A gas tax proposal that would increase the price of fuel by 12.5 cents over five years was unanimously approved in a House committee last week.
“Transportation is severely underfunded in Missouri and we've got to do something about it if we want to stay competitive, not only in the Midwest but across the country,” said Ross Lien, director of legislative affairs with the Missouri Chamber of Commerce & Industry.
The House Transportation Committee passed Senate Bill 262, which would provide more than $500 million annually in funding for the state’s transportation system, which includes roads and bridges.
“At the committee hearing, there were 50 people who testified in support of the bill and there were another 25 who sent in written testimony and no opposition,” Lien told the St. Louis Record. “It’s not surprising the bill was voted on unanimously.”
Sponsored by Sen. Dave Schatz (R-Sullivan), SB 262 aims to address the state’s $825 million annual transportation funding shortfall, according to a press release.
“It will create 17,000 jobs and they will be high-paying jobs, which will, in turn, create income taxes and other types of revenue for the state,” Lien said in an interview. “It will also increase the state's ability to grow the economy and increase our ability to bring goods and services across state lines.”
The bill is now pending with the House Rules Committee on Legislative Oversight.
“It's a more conservative committee than the House Transportation Committee but I think that will make it through the rules committee and we'll have some time left with two weeks to get it on the floor,” Lien said. “I'm confident that once the bill gets to the floor, it has the votes to pass.”
As previously reported, SB 262 includes a provision that would facilitate a refund for Missourians who don’t want to pay the increase and would establish an Electric Vehicle Task Force to analyze and issue a report about the impact of electric vehicle adoption on transportation funding.
“This bill will also increase the fees that we currently have on electric vehicles, which will be phased in like the motor fuel tax so that fees will double over the next five years,” Lien said. “Right now, there's not a ton of electric and alternative fuel vehicles on the roads, but 10, 20, or 30 years from now, we might be at a hundred percent electric vehicles and Missourians need to be ready for that.”
Currently, electric car drivers pay a $75 sticker fee upon purchase but if SB 262 is approved, the price would double.
“If 80% of the vehicles on the road are electric vehicles, the motor fuel tax will no longer be the primary source of funding,” Lien said. “So, we need to ensure that we have a source to get revenues and fees from electric vehicles so that we can sustain our roads and bridges without the gas tax if we get to that point in the future. It's an important task force.”
The average state funds its transportation system at $241,277 per mile while Missouri dedicates only $57,151 per mile but approving Senate Bill 262 could create a $1.8 billion positive impact on Missouri’s economy including $722 million in earnings, according to a Missouri Can't-Wait study.
“Business and labor, rural and urban interests, Republicans and Democrats all agree that Missouri can no longer ignore the need to invest in the safety of our citizens and our economic future,” said Daniel P. Mehan, president, and CEO of the Missouri Chamber of Commerce and Industry. “With this action taken by the Missouri House Transportation Committee, we have never been closer to finally passing this vital funding for our transportation system. We now call on the Missouri House to finish the job. In this year of recovery, there’s nothing better we could do than invest in our transportation system. It’s time to act — Missouri can’t wait.”
The Missouri Chamber of Commerce and Industry is among a coalition of Missouri stakeholders that have come together to advocate for transportation funding this year. Other stakeholders include the Aurora Area Chamber of Commerce, Cape Girardeau Area Chamber of Commerce, East Prairie Chamber of Commerce, EFK Moen, El Dorado Springs Chamber of Commerce, Carter Broadcast Group, the Citadel Center Homeowners Association, and the Clinton Chamber of Commerce.