Lincoln voters will decide on April 8, 2025 whether to continue the City’s quarter-cent sales tax funding for street improvements, known as Lincoln on The Move funding.
In 2019, the six-year quarter-cent sales tax was approved for street improvements. This quarter-cent sales tax generates approximately $18 million annually, totaling a projected $102 million over the program's duration. The sales tax has funded street repairs and rehabilitation and new street growth across all the quadrants of the city. Street repairs impact traffic safety, and new street growth provides transportation infrastructure to new housing and business development. The current LOTM funding is scheduled to end on September 30, 2025.
On February 3, 2025, the Lincoln City Council voted to place the question of continuing the quarter-cent sales tax on the April 8, 2025, City of Lincoln primary ballot. If the continuation of the quarter cent sales tax measure is not approved, the dedicated funding for street repairs, street rehabilitation, and new growth streets will cease. If the continuation is approved, the funding would continue from October 1, 2025, through September 30, 2033.
Potential Impacts of Funding
The outcome of the vote will determine the future funding level for street improvements and new growth. If the quarter cent sales tax measure is approved, approximately 65 projects will be completed over eight years. If the measure fails, the quarter cent sales tax ends. It is estimated it would take the City up to 22 years to complete 65 projects without the quarter- cent sales tax revenue.
Sales Tax Contribution
The quarter-cent sales tax is contributed to by residents, businesses, and visitors who utilize city streets. Visitors contribute approximately 30 percent of the total quarter- cent sales tax revenue use for street improvements.
The ¼ cent sales tax provides an estimated $18 million annually for Lincoln’s street system. Collection began October 2019. The overall distribution of funding and a summary of revenue collections are illustrated in the following charts.
Overall Funding Allocation
Revenue Projected vs. Collected
- FY
2019/20
- FY
2020/21
- FY
2021/22
- FY
2022/23
- FY
2023/24
- FY
2024/25
Sales tax collected at the register shows up in city accounts approximately six weeks after the end of the month.
The delivery of projects to fix our streets with this revenue is a follow up to initiatives conducted by a Citizens’ Coalition and the commitment to implement recommendations.