A 2 Cent Hike in Missouri Gas Tax?
April 14, 2015

(AP) – Missouri lawmakers are proposing a 2-cent gas tax increase as a step toward easing a projected funding shortfall that officials warn could result in the deterioration of many roads and bridges.

Similar proposals considered Tuesday by the full Senate and by a House committee would raise the state’s 17-cent fuel tax to 19 cents a gallon in January 2016.

That would bring in about $55 million annually for the transportation department. It would allow the state to match all of its expected federal funds in 2017. But the increase would not be enough to match all federal funds in 2018.

Supporters say the proposed tax increase is a first step toward better transportation funding.

Missouri voters last year rejected a proposed three-quarter cent sales tax to fund transportation.

Missouri Senate Moves Forward With Sales tax Hike for Roads
March 14, 2013

(AP) — Missouri senators endorsed Wednesday a proposed penny sales tax increase that could raise nearly $8 billion over a decade to pay for state and local transportation projects.
The increase would require voter approval and, if passed, would be resubmitted to the ballot after 10 years for Missourians to decide whether to continue.
Sponsoring Sen. Mike Kehoe, who served on the Missouri Highways and Transportation Commission before joining the Legislature, said the state needs to boost transportation funding and that the available options are limited. He said the gas tax would need to be increased by 20 to 25 cents to generate equivalent revenue.
“Missourians realize there is a need for investment in our infrastructure. They recognize the return for that,” said Kehoe, R-Jefferson City. He said the measure could support as many as 270,000 jobs in Missouri over a decade.
The sales tax proposal was given first-round approval Wednesday and needs another affirmative vote before moving to the House. The House Transportation Committee has embraced a similar measure, but Speaker Tim Jones previously has said he would prefer that a sales tax increase be revenue neutral.
Preliminary approval in the Senate for the transportation sales tax came shortly before the Legislature’s annual midsession recess. The weeklong break frequently is a demarcation line for proposals that are advancing and those that have become bogged down.
Under the Senate measure, the state transportation commission would develop a list of projects to be funded before the tax appears on the ballot. If voters pass it, the commission would produce an annual status report for the Legislature and the governor.
Ten percent of the revenue would go to cities and counties for local transportation needs. The remainder would be for state projects and could go to highways, bridges and other transportation needs such as ports, railroads and mass transportation. Senators rejected an effort to reserve a portion of the state’s proceeds for projects other than highways and bridges.
When the transportation sales tax is in effect, voter approval would be needed to change the gas tax rate or place tolls on existing roads and bridges.