Monday, August 30, 2010

Mission's Traffic Tax

I've had a chance to digest the new, yet controversial Mission "driveway tax" which isn't really a driveway tax at all.

First things first, while I generally applaud the coverage of the Star on development issues, they did a really poor job covering this issue. They adopted the "driveway tax" moniker, which is really misleading since its not a tax on driveways at all (one could conceivably still get assessed a fee even if one removed the driveway from their property). What it is is a "traffic usage fee" - an assessment based on the amount of traffic a property is generating.

The Star also failed to mention that the city of Mission cut property taxes by two mills, cut the city budget by 24% and froze city employee salaries. Well, they did mention it, but in a completely separate article. This amounted to tossing red meat to the anti-tax readers who predictably reacted violently to this talk of a new "driveway tax", thinking those out-of-control spenders at Mission were all-too happy to tax Mission businesses into submission.

Anyway, onto the substance of the tax itself. Like most people, I don't like new taxes, but I also realize that they are the price we pay for having a civilized society, and fund many of the services and amenities that make the areas we live attractive places to live. And if I have to choose between a property tax, a sales tax, and a "traffic usage fee", I'll glad choose the traffic usage fee, particularly if its being used to fund roads. It makes perfect sense to link traffic usage to road maintenance costs in an effort to get users to pay their own costs. It is also less regressive than a sales tax, and much more stable than a property tax or sales tax (meaning in dire times, the city is less likely to have to require an increase!)

Additionally, it may also get Mission businesses to think about the traffic they are generating. Mission is using funds from the fee to support the Jo Express Bus that will run from Metcalf to the Country Club Plaza. Businesses may want to start thinking about how they can better accommodate mass transit, encourage patrons to walk to their establishments, and reduce the size of their massive parking lots, if nothing more than to reduce their "traffic usage fee."

Mission has suffered some setbacks in their Gateway Project at the former Mission Center site, but I am encouraged that they are still pursuing modest steps to achieve their vision of a more pedestrian-friendly downtown district.

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