Exempt public transit from the sales tax cap allowing municipalities the option to increase sales tax subject to voter approval for the purpose of financing public transportation.

Laredo has reached the maximum sales tax level allowed in Texas. EL Metro could have a sales tax as high as 1 cent; however, it is limited to the current 1/4 cent because of the cap. When the census indicates that we have exceeded a population of 200,000, we will no longer be allowed to use FTA money for operations. The capital funds will be plentiful; but in order to replace the Federal operating grant funds, we will need to hold a referendum to raise another 1/4 or 1/8 cent tax. Laredo will need an exemption from the state tax cap law to accomplish this.