Steve Pittard Chief Financial Officer June 16 2016 Transit Revenues Primary Sources Transportation Trust Fund TTF 1986 Session Recordation Taxes 2007 amp 2015 Session Tax on Insurance Premiums 2007 Session ID: 656118
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Slide1
Commonwealth Public Transportation Funding
Steve Pittard
Chief Financial Officer
June 16, 2016Slide2
Transit Revenues -
Primary Sources
Transportation Trust Fund (TTF) – 1986 Session
Recordation Taxes – 2007 & 2015 Session
Tax on Insurance Premiums – 2007 Session
Retail Sales and Use Tax (SUT) – 2013 Session
Sales Tax on Fuel (Dedicated) – 2015 Session
Various Federal Transit Administration (FTA)
programsSlide3Slide4
1986 Session TTF
Major Revenue
Sources
Motor vehicle fuel tax
Motor vehicle sales and use tax
Motor vehicle license fees
Retail sales and use taxSlide5
1986 Session TTF
FY 2017 - $149.8 M
Modal split percentage last revised in 1999
4.2% Port; 2.4% Aviation; 78.7% to
VDOT
14.7
% to the Mass Transit Trust Fund (MTTF) -
§58.1-638.A
.
Transit share allocated as follows:
Minimum of 72% to transit
operations
Up to 3% for transit special
programs
25% for transit capital projectsSlide6
Recordation TaxesFY 2017 - $45.4 M
Tax on recording real estate transactions
In 2007, $0.02 of the state recordation tax to the MTTF [$0.25 per $100 of value is the total recordation tax]; dedicated to transit operating assistance
In 2015 (HB1887), additional $0.01 redirected from HMOF to transit capital beginning in FY 2017
§58.1-815.4
.Slide7
Transportation Capital
ProjectsRevenue (CPR) Bonds
FY 2017 - $110.0 M
Total bond authorization $3.0 billion
(
§
33.2-365 - 2007)
1/3 of gross insurance premiums tax (2.25%) deposited into the Priority Transportation Fund to provide a revenue stream for the CPR bonds -
§
58.1-2531
A minimum of 20% of the bond proceeds for transit capital consistent with
subdivision A 4 c of
§58.1-638
- the Mass Transit Capital
Fund
DRPT/CTB elected to receive this funding over ten years -$60 million per yearSlide8
Transportation
CPR BondsContinuedOther uses of the bonds include: match to federal funds, revenue sharing funding, statewide or regional projects
$50 million a year for 10 years to match WMATA PRIIA federal funds
Dulles Metrorail also received bond funds from regional projects category
Over 45% of the CPR bonds have been allocated to transit initiatives$600 M transit minimum$500 M State of Good Repair for WMATA
$225 M to the Dulles Metrorail Project
$41 M to the
fixed
g
uideway
initiativesSlide9
Motor Vehicle Fuel Tax
FY 2017 - $33.0 M
3.11% of the revenues dedicated to transit capital ($27.8 M)
0.35% of the revenues dedicated to transit operations ($3.1 M)
0.24% of the revenues dedicated to transit special programs ($2.1 M)
§
58.1-2289
(2015 session)Slide10
Retail Sales and Use Tax
FY 2017 - $77.3 M
0.075% of the general retail sales and use tax to the
MTTF
Minimum of 72% to transit operations
Up to 3% for transit special
programs
25% for transit capital
projects
§
58.1-638.3.
(
2013
Session)Slide11
FTA Revenue
SourcesFY 2017 - $68.1 M
Approximately $26.9 million a year of flexible STP funds (CTB discretion
)
Approximately $41.2 million a year from the various FTA programsFTA 5311 program for rural providers and the FTA 5307 Governor’s Apportionment program for small urban providersSlide12
Marketplace Fairness Act
Impacts
HB2313
-
2013 Session dedicated a portion of the estimated revenues from internet sales taxes to TTFTransit share (14.7%) for FY 2017 was estimated to be $26M
Required legislation at federal level
Increase in sales tax on motor fuels if not passed, but all contingent revenues dedicated to
highways
HB1887
-
2015 Session
redirected
a portion of the increase in the motor fuels tax to transit as well as recordation taxes previously allocated to the
TTF
If Marketplace Fairness Act passes, HB1887 revenues for transit are reversed
Net result is an approximate $22M decrease in transit revenuesSlide13
Commonwealth Transit Revenues
Six Year Forecast
Bond funding ends beginning in 2019
Retail SUT and the 1986 transportation trust fund revenues show some growth
All other sources are relatively flatSlide14
FY 2017 Transit Revenues
by Program
Loss of bond funds will result in a 44% decrease in transit capital fundingSlide15
Transit Capital Allocation Process
Capital program currently uses a tiered prioritization process
Tier 1 at 68% State Share
Rolling stock for replacement or expansion and related items
Tier 2 at 34% State ShareInfrastructure and facilities
Tier 3 at 17% State Share
Support vehicles, shop equipment, spare parts, etcSlide16
Questions
http://www.drpt.virginia.gov/
steve.pittard@drpt.virginia.gov
804-786-5756