r88h, University of California Transportation Center.
    • Handle: RePEc:cdl:uctcwp:qt0hj2r88h
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    Cited by:

    1. Robert Hannay & Martin Wachs, 2007. "Factors influencing support for local transportation sales tax measures," Transportation, Springer, vol. 34(1), pages 17-35, January.
    2. Dill, Jennifer & Weinstein, Asha, 2007. "How to pay for transportation? A survey of public preferences in California," Transport Policy, Elsevier, vol. 14(4), pages 346-356, July.

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    Keywords

    Social and Behavioral Sciences;

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