Rail service along the Santa Cruz Branch Rail Line would likely require a new sales tax. The existing tracks likely would be replaced, according to a June report. (Nik Altenberg — Santa Cruz Local file)

Those rates would add to a 0.5% sales tax for local transportation approved by voters in 2016 and set to expire in 2047. 

The larger possible hike would push sales tax rates in some parts of Santa Cruz County to 12%, higher than any California county or city. Today, the highest sales tax rate in the state is 11.25% in the cities of Lancaster and Palmdale.

Thursday’s meeting

Thursday, the transportation commission is expected to discuss the report. Public comment can be given at the meeting or in advance at [email protected].

A final concept report for passenger rail is due this fall. After the report is presented, commissioners could give approval to continue planning for train service, put plans on hold or wait for more information. 

To continue to pursue a train, the transportation commission would need to devote about half of its discretionary money to rail design and environmental review starting next year, according to the report. That money pays for road repair, new sidewalks and other improvements. 

If passenger rail moves forward, voters likely wouldn’t consider a new tax until 2030, after environmental review ends. The election would require the go-ahead from state legislators because the new rates would exceed the state limit of 9.25%. The cities of Santa Cruz, Scotts Valley and Watsonville already exceed that cap.

The new tax would allow the transportation commission to take out bonds to pay for rail construction, which could be paid back by 2068 or 2072, depending on the local price tag.

The report estimated that if voters approve the potential rate hikes, the rail line could start construction in 2036 and open in 2047.

The tax would need to be permanent to pay for an estimated $41 million annual operating cost, but could be lowered once the bonds are paid off, the report stated. A conceptual report released Friday proposed $5 to $6 fares, and estimated they could generate up to $6.4 million annually.

How to participate

On Tuesday, transportation commission staff have scheduled office hours for feedback and questions about the rail proposal. Half-hour individual meetings are available:

• 11:30 a.m. to 2 p.m. and 4-5:30 p.m. Aug. 5 at the Regional Transportation Commission Office, 1101 Pacific Ave., Suite 250, Santa Cruz.
• Attend on Zoom, passcode 176048.
• Optionally, attendees can sign up for a half-hour meeting in advance.

Or, email [email protected] by Aug. 22 to comment on the plan.

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