Questions and Answers About Mountain Line Transit Sales Tax Proposition (Proposition 488)

A blue and yellow Mountain Line Electric Bus, part of the Mountain Line Transit fleet, is parked outdoors on a sunny day with a snow-capped mountain in the background. Proposition 488 has helped fund these eco-friendly buses through the sales tax initiative.

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Questions and Answers

for the Mountain Line Transit Sales Tax Proposition

(Proposition 488)

Why is the City of Flagstaff sending this Mountain Line transit sales tax proposition to the voters?

The existing city transit sales tax funds the Flagstaff bus and paratransit systems known as Mountain Line.  The transit sales tax was first approved Flagstaff voters in 2000.  It was continued and increased by voters in 2008 and continued by voters in 2016.  It expires on June 30, 2030.  If an increase in funding through the existing transit sales tax is not approved, Mountain Line will not be able to provide any transit improvements or expanded service to the community.  Additionally, if the existing transit sales tax is not continued, the Mountain Line system may eventually have to be significantly reduced or eliminated altogether.

Between 2000 and 2008 Mountain Line system ridership grew from 100,000 to 800,000 and has continued to grow from 800,000 in 2008 to over 2,000,000 in recent years. And at the same time, inflation and rising costs have meant it takes more resources to provide service to Flagstaff residents.

The Transit Advisory Committee and the Governing Board of the Northern Arizona Intergovernmental Public Transportation Authority (NAIPTA) adopted an updated 5-year Transit Plan, called Flagstaff in Motion, that recommends a near doubling of service levels to meet growing demands of the community and to support community initiatives for climate action and affordable housing solutions.

The Transit Advisory Committee, the NAIPTA Governing Board and a Citizens’ Advisory Committee made up of local leaders from throughout Flagstaff, carefully considered Mountain Line’s performance, budgets, and results since 2016.  All three groups recommended to the Flagstaff City Council that a proposition to increase the tax rates and continue funding be placed on the November 5, 2024 election ballot.

In March and April 2024, Mountain Line conducted a community outreach program to gain input from Flagstaff residents before placing such a measure on the ballot. The majority of residents who provided input were in favor of expanding access to transit in the community.

What will Prop. 488 fund if it is passed?

Prop. 488 will allow Mountain Line to continue its existing level of service AND add several improvements to the system:

  • MORE Convenience
  • MORE Future Routes
  • MORE Frequent Bus Service
  • MORE Hours of Service
  • MORE Electric Vehicles in the Fleet
  • MORE Freedom to Get Around Flagstaff

This proposition will support Mountain Line’s current service level of 363 days annually, with nine bus routes traveling the City from 6:00 a.m. to 10:15 p.m. on weekdays and from 7:00 a.m. to 8:15 p.m. on weekends and holidays.  It will also support special services for people with disabilities in wheelchair-accessible vans and in taxis at current levels.

The new funding, if approved, will allow Mountain Line to expand service hours, provide more buses more often, and create capacity for new routes to new services areas as needed for housing and business development.

Bar chart depicting Mountain Line Transit ridership from 2018 to 2023, showing growth before a dip in 2020 due to COVID-19 and reaching 1.5 million trips in 2023. Notably, ridership has grown 819% since 2001, partially funded by sales tax from Proposition 488.

Who uses the Mountain Line system now?

Between 2000 and 2008 grew from 100,000 to 800,000 and has more than doubled since, reaching 2,500,000 in 2019.

A recent survey determined that more than 40% of Flagstaff’s population has used the Mountain Line system in the past year and almost 2,000 different individuals use the Mountain Line system every week.

Over two-thirds of Mountain Line riders do not have access to a car and rely on public transportation.

Almost one-half of Mountain Line riders are going to and from work or school.

Mountain Line also provides special services to people with disabilities in wheelchair-accessible vans, providing more than 11,000 special services trips in Fiscal Year 2024.

And, over the course of the past few months, Mountain Line has partnered with Flagstaff Unified School District to provide transportation options to high school and middle school impacted by district transportation reductions.

What will the Mountain Line sales tax cost?

If approved, there will be an increase to the overall city sales tax rate of .205%.  The overall transit tax rate will increase to .50%, which is equal to 50 cents on a $100 purchase.

Illustration of a one hundred dollar bill with two quarters placed in front of it. The bill shows standard features like the denomination and symbols, while the quarters display typical markings, highlighting the impact of Proposition 488 on sales tax.

Why did Mountain Line and the Citizen Review Committee recommend increased funding and renewal of the transit tax?

