FINANCING OPERATING SUBSIDIES FOR URBAN MASS TRANSIT SYSTEMS: AN ANALYSIS OF STATE AND LOCAL TAX OPTIONS

The purpose of this report is to analyze the various taxing alternatives open to state and local governments when faced with the problem of covering deficits of their urban mass transit systems. The format of the study is to: (1) outline the financial condition of the urban mass transit industry; (2) present the issue of operating subsidies; (3) present data on the state and local government response; (4) analyze state and local taxes used and not used for financing subsidies; and (5) provide a brief outline of the Federal role in the issue. According to the author, the financial condition of the urban transit industry guarantees that operating deficits will continue and increase at progressive rates. The author finds that state governments rely mainly on retail sales taxes and specific excise taxes to meet operating deficits of the transit industry, while local governments rely mainly on property taxes. By definition these taxes tend to fall primarily upon a class of persons that are supposed to benefit from an urban transit subsidy program. Alternatives to the present taxing mechanisms are presented. Conclusions and recommendations are furnished. A bibliography is included. /UMTA/

• Supplemental Notes:
  • Sponsored by Urban Mass Transportation Administration and American Transit Association.
• Corporate Authors:

  Consortium of Universities

  1717 Massachusetts Avenue, NW
  Washington, DC  United States  20036
• Authors:
  • DeBeer, A M
• Publication Date: 1974-6

Media Info

• Pagination: 56 p.

Subject/Index Terms

• TRT Terms: Economics; Energy; Federal government; Finance; Financing; Local government; Operating costs; Public transit; State government; State taxation; Subsidies; Taxation; Transportation
• Geographic Terms: United States
• Subject Areas: Economics; Energy; Finance; Transportation (General);

Filing Info

• Accession Number: 00084749
• Record Type: Publication
• Source Agency: Urban Mass Transportation Administration
• Report/Paper Numbers: UMTA-DC-11-0003-74-4
• Files: TRIS, USDOT
• Created Date: May 7 1981 12:00AM