A gas tax proposal that would increase the price of fuel to 29.5 cents over five years was unanimously approved by the Missouri House committee this week.
SB 262, sponsored by Sen. Dave Schatz (R-Sullivan), is now on its way to Gov. Michaeil Parson.
“This is the first time we've raised the gas tax in 25 years,” said Ross Lien, director of legislative affairs with the Missouri Chamber of Commerce & Industry. “In 1992, was the last time a gas tax increase was passed, which was fully implemented in 1996. So, it's been a very long time that the gas tax has been stagnant at 17 cents, and the buying power of 17 cents now is a lot less than it was back then.”
As previously reported, the bill aims to correct the state’s $825 million annual transportation funding shortfall.
“This will infuse $500 million a year into our roads and bridges and our transportation system,” Lien told the St. Louis Record. “It will create jobs and bring construction industry jobs back to Missouri that had been leaving. It will be good for interstate commerce and for moving goods and services across state lines. It is a big win for the state, our economy, and public safety.”
But the bill was not without opposition. While a majority of House Republicans supported SB 262, the strongest opposition was from conservative Republicans, according to Lien.
“The bill was on the floor for about four hours,” Lien said. “There were a few amendments offered and a group of folks who tried to defeat it but ultimately the bill passed with 104 votes in favor of it, which is a pretty significant margin. There was a lot of support and we're really happy it was approved.”
According to Missouri Chamber of Commerce & Industry data, once signed by Gov. Parson, the transportation funding bill will have a $1.8 billion positive impact on the economy statewide, will increase earnings by $722 million, and create 17,000 jobs yearly.
“Every single Democrat voted for it and a large majority of Republicans obviously voted for it,” Lien added. “The folks who were against it were some of the further right conservatives that didn’t vote for because of the word tax. There are some who think the Missouri Department of Transportation is not using money efficiently. Obviously, we don't feel that way. There are reports that say the state’s transportation department is the second most efficient in the country.”
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.
“The passage of this crucial legislation marks a tremendous effort by our Missouri Can't-Wait Coalition and the hundreds of businesses and individuals who joined us in support of funding our transportation future,” said Daniel P. Mehan, president, and CEO of the Missouri Chamber of Commerce and Industry, in a statement online.
“It was incredible to see how this issue united business and labor, rural and urban interests, Republicans and Democrats alike. Passage of this bill is a huge step toward ensuring that Missouri remains a leading transportation hub in the Midwest. It will help our state meet the infrastructure needs of all Missourians — from major interstate repairs to local bridge replacements.”