Mountain Line is currently operating efficiently and effectively within its existing budget and revenues and is expected to continue to do so, and new funding will provide opportunity for implementation of the priorities and recommendations of the 5-year plan. However, inflation and rising costs have had an impact, and in order to continue current levels of service more funds would be needed. And, as the transit tax expires in 2030, Mountain Line is seeking approval to continue funding through 2040 to secure the future funding needed for existing and expanded services.

Why did Mountain Line and the Citizen Review Committee recommend a renewal through 2040?

This renewal timeframe ensures that Mountain Line will continue to serve the community for another decade beyond the scheduled expiration of the current tax.  Mountain Line will come back to voters regularly to report on performance and outcomes.

Why are taxpayers being asked to pay taxes to provide bus service?

Most forms of transportation, including roads and airports, are supported with tax dollars.  For example, the Fourth Street Overpass was built after Flagstaff voters approved an increase in the city sales tax in 2000.  Public transit systems are commonly funded with local sales tax revenues.  While Mountain Line passengers pay a user fee to ride, that revenue is not enough to fund the transit system.  Mountain Line has also successfully leveraged the local transit tax to secure federal grants and funding to help offset the transit tax funding necessary for capital and infrastructure improvements.  Additionally, because this is a sales tax, visitors to the community also contribute to transit funding when they purchase anything within the City of Flagstaff.

Why is the City considering using the sales tax to fund Mountain Line bus service?

Mountain Line bus service impacts everyone, including visitors and people from neighboring communities who are working or shopping in Flagstaff.  A sales tax allows everyone to assist in paying for the system.

Who will pay the Mountain Line sales tax?

Every person and business purchasing taxable goods within the City will pay the sales tax.  This includes visitors to Flagstaff as well as people who live outside the City limits and come into Flagstaff to work, shop, and socialize.

How does Flagstaff’s city sales tax rate compare to other Arizona cities?

This table shows the city sales tax rates for several Arizona cities as of January 2024.

A bar graph compares percentage values of different locations' sales tax rates: Page (3.000%), Sedona (3.500%), Kingman (2.500%), Phoenix (2.300%), Tucson (2.600%), Flagstaff proposed under Proposition 488 (2.486%), Flagstaff existing (2.281%), and Prescott (2.000%).

The minimum combined 2024 sales tax rate for Flagstaff, Arizona is 9.18%. This is the total of state, county and city sales tax rates. The Arizona sales tax rate is currently 5.6%. The County sales tax rate is 1.3%. The Flagstaff sales tax rate is 2.28%.

What will ensure that the new sales tax money is used on Mountain Line?

The ballot language is legally binding.  Funds must be used as indicated in the proposition.  The ballot specifies the purposes of the tax as paying “the costs of acquiring, constructing, improving, operating, and maintaining facilities for the transportation of passengers within the City of Flagstaff including passenger buses and other motor vehicles, shelters, transfer stations, garages, maintenance facilities and equipment, and other transit facilities.”

Will the sales tax rate increase if this proposition passes?

If approved, Proposition 488 would replace and continue the current Mountain Line sales tax through 2040.

How have City voters previously supported transportation improvements?

In 1988, City of Flagstaff voters approved bonds for several transportation improvements.  In 2000, City voters approved several sales tax increases to fund both street improvements and transit services. In 2008, voters approved an extension of the sales tax for Mountain Line operations and sales tax increases for four additional Mountain Line improvements.

In 2016, voters approved a continuation of sales tax as approved in 2008, through 2030. These funds support all current program needs including acquiring, constructing, improving, operating, and maintaining facilities for the transportation of passengers within the City of Flagstaff including passenger buses and other motor vehicles, shelters, transfer stations, garages, maintenance facilities and equipment, and other transit facilities. These funds do not allow for the expansion of transit service in the community.

What was the outcome of the prior 2016 transit ballot questions?

The question in 2016 to continue the tax through 2030 was approved by over two-thirds of voters and Mountain Line has maintained service and incorporated improvements like electric buses and a new route since that time. As the community has continued to grow and the need for transit services has expanded, it has become clear that the current level of funding will not meet the future needs of the community.

Does Mountain Line use these taxpayer funds in a responsible manner and does the organization run a budget deficit?

Mountain Line works diligently to ensure that it stewards taxpayer dollars in the most efficient manner possible. Mountain Line operates without creating a budget deficit and all Mountain Line funding goes directly to transit programs.

QUESTIONS? Contact us here.