Plano City Council unanimously approved a resolution to support a quarter-cent reduction in the sales and use tax allocated to Dallas Area Rapid Transit (DART). The reduction would amount to approximately $30 million annually.
The resolution proposes capping all sales and use tax collections by the agency at $870.8 million, the projected amount for the 2023-24 fiscal year. Plano currently contributes $115 million in sales and use taxes to DART based on the required one-cent contribution. The city is also seeking greater transparency regarding DART's spending and the benefits received by member cities.
"The city of Plano does not have the authority to unilaterally reduce this tax rate exclusively for Plano," DART told Local Profile. "Any action by the 15-member DART board would impact all service area cities. Any reduction in the voter-approved 1% use tax that funds Dallas Area Rapid Transit would have devastating effects on the most vulnerable populations in all cities that rely on DART to access jobs, health care, education and more."
Council members noted that ridership remains significantly below pre-pandemic levels, despite record increases in the city’s sales and use tax revenues. The issue was raised in April of last year when Plano leaders called for greater transparency from DART. In response, DART approved a plan to hire an outside consultant to review service costs and prepare a report for its 13 member cities.
Several speakers during the council meeting on June 24, 2024, said the reduction would have consequences when it comes to safety and quality of rides. Council members did not comment before the vote.
Lowering the sales tax contribution requires approval from the DART board and voters. If the board approves the reduction, an election will be held in the transit authority’s 13 member cities. Voters will then decide how to reallocate the quarter-cent reduction from the sales tax contribution to DART, with the possibility of reallocating the funds back to the transit authority.
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