DT district to get more than twice
If the $639,000,000.00 tax increase passes on November 12, the money for streets will not be spent equally around the City of Tulsa.
In fact, Council District 4 is slated to get more than double what will be spent in Districts 3, 5, 6 and 9 (see related chart).
District 4 is the big winner with $52,655,000.00 allotted for streets. About $19,000,000.00 is scheduled for street work downtown in District 4. The Downtown amount alone is only $5,700,000.00 smaller than the entire budget for District 3 ($24,695,000.00). And Districts 5 ($25,320,000.00) and 6 ($25,290,000.00) are similarly low.
In the past 15 or so years, Tulsa taxpayers have paid for nearly half a billion dollars for publicly financed improvements in Downtown Tulsa.
City officials have said that about 70 percent of the sales tax increase will go to street repair, widening projects and bridges, among others.
The widening projects are:
- Gilcrease Museum Road from Pine Street to Admiral Boulevard ($12,000,000.00)
- 81st Street from Tacoma to Maybelle in South Tulsa ($8,300,000.00)
- The intersection of 81st Street and Elwood Avenue in South Tulsa ($6,000,000.00)
- 91st Street from Memorial Drive to Mingo Road in South Tulsa ($10,700,000.00)
- Widen 81st Street from Harvard Avenue to Yale Avenue in South Tulsa ($15,000,000.00)
- The intersection of 101st Street and South Sheridan Road ($12,000,000.00).
Tulsans pay a sales tax of 8.517 percent with 4.5 percent going to the state, .367 percent to Tulsa County and 3.65 percent to the city.
The State of Oklahoma has an average 8.92 percent sales tax, according to the Tax Foundation.
The tax increase – if approved – would follow on the heels of the sales tax hike in 2013, which will expire. Tulsa voters first approved this sales tax increase in 2013, which totaled $918,700,000.00.
Sales tax is one of the most regressive forms of taxation because it disproportionately affects the poor, who pay a greater percentage of their income on taxable items.
There will be three propositions on the November 12 ballot:
- Streets and transportation (about 70 percent);
- Public facilities, parks, public safety (vehicles)
- Creation of a “rainy day” fund.
The tax increase package includes a “temporary sales tax” for streets, infrastructure, city equipment and facilities; a 0.05 percent permanent sales tax for a Rainy Day Fund; and property-tax financed bonds.
One of the most controversial proposals would be the “Community Development Priority Projects.” This would be a $9,000,000.00 “slush fund” that would allow city councilors to spend a $1,000,000.00 in each of the city’s nine districts at their request. There are some restrictions and projects are subject to a vote of the Council.
In terms of a Rainy Day fund, Tulsa is already required to maintain a cash balance in case of a shortfall. Tulsans voted in 2010 to change the City Charter to allow creation of a Rainy Day fund and it has about $1 million in it currently. That money can only be spent if revenue projections for the next fiscal year are below the previous year. The November 12 proposal repurposes 0.05 percent of the city sales tax to the fund on a permanent basis. It has been projected to raise about $5,000,000.00 a year for the Rainy Day Fund.
The sales tax rate in the Tulsa city limits will remain the same – 3.65 percent (8.517 percent overall) – because the last “temporary sales tax” will expire.
Property taxes in Tulsa city limits will go up. The City of Tulsa gets about 16 percent of property tax collected in the Tulsa city limits. Property tax received by the city is used for payment of General Obligation Bond principal and interest and for judgments issued by a court against the city.
The Sales Tax Overview Committee, made up of 21 citizens, meets monthly to glance over staff reports on how money is being spent. They report to the City Council.