U.S. 36/I-72 TDD Tax Revenue Ahead of Projections

Revenue being collected by the special half-cent sales tax to help fund the local portion of the U.S. 36 expansion project is ahead of schedule, according to Larry Craig, president and executive director of the U.S. 36/I-72 Corridor Transportation Development District.Top of Form

"The good news is that we are ahead of our projections of how we anticipated the half-cent sales tax receipts would come in, based upon the base year that we did the study on," he said. "We've come in this last full year a couple of hundred thousand dollars ahead of projections and that's a good sign. If that trend can continue then we will be able to pay off the (local) $43 million obligation that we'll have earlier."  Craig acknowledged that he is "pleasantly surprised" by the financial news. He hopes the positive trend continues.  "That will continue to grow as long as the residents of the four-county area continue to shop in the four-county district," he said. "The more people that shop in Marion, Monroe, Shelby and Macon counties, the quicker that road can be paid for."  The money raised thus far is not sitting idle.

"Since January of 2006 the tax has been collected and paid to the TDD (transportation development district). We've been putting it in a bank account and we've been investing it either in money market accounts or other government instruments at the highest rate that we can get to draw as much interest as we can get," he said. "Every penny we get in interest on the taxes that we're collecting right now means less of an obligation on the taxpayers."

Currently, money being spent on the project is coming from a $7 million earmark secured by Sen. Kit Bond, former Sen. Jim Talent and Congressman Kenny Hulshof, according to Craig.

"MoDOT is spending down that $7 million earmark that came out first before they ask us for any of the sales tax funds," he said. "Probably the end of this year we will be asked to make our first installment toward that $43 million loan that we'll be getting. That first payment will probably end up being between $4 and $5 million."

The half-cent sales tax has a 15-year life. However, if revenue continues to roll in ahead of schedule, it could end sooner.  "If we pay it off ahead of schedule then the tax goes away ahead of schedule," said Craig. "And if we haven't been able to meet our obligation at the end of 15 years it still goes away."

Expansion of the 52-mile segment of U.S. 36 to four lanes from just west of Hannibal to Macon is scheduled to be completed by Dec. 31, 2010.

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