MARTA to pay $32.6 million to resolve Atlanta audit dispute
Atlanta and MARTA settle sales tax dispute
The City of Atlanta and MARTA reached a $52 million settlement to resolve a years-long dispute over bus service sales tax funds.
ATLANTA - The City of Atlanta and MARTA have reached a $52 million settlement to resolve a long-running dispute over sales tax funds dedicated to enhanced bus service.
What we know:
The City of Atlanta and MARTA agreed to a full resolution regarding More MARTA Atlanta sales tax proceeds, ending an ongoing disagreement after a 2023 city audit sparked years of discussion over where those tax dollars were spent.
The audit examined MARTA's sales tax initiative and found that the transit agency overcharged taxpayers millions of dollars for services never rendered.
Under the terms of the $52 million deal, the settlement incorporates $19.37 million that MARTA previously transferred back into the More MARTA Atlanta reserve account. MARTA will pay the remaining $32.63 million in monthly installments no later than August 31, 2028.
The recovered funds are slated to support future transit initiatives, ranging from light rail projects on the Atlanta BeltLine to station enhancements.
The backstory:
Atlanta voters approved a half-penny sales tax in 2016 to fund expanded and improved transit across the city through the More MARTA Atlanta program.
The program operates as a long-term partnership between local leaders and transit officials to deliver major system upgrades.
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What they're saying:
"This agreement puts a long-running dispute behind us and allows us to put our full focus where it belongs—delivering the transit investments Atlantans voted for," Mayor Andre Dickens said, thanking city and transit representatives for protecting the city's investment.
Atlanta City Councilmember Michael J. Bond noted that the settlement followed pushback from both local leaders and residents after MARTA initially considered asking for more funding. Bond explained that the city audit showed millions in unaccounted-for work, but emphasized that the agreement now restores accountability.
"Atlanta is a transit city. We want to be a transit leader," Bond said. "We want people to use public transportation, it is our future. So, we invest in it and we want people to use it and feel good about it."
MARTA General Manager and CEO Jonathan Hunt agreed the deal provides much-needed certainty to move forward.
"Our customers are best served when MARTA and the City are working together in a collaborative fashion," Hunt said. "This agreement gives us an opportunity to turn the page, strengthen that partnership and focus on making meaningful improvements to our system while delivering safe and reliable transit for the people of Atlanta."
MARTA Board Chair Jennifer Ide praised the resolution as responsible governance, while City Council Transportation Committee Chair Alex Wan added that the deal ensures tax dollars are fully accounted for while prioritizing project delivery.
What we don't know:
Officials have not yet specified the exact timeline or list of specific transit projects that will receive the newly allocated reserve funds.
The Source: The information in this story was gathered from the City of Atlanta and MARTA, who released a joint statement outlining the settlement terms.