3rd Penny Sales Tax Extension Frequently Asked Questions
How long will the extension last?
The 3rd Penny sales tax extension will expire when the total funding, amounting to more than $463 million, is collected for the identified projects. Because of the downturn in our economy that began in 2001, all the needed funds were not raised for the 2001-2006 3rd penny sales tax. This left $71.27 million in projects that were approved by voters, but were not funded as a result of the sales tax shortfall. When the $463,461,000 is raised, the 3rd penny collections for this package will end. Before the tax expires, which is expected to be in October 2012, City officials will bring to voters a new project list and ask for a public vote to extend the 3rd penny to fund those projects.
When will the projects be completed?
The schedule of projects to be funded with the sales tax is compiled and approved by the Mayor and City Council after the funding package is passed. The projects are built over a six-year period.
City officials have already committed to build the 2001 sales tax projects first through advanced funding - by issuing revenue bonds that will be repaid with the sales tax collections received during the year. The Public Works & Development Department holds public meetings as the projects are funded and ready for design and/or construction.
Will sales taxes increase?
No, they will not. This is merely an extension of the 3rd Penny sales tax originally levied in 1980 after being approved by Tulsa voters. The program has since been extended by voters four more times, funding $1.32 billion in capital improvement needs throughout the city.
Tulsans pay 8.5 percent sales tax on most retail purchases.
The state of Oklahoma gets 4.5 percent. The City of Tulsa gets 3 percent and the counties get the remainder. Of Tulsa’s three cents, two cents go for operations and maintenance and one cent – the Third Penny – is used for capital projects.
What are capital improvements?
Capital improvements include the acquisition of real properties; the construction, reconstruction and repair of buildings, appurtenances and improvements to real property; the construction, reconstruction and repair of roads and highways and/or streets and alleys, including the acquisition of rights-of-way and other real property necessary for such construction; and the construction, reconstruction and repair of water lines, sanitary and storm sewers and related facilities, including the acquisition of rights-of-way and other real property necessary for such construction; and, the purchase, lease or rental of machinery, equipment, traffic control devices and street lighting systems, furniture and fixtures. Capital improvements diminish in value with prolonged use.
Where can I see the project list?
A complete list of the 2006 Third Penny Sales tax can be viewed on the web, or by calling the Mayor’s Action Center at 596-2100 to request a copy.