Wednesday, October 21, 2009

Denver RTD rescinds scheduled LRT, bus service reductions

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Denver’s Regional Transportation District has moved to rescind a planned cutback of bus and light rail service originally scheduled to take effect in January, as part of a cost-cutting move. RTD’s Board of Directors had directed staff to come up with service reductions to help balance the agency's budget.


But RTD has since discovered it would receive an unanticipated $23 million in sales-tax proceeds during the next two years because of a change in state law relating to tax collections. Colorado legislators passed a measure earlier this year that eliminated a 3.3% "vendor's allowance" that businesses had been able to deduct from their tax obligation for the timely remittance of sales and use taxes.