By Kerry Lamson, Candidate for Town of Matthews Board of Commissioners
This is the last of a series of blog posts I created as a result of a request I received asking for my response to several questions regarding my thoughts or positions on some key topics for the upcoming election. This question has been asked before and seems to be top of mind within Mecklenburg County and that is:
How are you voting on the sales tax increase referendum for transit and why(assuming it passes the County Commissioners vote and gets placed on the November ballot)?
I debated posting this now given it’s not yet approved for the ballot. That decision is still pending an August 6th public hearing and vote by the Mecklenburg County commissioners. (See my update below. It passed) Posting now helps inform residents about the potential tax should they want to take action at or before the public hearing. I have already posted on the details of what is in the Act so let’s get to the key points.
Whether you should vote for the sales tax referendum under the P.A.V.E. Act as a Matthews resident depends on how you weigh certain trade-offs: direct benefits to our town versus regional needs, your household’s financial impact, and your views on long-term infrastructure planning.
Reasons to Vote Yes as a Matthews Resident:
- $5–6 million/year in road funding for Matthews
Over 30 years, Matthews could receive around $150 million (unadjusted for inflation) specifically for road, sidewalk, lighting, and bike lane improvements—without needing to raise local property taxes by 25% to generate the same amount of annual revenue. - Regional growth pressures
With Matthews growing rapidly and over 90% of residents commuting outside the town daily, the added funding could relieve congestion on key corridors like NC-51, US-74, and John Street. - Transit authority structure may improve delivery
The creation of a 27-member regional authority could streamline and professionalize regional transit planning—potentially more effective than the current CATS setup. - Indirect benefits from broader regional investment
While Matthews isn’t slated for light rail, the wider network—including improved buses and the Red/Blue lines—may ease traffic region-wide and support economic mobility, especially for low-income and transit-dependent residents. - Federal funding leverage
Local investment through the tax could unlock federal grants and matching funds for regional projects—without it, those dollars likely won’t come.
Reasons to Vote No as a Matthews Resident:
- No light rail to Matthews
The Silver Line East extension to downtown Matthews was dropped in favor of bus rapid transit, which many see as an inadequate substitute. So, Matthews residents would help pay for rail expansions they don’t directly benefit from. - Regressive tax impact
A 1% sales tax disproportionately affects lower-income families, with Matthews’s estimate at around $370 – $500/year per household—a significant cost alongside recent property tax increases. - Questionable return on investment for some
If you rarely use public transit, and the road projects funded don’t significantly affect your daily commute, the personal benefit may feel limited. - Concern over spending equity and project execution
Critics point out that the 60/40 funding split is rigid, and there are no guarantees Matthews-specific priorities will be met by the regional authority.
Summary of What Matthews Gets:
- ✅ About $5.4M/year for local infrastructure
- ❌ No new rail service
- ✅ Modest bus and transit improvements
- ❌ Regressive tax burden on lower-income households
Bottom Line: Should You Vote Yes?
Ask yourself:
- Do you value a guaranteed $5M/year investment in Matthews’ roads and infrastructure enough to accept the additional tax burden—even without light rail? Keep in mind, that today’s construction cost for a sidewalk of several blocks is $2M.
- Do you want to help fund a regional transit system that could relieve long-term traffic and improve mobility—even if you won’t directly benefit in the short term?
If you prioritize local road fixes, congestion relief, and future-proofing infrastructure, a Yes vote may make sense.
If you feel the return to Matthews is too small, or you’re concerned about affordability and tax equity, then a No vote might align more with your household’s needs.
There is no one-size-fits-all answer—only an informed one.
There is not much time to influence the County Commissioners on their vote and we lost the battle at the state level with the P.A.V.E. Act legislature having been signed on July 1st by Governor Stein. My guess is the county will approve placing it on the November ballot giving us a few more months of “heated” discussion before November 4th.
And No, I did not offer them my personal decision regarding how I will vote. As always, let me know your position although in this case, we each only have one vote!
Update: Well I was right! Last night the Mecklenburg County Commissioners voted 8 to 1 in favor of placing the 1% sales tax increase referendum on the November ballot. So now is the time to understand exactly what this means for you and the community to make an informed decision in November and to register to vote if you haven’t already so you can have a voice.
There is information on how and when to register to vote and a link to everything you will need to register on this website.
Frequently Asked Questions (FAQ) About the 1% Sales Tax Referendum (P.A.V.E. Act)
1. What is the Mecklenburg County 1% Sales Tax Referendum (P.A.V.E. Act) and what are its main objectives?
The Mecklenburg County 1% Sales Tax Referendum, authorized by the Projects for Advancing Vehicle-Infrastructure Enhancements (P.A.V.E.) Act (House Bill 948), is a proposed one-cent per dollar sales tax increase in Mecklenburg County. Its primary objective is to generate substantial funding—projected to be between $19.4 billion and $25 billion over 30 years—for comprehensive regional transportation improvements.
These improvements encompass expanding existing transit systems, such as the Red Line commuter rail and the Gold Line streetcar, building parts of the east-west Silver Line, and investing significantly in buses, micro-transit, and road projects across all Mecklenburg County municipalities. The aim is to address crumbling infrastructure, reduce congestion, foster economic growth, and improve equitable access to transportation for residents.
