Missouri Gas Tax Increases in Decades After the Sign of SB 262

George Vandervalk

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SAINT LOUIS, MO – The transportation funding for critical state and local infrastructure projects will increase after Governor Mike Parson has signed SB 262 into law in the state of Missouri. This sign gives impact to motor fuel tax that will increase by 2.5 cents per year.

SB 262 is modifying provision from each state that is related to transportation in the state. This means SB 22 is providing Missouri’s roads and bridge revenue and will take into 12.5 cents by 2025 regarding the increase of motor fuel tax.

Missouri is in the 45th position for available revenue per road mile, although it is the 7th largest transportation system. Besides, Missouri is also the 3rd lowest gas tax, which is 17-cents, behind Alaska and Hawaii. In 2025, the gas tax will be at 29.5 cents. This is the first time in decades that Missouri is increasing the gas tax, where the last time Missouri raised the gas tax was in 1996. This plan aims to generate $400 to $500 million for additional annual revenue.

On the other hand, the increasing tax will not provide directly to transit providers in Missouri because of the Missouri constitutional language. It will only impact the roads and the bridges as the public facilities that transit providers use.

The State Road Funs will be estimated at $330 million per year by the Missouri Department of Transportation (MoDOT), and nearly $125 million, which is approximately 30% of total revenue for the cities and counties for local transportation projects.

All revenue from SB 262 will generate to maintain roads, bridges, and any other public facilities. MoDOT will use these funds to cover over $8.25 billion funding gap that has been identified for the next 10 years for annual transportation necessities.

The Missouri Department of Revenue will accept the required documents each year for those who are not on the same page to increase their contribution to state and local roadway for a refund.

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