Tax & Accounting Blog

08Voters Have Two Options For Metro Funding

Indirect Tax, ONESOURCE, Sales and Use Tax August 9, 2012

Houston voters will have two options on how to fund their metro system moving forward.  The “Metro,” a regional transit agency in charge of buses, the light rail and parks and ride services, has been funded by a one cent sales tax since 1988. Historically, one-quarter of this tax has been shared with Harris County and 15 neighboring cities and towns.  This agreement expires soon and the November ballot proposal will allow voters to choose between two options.  A ‘no’ vote would end the current diversion of money to neighboring cities and Houston’s “Metro” would receive all revenues from the 1.0% sales tax.  A ‘yes’ vote will continue sharing a quarter of the sales tax, but would revise the change revise the current revenue shairing program.