Sales Tax

After being signed by California Governor Arnold Schwarzenegger, a half-cent sales tax increase will appear on the November ballot in Los Angeles County, where it would create a fund for public transit projects.

After more than three hours of public comment and debate at Thursday's MTA Board meeting, the Board of Directors approved placing a half-cent sales tax on the November ballot, pending approval of a companion Assembly bill.

Mayor Antonio Villaraigosa's half-cent increase in the county's sales tax would create $30-$40 billion for transportation projects over the next 30 years, and could go before voters in November.

Virginia Governor Tim Kaine has proposed a plan to raise sales taxes in the state to help fund public transportation projects -- a plan similar to one voters turned down in 2002. But this time, voters won't be involved in the decision.

Five counties in metropolitan Minneapolis have approved the creation of a new quarter-cent sales tax that will be dedicated to funding transit projects.