More money, fewer riders for SMART system

[Editor’s note: Gov. Gretchen Whitmer has signed this bill into law.]

Residents of Oakland and Wayne counties might pay more in property taxes under a transportation bill approved by the Legislature during December’s lame-duck session.

The bill aims to eliminate the choice to opt out of the county’s public transit authority, the Suburban Mobility Authority for Regional Transportation. It would also remove the five-year limit on taxes levied by public transit authorities.

House Bill 6088 says that if the voters of a county with a population of at least 1.1 million — currently Wayne and Oakland counties — approve a transit millage, no political subdivision, such as a city or village, could opt out of membership in the transit system.

If signed into law by Gov. Gretchen Whitmer, the bill would allow a public transportation authority to levy a tax of up to five mills on all taxable property.

The tax may be levied for up to five years, as determined by the authority, although a public transit authority may levy a tax for up to 25 years for public transit services that include a rail or cable car system.

A political subdivision’s withdrawal must receive voter approval or the approval of the political subdivision’s legislative body and two-thirds of the public transit authority’s board members.

SMART, the regional transportation authority, did not respond to a request for comment.

The forced transit tax would take effect after the county’s current public transit millage expires, at which time each political subdivision within the county would become a member of the public transit authority and be required to pay the millage, regardless of whether the political subdivision was a member before the bill takes effect.

Wayne County Executive Warren C. Evans welcomed the bill he said in a Dec. 20 Facebook post.

“This amendment will finally put us on the path toward expanded transit options that will not only make life better for our current residents but will make us more appealing and attractive to individuals and businesses who might consider relocating here.”

The number of rides provided by SMART has plummeted to about half what it was in 2008 — from just under 1.4 million to about 700,000, according to data from the Bureau of Transportation Statistics.

Bureau of Transportation Statistics

In 2020 during the pandemic, ridership dropped from just under 1 million rides to fewer than 200,000, but the figure has since rebounded to about 700,000 rides.

The Wayne County Transit Authority levies and collects property taxes within Wayne County on behalf of SMART, a regional transportation authority organized under the Metropolitan Transportation Authorities Act. According to committee testimony, 17 out of 43 communities in Wayne County—representing 500,000 residents—have opted out of the transit millage.

The transit millage generated $87.8 million for SMART operations in the fiscal year ending June 30, 2023, according to the House Fiscal Agency.

House Bill 6088 would have no direct impact on state revenues or expenditures. The amount of additional revenue cannot be readily estimated at this time, according to House analysts.

The bill sets up a “future tax grab,” Rep. Donni Steele, R-Orion Township, who currently serves as Republican vice chair of the Transportation Appropriations Subcommittee, told Michigan Capitol Confidential in an email.

“Oakland County already imposes a countywide transit millage, and this new transit tax would open the door for future increases. If we continue down this path, taxes may get so high that people will be forced to leave our community altogether,” Steele wrote. “Many communities have no use for public transit, yet they’re forced to pay for it anyway. People are already struggling with tight budgets as they attempt to navigate rising grocery, gas, and energy costs. The last thing they need is to be forced into paying more for a bus they don’t even ride on.”