2. How will the funds generated by the sales tax be allocated and managed?
If approved by voters, the generated funds will be split according to a strict 60/40 formula. Sixty percent of the new tax proceeds will go to a newly created, independent 27-member Metropolitan Public Transportation Authority. This authority will be responsible for financing, acquiring, constructing, operating, and maintaining mass transit projects, including trains and buses, with assets from the existing Charlotte Area Transit System (CATS) transferring to it.
The remaining 40% will be distributed monthly among “eligible municipalities” within Mecklenburg County, including Charlotte, Cornelius, Davidson, Huntersville, Matthews, Mint Hill, and Pineville. These municipalities will use their allocated funds for local road projects, sidewalks, bike lanes, lighting, and bridge improvements, according to their specific local priorities.
3. What are the main arguments in favor of the transit tax referendum?
Proponents of the sales tax referendum highlight several key benefits. Firstly, it addresses significant infrastructure deficiencies by providing much-needed revenue for multimodal transportation options, which the NCDOT has been unable to adequately fund.
Secondly, a modern, connected transportation system is seen as essential for supporting the Charlotte region’s rapid growth, attracting talent, and fostering economic development.
Thirdly, expanded transit options and improved roads are expected to reduce traffic congestion, leading to shorter commutes and an improved quality of life, including potentially lower car insurance premiums.
Fourthly, increased transit access is anticipated to particularly benefit low-income workers by expanding employment opportunities and reducing commute times.
Lastly, the substantial local investment generated by the sales tax would position Mecklenburg County to leverage and secure additional crucial federal grants and matching funds for major transportation projects that would otherwise be unattainable.
4. What are the main arguments against the transit tax referendum?
Critics of the referendum raise several concerns. A primary argument is the regressive nature of a sales tax, which disproportionately affects lower-income households as they spend a larger percentage of their income on essential goods subject to sales tax, potentially costing them hundreds of dollars annually in addition to other tax increases.
There are also concerns about the plan’s scope and equity, particularly regarding the omission of Matthews from the Silver Line light rail extension, with many feeling that bus rapid transit is an inadequate substitute for rail.
Some question the efficiency and cost-effectiveness of specific programs, such as micro-transit. Small businesses worry that a 1% sales tax increase, raising the county rate to 8.25%, could negatively impact their competitiveness compared to businesses in neighboring counties.
Finally, there are uncertainties about the slow pace of implementation and the lack of a backup plan if the referendum fails.
5. How will the P.A.V.E. Act specifically impact the Town of Matthews residents?
For Matthews residents, the P.A.V.E. Act presents a mixed bag of trade-offs. On one hand, Matthews is projected to receive a significant benefit of approximately $5 million to $6 million annually from the 40% road funding portion of the tax proceeds. Over 30 years, this could amount to around $150 million (unadjusted for inflation) specifically for local road, sidewalk, lighting, and bike lane improvements, without requiring a substantial increase in local property taxes. This is crucial for a town experiencing rapid growth and significant traffic congestion on key corridors.
On the other hand, a major point of contention for Matthews is the exclusion of the Silver Line East light rail extension to downtown Matthews, which was replaced with bus rapid transit in the current plan. This means Matthews residents would contribute to a regional rail system from which they do not directly benefit, leading to concerns about the return on investment and equitable distribution of funds.
6. What are the financial implications of the sales tax increase for average households?
The financial impact varies depending on household income and spending habits. Estimates suggest that the 1% sales tax increase could cost an average income-earning household in Mecklenburg County around $240 per year, while lower-income households might face an annual cost of approximately $132 in Charlotte or up to $370 in Matthews, given their median income. For example, a family spending $50,000 annually on taxable goods would pay an extra $500 per year in sales tax. While a portion of the revenue is expected to come from visitors and out-of-county commuters, the burden on local residents, especially those with lower incomes, is a significant concern for critics. This increase would also come on top of other projected property tax and fee increases.
7. What considerations should voters weigh when deciding on the referendum?
Voters are encouraged to consider several factors to make an informed decision. They should assess the direct economic impact on their household, calculating the estimated additional sales tax they would pay versus potential savings from reduced commute times or improved transit options.
Voters should also evaluate their personal reliance on public transit versus car commuting and how the 60% transit funding and 40% road funding would benefit their daily travel.
Broader community impacts, such as addressing rapid regional growth, improving safety, and fostering economic vitality, should also be considered.
Finally, voters must reflect on issues of equity, including how the plan serves all communities and addresses concerns about potential gentrification, and their level of trust in local government and the new transit authority to effectively allocate and implement the funds.
The referendum is an all-or-nothing vote, meaning rejection would leave many large-scale transportation projects without a guaranteed funding source.
8. What is the current status of the referendum and what are the next steps?
The P.A.V.E. Act (HB 948) was signed into law by North Carolina Governor Josh Stein on July 1, 2025. Following this, the Mecklenburg County Commissioners voted 8 to 1 in favor of placing the 1% sales tax increase referendum on the November ballot. This means that voters in Mecklenburg County will have the final say on the sales tax increase in the upcoming November election. Residents are urged to understand what the referendum entails, its potential impacts on their households and communities, and to register to vote to ensure their voice is heard.
Kerry