Answers to the questions
we hear most often.
When did the Mayor announce this initiative? Why?
Almost every day since he took office in 2004, Mayor Cornett has been asked if there will be a MAPS 3, and what will be in it.
Previously, he has told questioners that the City’s focus is exclusively on the implementation of MAPS for Kids, and that MAPS 3 talk was premature. But now, seeing that the end of the MAPS for Kids sales tax is within sight, he believes that the appropriate time for this discussion has now arrived.
And recognizing the tremendous renaissance the MAPS projects have sparked in Oklahoma City, the Mayor believes that we owe it to ourselves to consider a MAPS 3. He introduced the concept of soliciting opinions and ideas at his annual State of the City address on January 17, 2007. You can read the text of that speech here.
Who votes to approve this initiative?
The citizens who live within the city limits of Oklahoma City.
What percentage of the voters is required for approval of new sales taxes in Oklahoma City?
Fifty percent of the voters, plus one.
How much would a MAPS 3 sales tax increase the current sales tax rate in Oklahoma City?
It would not increase the rate from where it currently stands, but the MAPS for Kids one-cent sales tax will end at the end of 2008. At that time, the sales tax rate in Oklahoma City will decrease by one cent on every dollar. Approval of a one-cent MAPS 3 sales tax would return the sales tax rate to the level it is at currently.
How long would a MAPS 3 sales tax last? Would it be permanent? When would it start and end?
It would not be permanent. How long it would last is one of the questions we are asking you to help us determine. One thing is certain – it would not start before the end of the MAPS for Kids sales tax.
The MAPS sales tax lasted for five years, and was extended by the vote of the people for six additional months. The MAPS for Kids sales tax will last for seven years.
How much money would be raised by a MAPS 3 sales tax?
That is not yet determined. And when it is, it will only be a best estimate. The target amount will depend on the project needs, the length of the tax, and the economy of Oklahoma City during the period the tax is collected. The MAPS sales tax raised $309 million, between the five-year original tax and the six-month extension. On top of that, $54 million was earned in interest on that tax revenue. That interest was also applied towards MAPS. The MAPS for Kids sales tax is not over yet, but it is estimated it will raise approximately $500 million.
This site accepted ideas until May 15, 2007. Now what?
Now, the process of sifting through those ideas has begun. That will lead to two questions that ultimately must be considered by the Mayor and Council:
- Does the support exist for a MAPS 3? and
- If so, what projects should be included?
Answering both questions will require a lot of time and consideration, and further dialogue with the people of Oklahoma City. Ultimately, this discussion and planning phase of the process would conclude with a vote by the people of Oklahoma City.
What are MAPS and MAPS for Kids?
MAPS stands for Metropolitan Area Projects. In December of 1993, the voters of Oklahoma City approved a one-cent, five-year temporary sales tax to fund nine projects, and that tax was extended by another vote of the people for six months. The voters followed MAPS with another one-cent temporary sales tax in 2001 to fund MAPS for Kids. The “MAPS” in MAPS for Kids stands for Metropolitan Area Public Schools.
What is sales tax?
Generally, when anyone makes a retail purchase in Oklahoma City, they pay an additional amount on every dollar in sales taxes. The MAPS model has been to add one cent on every dollar to the sales tax already collected.
The residents of Oklahoma City who live in the portion of the City located in Oklahoma County or Cleveland County pay an additional 8.375 cents in sales tax for every dollar spent. Of the 8.375 cents per dollar that citizens of Oklahoma City spend, 4.50 cents goes to the State of Oklahoma general fund, to be spent by the State Legislature. The other 3.875 cents goes to the City of Oklahoma City.
Of that 3.875, the general fund of the City receives 2.00 cents, public safety (fire and police) receives 0.75 cents, and the Zoo receives 0.125 (1/8th). These taxes were approved by a vote of the people, and do not have an end date. The public safety portion of the Oklahoma City sales tax actually covers only a small part of the money that is ultimately spent on those functions. The Zoo tax was specially approved by the voters of Oklahoma City in 1990. And finally, 1.00 cent on every dollar goes to MAPS for Kids. Unlike the others, the MAPS for Kids sales tax is temporary. This tax began January 1, 2002 and will end December 31, 2008.
