At Walk Bike Nashville, we believe a vote for Choose How You Move is a vote for streets where people are prioritized, a vote that will accelerate our mission to make our city more walkable, bikeable, and livable.

We addressed the program’s sidewalks, bikeways, and bus service upgrades in our first post, and the safety and signal aspects in our second post. Let's shift to the finance conversation. 

Why Now?

Nashville is one of four major cities in America without dedicated funding for transit. This signals to the feds that we’re not committed to making significant investments in our transportation system, making Nashville uncompetitive for most federal transportation infrastructure funding. Instead of paying the required local match for federal grants, Nashville's federal tax dollars are being distributed to fund projects in other cities across the country. Choose How You Move ensures we bring a lot of that money home. 
Research conducted by Think Tennessee and compiled here

How the Transportation Improvement Program is Funded

Existing sales tax rate for Davidson County and surrounding counties. Image courtesy of Metro Nashville.

Choose How You Move is financed by a 0.5% sales tax increase in Davidson County. This will change the Davidson County sales tax rate from 9.25% to 9.75%, matching most surrounding counties’ existing sales tax rates. For example, this is the sales tax you’re already paying for a sandwich in Murfreesboro, gas in Lebanon, or tickets to Pilgrimage Fest in Williamson County. The only surrounding areas not paying this tax rate now are Sumner County (9.25% in county. 9.75% in Hendersonville), Cheatham County (9.25% in county. 9.75% in all cities), and Montgomery County (9.50% county-wide). It is estimated that this sales tax increase will cost taxpayers approximately $6 a month.

Image courtesy of Nashville Moves campaign

 

You may be asking, why was sales tax chosen? Of the revenue streams available via the state's Improve Act, sales tax generates the most revenue by a significant margin. For example, a half-percent sales tax surcharge generates $162 million annually compared to $25 million generated by a one-percent hotel/motel surcharge (Think Tennessee). Also, due to the city's large number of tourists and commuters, roughly 60% of all sales tax is paid by non-Davidson County residents. 

Another way to frame this is as a tax adjustment. As Stand Up Nashville points out, If we don’t allow for routine adjustments of our taxes, we’ll continue to experience the negative impact of underfunded departments, inconsistent services, and crumbling infrastructure. Compared to local taxes siphoned off to fund entertainment projects downtown, this tax is dedicated to transportation improvements that will benefit the entire county, improving infrastructure that everyday Nashvillians already use. 

Affordability

When we talk about the finances of this program, it’s also important to consider how much we can save as a result of these improvements. Transportation and housing costs are Nashvillians’ two largest monthly expenses. On average, the cost of owning, operating, and maintaining a new car exceeds $1,000 per month, according to AAA. Those who make the median income in Nashville spend over 40% of their income on shelter and transportation per the Housing and Transportation Affordability Index. And if you make less, you spend well over half of your income on those two items alone. 

When transit is a reliable, desirable, and accessible mode of transportation at all hours of the day, car ownership becomes optional, which could save Nashvillians thousands of dollars a year. Having the option to go from a two-car household to a one-car household for many families would be a gamechanger. 

Choose How You Move also increases the reduced fare and free fare programs for qualifying students, veterans, seniors, people with disabilities, and low-income residents while removing barriers to qualification and enrollment. 

In summation, Mayor O’Connell’s transportation improvement program is a good deal. The planned improvements are for a Nashville for Nashvillians, one where it’s easier, safer, and less expensive to move around town. And importantly, we get these benefits at the cost of a sales tax we’re already paying when we visit surrounding counties. 

Getting Involved

If you feel, like us, that Choose How You Move will improve our transportation system, you should get involved. First, pledge your support of this program by joining our Streets for People campaign. If you're ready to knock doors, make calls, or speak to community groups, get involved with the Nashville Moves campaign, and let them know Walk Bike sent you. We're also excited to see the launch of Shift Nashville, a joint effort between the Tennessee Immigrant and Refugee Rights Coalition (TIRRC), Equity Alliance, and Stand Up Nashville (SUN) to support the transit referendum and ensure equity throughout the implementation of the program. And last but not least, tell your friends!