Tag: fuel tax

First MO fuel tax increase since ’96 drops Friday, but refunds available

      On Friday, October 1, Missouri’s gas tax will increase for the first time in 25 years, but Missourians who don’t want to pay the increase have an option.

Representative Becky Ruth (Photo: Tim Bommel, Missouri House Communications)

      The tax will increase by 2.5 cents October first, with more incremental increases every July 1 until it reaches a 12.5 total increase in 2025.  The Department of Transportation estimates the increase, when fully implemented, will generate another $460-million annually for the state’s roads and bridges.

      Those who don’t want to pay the increase will be able to apply for a refund.  The Department of Revenue has prepared a draft of the form that would be used, which can be viewed here.  A final version is expected to be available, either digitally or by paper copy, by the time applications can be accepted between July 1 and September 30 of next year. 

      Fuel purchased in Missouri for vehicles weighing less than 26,000 pounds is eligible for a refund.  House Transportation Committee Chairwoman Becky Ruth (R-Festus) said Missourians who want a refund will, “need to save [fuel] receipts in case they are audited, and there is a form that the Department of Revenue is providing for them to fill out,” said Ruth. 

      Ruth said she’s not concerned that letting people get back some of their tax dollars will hurt the overall goal, that of giving the Department of Transportation more funding to maintain the state’s roads and bridges.

      “I think this is a very fair provision.  If people are happy with the job that’s being one and they want to continue to invest in the roads and bridges, then they will leave their money there.  If they feel like they need to have that money back; they don’t think it’s fair, they need it for whatever reason, or maybe they’re just not happy with how the money is being spent or they don’t feel like MODOT’s doing a good job, they can request a refund of that new tax.”

      Ruth said the initial increase, which begins October 1, has been estimated at about $1 a month for the average Missouri driver. 

      “Once it’s fully phased in [the increase will be] right around $60 [per year].  Again, it depends upon how much you travel, how much gasoline you use,” said Ruth.

      Ruth said the Department has been running about $800-million behind what it needs for road work, per year.  The increase will cover a significant portion of that gap, and will also put Missouri in position to draw federal dollars from an anticipated infrastructure bill.

      “That federal infrastructure bill is an 80/20 match.  Otherwise we would not be in a position to have the match money to pull down those federal dollars … we’re talking about billions.  Roughly, Missouri is looking around $7-billion.  If we did not have this money to pull down that match, that money would end up going to other states.”

      Ruth said she was grateful for the bipartisan support this proposal received.  She thinks that is due, in part, to the refund provision, and to lawmakers recognizing a need for additional money for transportation.

      “I just look forward to seeing Missouri rise in terms of where we’re at in road funding:  having safer roads to travel on, roads that are in better condition.  Our investment in our infrastructure also helps to drive the economy and bring in new business,” said Ruth.

      The gas tax increase became law when Governor Mike Parson (R) signed Senate Bill 262, which passed out the House with a final vote of 104-52.

Gas tax increase goes from legislature to voters on November ballot

The legislature is asking voters whether they want to increase Missouri’s gas tax to pay for road and bridge work and to boost support of the Highway Patrol.

Representative Jean Evans (photo; Tim Bommel, Missouri House Communications)

The House voted 88-60 to complete passage of House Bill 1460.  It would ask voters in November whether to increase the state’s fuel tax by two-and-a-half cents a year for four years – a ten cent total increase by July, 2022.  The current tax is 17-cents per gallon.

If passed, projections are the increase would generate about $421-million when fully implemented.  $128-million would be for local governments for road construction and maintenance.  The remaining $293.3-million would be appropriated by the General Assembly between the Department of Transportation to be used solely for road and bridge work, and the Highway Patrol.

Representative Jean Evans (R-Manchester) sponsored HB 1460, which was amended by the Senate to include the gas tax proposal.

“This is a vote to allow the people of Missouri a vote on how they want to pay for roads and bridges, how they’d like to fund their law enforcement,” said Evans.  “Send this vote to the people.  This is a vote for freedom and for safety.”

Kansas City Democrat Greg Razer said he was glad to see the House considering the ballot issue that would give the state a chance to take on pressing road and bridge work.

“We have these projects all over Missouri.  We need to address it.  This is a fantastic opportunity to allow the people of Missouri to make a decision on the future of our roads and bridges,” said Razer.

Kansas City Republican Kevin Corlew chaired the 21st Century Missouri Transportation System Task Force.  It recommended a gas tax increase to help support transportation funding.  He said whether such an increase will happen should be up to voters.

“Allow our citizens the opportunity on the November ballot to make a choice and to determine whether or not we can go forward with the 21st century Missouri transportation system, or will we be stuck with the transportation system that was built in the 20th century and continues to be funded with 20th century dollars.” said Corlew.