The relatively small portions of Oklahoma City that are in Canadian County or Pottawatomie County are also subject to an additional county sales tax. Oklahoma County and Cleveland County do not have a county sales tax.
When does the current MAPS for Kids sales tax end?
December 31, 2008.
When a MAPS sales tax ends, does that mean the construction ends?
No. MAPS projects are built debt free (as opposed to a bond issue project), and it takes time for the money to be collected and spent efficiently. For example, the MAPS for Kids sales tax was passed in 2001, took effect in 2002, and will end in 2008. But because of the time it takes to plan and build school buildings not all of the projects will be complete for a few more years. The completion of the original MAPS projects also took several more years after the last tax funds were collected. Every MAPS initiative has essentially been a 10-12 year process from the beginning of the first conversation to the completion of the last project. The MAPS 3 conversation began January 17, 2007. If a MAPS 3 list of projects were approved by the voters, it is possible that the last project may not be finished until nearly 2020.
Who is on the City Council? How are they involved in the process?
You can learn about your City Council here. Ultimately, the City Council is the body that considers whether to schedule a vote of the people on a sales tax.
Why do the people vote?
All new sales tax increases must be approved by the people. Though a MAPS 3 sales tax would not increase the sales tax rate from where it is today, the one-cent MAPS for Kids sales tax is temporary, and will expire at the end of 2008. A MAPS 3 sales tax would be a new tax. It would also be temporary.
I keep reading here that an idea for MAPS 3 should fit in with what the City of Oklahoma City does. What are the different levels of government, what are their roles, and where does the City of Oklahoma City fit in? Where do they get their funding, and how do they spend it?
There are several elected levels of government that provide different services. They include Federal, state, county, city and school district.
The Federal government is funded in many ways, but roughly 90 percent of its revenue comes from personal income tax, corporate income tax or payroll taxes. The Federal government spends money at almost every level, in almost every way, but just under two-thirds of Federal government spending goes towards the national defense or so-called “entitlements,” like Medicare, Medicaid and Social Security. The rest goes to various other Federal purposes, such as highways.
The Oklahoma state government’s revenue primarily comes from income tax, sales tax and taxes on the production of energy (oil and gas). A significant portion of the state’s spending goes to public education, social services and highways.
Counties in Oklahoma are primarily funded through property tax (or “ad valorem”). Some counties (though not Oklahoma County) also collect a county sales tax. The counties primarily spend their money on roads and public safety. Counties also depend on bond issues for funding.
School districts in Oklahoma are separate from municipalities. The City of Oklahoma City, for example, has no oversight over the Oklahoma City Public Schools District, and does not fund it. In fact, there are 24 school districts that stretch into the city limits of Oklahoma City. It took a change in state law to allow MAPS for Kids to provide new buildings to the Oklahoma City Public Schools District, and Oklahoma City is allowed to manage that process. School districts in Oklahoma are primarily funded through property taxes (or “ad valorem”), state funding, and some Federal funding. School districts in Oklahoma also fund many capital projects through bond issues.
The City of Oklahoma City receives just over half of its revenue from sales tax. Nearly two-thirds of the City’s expenses go to public safety (police and fire). The City provides water services, waste removal, police and fire protection, Metro Transit and parking, parks and recreation, and neighborhood services, while also managing several entertainment and sports venues, the Zoo and the airports. The City also plays a very active role in economic development. As is the case with schools, municipalities in Oklahoma have no oversight over health care services.
The City of Oklahoma City, like school districts and counties, also relies heavily on bond issues to fund capital projects and maintenance. The best example of a typical bond issue project is street resurfacing, but many other important Oklahoma City projects are funded through bond issues.