Governor Davis Opposes Law For Easy Tax Hike To Build New Roads

Environmental Defense praised California’s Governor Davis today for his administration’s opposition to legislation that would make it easier to raise sales taxes to build new highways and roads in California. The Environmental Defense Fund applauded the Governor’s position to oppose lowering the voter threshold to raise sales taxes to pay for new roads and highways because sales tax subsides would fuel sprawl and traffic congestion in California.

The bill, known by its legislative number as SCA3, would amend the state constitution to allow counties to pass sales taxes earmarked for transportation projects with a simple majority vote instead of the two-thirds now required.

“For the last decade, local sales taxes for road and highway construction in several counties throughout the state have caused new traffic and enhanced sprawl growth pressure. By opposing this bill, the Davis Administration is taking steps to reverse that tide,” said Environmental Defense senior attorney Tom Graff. “By opposing SCA3, Governor Davis can help heal past ills caused by using sales taxes for roads and foster a healthier environment for us all by building better communities with less traffic. SCA3 should not pass.”

“This legislation would make it easier to raise sales taxes, which in California are already among the highest in the country, to pay for roads and highways,” said Environmental Defense senior economic analyst, Daniel Kirshner. “Using sales taxes to pay for highway and road construction encourages driving, pollution and sprawl by making driving artificially cheap.”

“The Governor’s opposition to this legislation is a call to California leaders that residents want better transportation options and that the cost of new highway capacity should be paid for by highway users and not subsidized by purchases of other taxable commodities. All recent sales taxes for roads in the Bay Area counties have been rejected by voters,” said Environmental Defense policy analyst Meg Krehbiel.