The House vote sent HB 1460 to the Secretary of State, who’s office is preparing it for the November ballot.  Many of the 60 “no” votes were cast by Republicans.

Representative Phil Christofanelli (photo; Tim Bommel, Missouri House Communications)

St. Peters representative Phil Christofanelli (R) called the proposal a “massive” and “deceptive” tax increase.

“The voters already had an opportunity to vote on raising taxes for transportation.  They said, ‘no,’ and here we are, coming back today, poll testing different ideas, how can we sell this idea that the voters have already rejected?”  said Christofanelli.  “We’re all going to go back to our districts – many of us in this [Republican] majority – and tell people how conservative we are, we are conservatives.  The voters believe that conservatives are here to shrink the size of government and not to grow the size of government, and that is exactly what we’re doing today.”

Representative Rocky Miller (R-Lake Ozark) said this measure is flawed and he will oppose it even though his district needs road maintenance and improvements.

“My district will come after me like a crazy person for voting against this, but there’s no way in the world I’m voting for this, and if it passes I’m going to work my guts out to kill it at the poll,” said Miller.

HB 1460 was originally a bill that would waive state tax liability on cash prizes awarded to Olympic medalists.  Another provision in the bill would create an “Emergency State Freight Bottleneck Fund,” that would pay for road projects costing $50-million or more that would relieve bottlenecks or delays of 20 minutes or more on Missouri roads.

The bill would also allow alternative fuels to be taxed at a substantially equivalent rate by 2026.

Because it was changed to include the ballot language for the gas tax, the language voters will see on the ballot will also ask them whether the state should waive tax liability for Olympic medal winners and could include language about the Bottleneck Fund as well.

Transportation Task Force proposes fuel tax increase, readies report to legislature

The 21st Century Missouri Transportation System Task Force is proposing an increase in the state’s fuel tax to support transportation infrastructure.

Representative Kevin Corlew (photo; Tim Bommel, Missouri House Communications)

The Task Force met on Tuesday to finalize the recommendations that will go into the report it will release before the legislative session begins January 3.  It says an increase of 10 cents in the tax on gasoline and of 12 cents in the tax on diesel would generate about $430-million annually for roads and bridges.  $43-million of that would go to counties and $64.5-million would go to municipalities.

Such an increase would have to be put before Missouri voters.

“We really do need an immediate impact investment in transportation to move forward, and to really meet a lot of needs that have been arising over many years of neglect in terms of funding,” said the Task Force’s chairman, Kansas City Republican Kevin Corlew.  “The first thing will be let’s make sure we give our transportation system – the people of Missouri – the shot in the arm in terms of transportation infrastructure that we need.”

The Task Force’s draft report said Missouri’s fuel tax burden is low – 46th in the nation – and the proposed increase would amount to an additional $5 per month for the average Missouri driver.

The report also recommends the implementation of a revenue stream dedicated to multimodal transportation (railways, aviation, mass transportation, ports, waterways, and transportation for the elderly and disabled).  The Task Force suggests restructuring Missouri’s Timely Filing Discount on retail sales or withholding tax and/or the discount given to companies that file employee withholding taxes on time.

“Recognizing that all of us benefit from a transportation system and particularly our retail businesses – and they’ve all come around and testified to us, many business groups, on the importance of it – we feel like that’s an area where there’s no additional taxation but we could restructure that … and not suggesting that we do away completely with that,” said Corlew.

He said a restructuring of the Timely Filing Discount could generate $50- to $70-million, which is the range of amounts the Task Force identified as enough to enhance multimodal transportation.

The Task Force also discussed a need to make transportation revenue sustainable long-term.  Recommendations to that end include increases in usage fees for electric and hybrid vehicles; increases in license, registration, and other non-fuel user fees; exploration of additional taxation of internet sales; and tolling on major bridges.

Other recommendations address safety, exploring and supporting innovation, and considering legislative action to remove barriers to various types of projects, including public-private partnerships.

Corlew said, as he has before, that this Task Force was more than, “just another government study … That’s why we worked extraordinarily hard to find a consensus on some of these solutions, that’s why we reached out to Missouri citizens at our meetings and individual members reached out to their communities at home to get the ideas.”

“We are fully committed to making sure that we really do move our transportation system forward and work as hard as we can to make sure that these recommendations are put into place,” said Corlew.

The Task Force includes 23 members from the state House and Senate, the Governor’s office, members of state agencies including the Departments of Transportation and Economic Development and the Highway Patrol, and representatives of business organizations.  It could continue meeting through the end of 2018.