San Antonio Considers Cell Phone Tax to Boost Public Transit Funding

San Antonio Considers New Cell Phone Tax for Public Transit Funding

In a recent discussion that’s sparked quite a bit of conversation around town, San Antonio is exploring a proposal that could impact all of us who rely on cell phones. The VIA Metropolitan Transit is asking the city council for permission to impose a new tax on cell phone services, which could raise up to $8 million a year. The goal? To run more frequent buses within the city.

The Details of the Proposal

The proposed tax would be set at 0.75% on your monthly cell phone bill. For instance, if your bill is $100, you’d be looking at an additional charge of about nine cents. Tom Marks, who oversees governmental relations at VIA, laid out the proposal during a presentation to the San Antonio City Council’s transportation and infrastructure committee. He noted that transit agencies in nearby cities, including Austin, Dallas, and even Fort Worth, already levy similar taxes, which contributes to their improved public transit options.

However, the backdrop to this proposal is a bit complicated. Recently, the city made the decision to cut its contribution to VIA’s budget, dropping from a planned $10 million next year to just $5 million. This significant reduction is aimed at funding pay raises for firefighters and paramedics as per a new employment contract.

Why VIA Needs More Cash

The anticipated revenue from the proposed tax could make a big difference. VIA’s plans involve a five-year strategy to boost bus service frequency. Currently, a whopping 72% of VIA’s bus routes only arrive every half-hour or longer. Under the “Better Bus Plan,” they aim to increase the number of routes where buses arrive at least every 15 minutes by 6%.

Rod Sanchez, VIA’s senior vice president of planning, emphasized the need for this frequency increase to attract more riders and enhance the overall service experience in San Antonio.

Voices of Skepticism

Despite the apparent benefits, not everyone is on board with this idea. Councilman John Courage, who chairs the committee, raised eyebrows regarding the effectiveness of this tax, recalling past city promises to fund VIA with $10 million annually that haven’t materialized into improved service. He raised concerns about whether VIA has the needed resources and drivers to actually increase service frequency. It seems the agency has been struggling to recruit enough drivers, offering incentives lining in thousands to fill the positions.

Marks and Sanchez assured the committee that VIA has enough buses. They are actively recruiting and looking to boost their workforce. Sanchez was optimistic, stating, “This is a five-year plan. We believe it will work!” Though some hesitation remains, as Councilman McKee-Rodriguez abstained from the vote, suggesting that more information was needed before making a decision.

Taxing Telecommunications

Interestingly, this newfound avenue for generating revenue isn’t entirely new. Sales tax on cell phone services has traditionally been exempt under Texas law since the 1980s, but a loophole allows local governments to lift this exemption. Some municipalities, including parts of Bexar County, have already done so, allowing them to tax telecommunications services.

So far, cities like Leon Valley, Alamo Heights, and others have approved lifting the exemption to assist VIA’s funding. This puts San Antonio in a position to follow suit if the council chooses to approve the measure.

Looking Ahead

This proposal is just part of a larger effort to modernize San Antonio’s public transport system, which includes plans for “advanced rapid transit” routes aimed at enhancing travel efficiency. With two significant lines in the works, VIA hopes to reduce travel time across key parts of the city.

As the city council considers this matter, it’s clear one thing is for certain: San Antonio’s public transport future could depend on a little extra charge on our monthly phone bills.