A North Carolina Senate bill has been filed to advance funding for Charlotte’s expanding transit system through a proposed one-cent tax hike. The measure, introduced as Senate Bill 145 by Sens. Vickie Sawyer, R-Mecklenburg; Bill Rabon, R-Brunswick; and David Craven, R-Anson, must first gain approval from the Republican-led General Assembly before Mecklenburg County voters can decide on the increase. 

Key provisions of the bill would authorize the Mecklenburg County Board of Commissioners to instruct election officials to place a sales tax referendum on the ballot, asking voters to choose whether they are “for” or “against” a 1% sales and use tax. If approved the General Assembly would create a new public transportation authority for the county with tax revenues distributed to each municipality in the county using a formula outlined in the bill. SB 145 mandates that 40% of the funds be allocated to road projects and 60% to public transportation. 

Sawyer told the Carolina Journal North Carolina’s transportation funding is strained, delaying key projects. 

“The transportation infrastructure in NC is woefully underfunded. Inflation, over programing projects on the STIP (State Transportation Improvement Program) and Hurricane Helene disaster recovery are all stress points on NCDOT’s ability to deliver long promised projects, especially in fast growing areas”, said Sawyer. 

The legislative findings in the bill claim the Charlotte region’s population will grow by 50% from 2,600,000 today to 4,100,000 in 2045. 

Sawyer believes voters should have a say in local transportation projects. 

 “Mecklenburg County is championing a way to allow for voters to decide on locally administered transportation projects that include both road construction and light rail,” said Sawyer. “As a resident that uses Charlotte’s roadways, I see firsthand the need for local governments in fast growing areas to administer transportation projects for the health and prosperity of their communities.” 

Transportation is crucial to North Carolina’s economy, enabling economic activity and serving as a major industry itself. Research shows that access to transportation enhances economic mobility, and smart investments can boost productivity and living standards by reducing costs.

However, traffic congestion is a significant issue, costing the U.S. economy over $120 billion annually through lost time, fuel expenses, and reduced productivity. Studies link congestion to lower job satisfaction. The problem is most severe in fast-growing urban areas, including North Carolina, where congestion can slow or even stop employment growth.

SB145 is currently before the Committee on Rules and Operations of the Senate.