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Author Topic: Missouri Gov. signs gas tax  (Read 2760 times)

edwaleni

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Missouri Gov. signs gas tax
« on: July 14, 2021, 04:58:36 PM »

https://wgem.com/2021/07/13/gov-parson-signs-bill-raising-gas-tax/

(WSIL) — Gov. Mike Parson has signed SB 262 into law, which aims to increase transportation funding for state and local infrastructure projects across Missouri.

“With nearly $1 billion in unfunded transportation needs each year, we can no longer wait for another day or another generation. We must change course and address these problems head-on,” Governor Parson said. “SB 262 provides vital revenue that will help us fund essential road and bridge projects all across the state. Quality roads and bridges increase the efficiency and safety of our roadways, invite travelers and business investment, and save Missourians money.”

All revenue that SB 262 will generate is constitutionally required to be used to maintain roads, bridges, and the overall transportation system.

The law will gradually raise the state’s 17-cent-a-gallon gas tax to 29.5 cents over five years.

The first 2.5-cent increase is slated to take effect in October, which will bring the gas tax to 19.5 cents.

However, Missourians that do not wish to increase their contributions to state and local roadway repair and replacement projects can submit the required documentation – including fuel receipts – to the Missouri Department of Revenue each year for a refund.

Missouri has the seventh-largest transportation system in the nation but only ranks 45th in available revenue per road mile.

A conservative advocacy group’s Missouri chapter is trying to put the gas tax hike to a public vote in 2022.

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I-39

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Re: Missouri Gov. signs gas tax
« Reply #1 on: July 14, 2021, 05:02:37 PM »

https://wgem.com/2021/07/13/gov-parson-signs-bill-raising-gas-tax/

(WSIL) — Gov. Mike Parson has signed SB 262 into law, which aims to increase transportation funding for state and local infrastructure projects across Missouri.

“With nearly $1 billion in unfunded transportation needs each year, we can no longer wait for another day or another generation. We must change course and address these problems head-on,” Governor Parson said. “SB 262 provides vital revenue that will help us fund essential road and bridge projects all across the state. Quality roads and bridges increase the efficiency and safety of our roadways, invite travelers and business investment, and save Missourians money.”

All revenue that SB 262 will generate is constitutionally required to be used to maintain roads, bridges, and the overall transportation system.

The law will gradually raise the state’s 17-cent-a-gallon gas tax to 29.5 cents over five years.

The first 2.5-cent increase is slated to take effect in October, which will bring the gas tax to 19.5 cents.

However, Missourians that do not wish to increase their contributions to state and local roadway repair and replacement projects can submit the required documentation – including fuel receipts – to the Missouri Department of Revenue each year for a refund.

Missouri has the seventh-largest transportation system in the nation but only ranks 45th in available revenue per road mile.

A conservative advocacy group’s Missouri chapter is trying to put the gas tax hike to a public vote in 2022.

It’s about darn time. Not nearly enough IMO, but it’s something.

Hopefully that conservative group doesn’t derail it.
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kphoger

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Re: Missouri Gov. signs gas tax
« Reply #2 on: July 14, 2021, 08:05:47 PM »

Missouri has the seventh-largest transportation system in the nation but only ranks 45th in available revenue per road mile.

Time to decommission a bunch of lettered highways...
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Re: Missouri Gov. signs gas tax
« Reply #3 on: July 14, 2021, 08:27:25 PM »

https://wgem.com/2021/07/13/gov-parson-signs-bill-raising-gas-tax/
However, Missourians that do not wish to increase their contributions to state and local roadway repair and replacement projects can submit the required documentation – including fuel receipts – to the Missouri Department of Revenue each year for a refund.

This seems like a, shall we say, unique feature of this law.
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vdeane

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Re: Missouri Gov. signs gas tax
« Reply #4 on: July 14, 2021, 08:53:51 PM »

https://wgem.com/2021/07/13/gov-parson-signs-bill-raising-gas-tax/
However, Missourians that do not wish to increase their contributions to state and local roadway repair and replacement projects can submit the required documentation – including fuel receipts – to the Missouri Department of Revenue each year for a refund.

This seems like a, shall we say, unique feature of this law.
Yeah, it seems like they only raised the tax on people not from Missouri, while giving people who are from Missouri a bunch of bureaucracy to deal with.  Ridiculous.
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Scott5114

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Re: Missouri Gov. signs gas tax
« Reply #5 on: July 14, 2021, 09:00:37 PM »

https://wgem.com/2021/07/13/gov-parson-signs-bill-raising-gas-tax/
However, Missourians that do not wish to increase their contributions to state and local roadway repair and replacement projects can submit the required documentation – including fuel receipts – to the Missouri Department of Revenue each year for a refund.

This seems like a, shall we say, unique feature of this law.
Yeah, it seems like they only raised the tax on people not from Missouri, while giving people who are from Missouri a bunch of bureaucracy to deal with.  Ridiculous.

I mean, let's be real here. How many people are actually going to go through the trouble of saving the receipt every time they gas up and file a return to get a refund of 12½’/gallon? Quick googling suggests that the average person uses 656 gallons of gas a year, so you could potentially get a return of $82. That's not an insubstantial amount of money, but there are plenty of people that couldn't be bothered to put in the work to avail themselves of it.
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I-39

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Re: Missouri Gov. signs gas tax
« Reply #6 on: July 14, 2021, 10:29:22 PM »

https://wgem.com/2021/07/13/gov-parson-signs-bill-raising-gas-tax/
However, Missourians that do not wish to increase their contributions to state and local roadway repair and replacement projects can submit the required documentation – including fuel receipts – to the Missouri Department of Revenue each year for a refund.

This seems like a, shall we say, unique feature of this law.
Yeah, it seems like they only raised the tax on people not from Missouri, while giving people who are from Missouri a bunch of bureaucracy to deal with.  Ridiculous.

What?

That is insane. You use the roads, you pay for them. Missouri is so backwards.
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SkyPesos

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Re: Missouri Gov. signs gas tax
« Reply #7 on: July 14, 2021, 11:25:39 PM »

Pass over the lettered highways to the counties...
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wanderer2575

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Re: Missouri Gov. signs gas tax
« Reply #8 on: July 15, 2021, 12:06:45 AM »

https://wgem.com/2021/07/13/gov-parson-signs-bill-raising-gas-tax/
However, Missourians that do not wish to increase their contributions to state and local roadway repair and replacement projects can submit the required documentation – including fuel receipts – to the Missouri Department of Revenue each year for a refund.

This seems like a, shall we say, unique feature of this law.
Yeah, it seems like they only raised the tax on people not from Missouri, while giving people who are from Missouri a bunch of bureaucracy to deal with.  Ridiculous.

What?

That is insane. You use the roads, you pay for them. Missouri is so backwards.

What backwards?  This isn't any different than municipalities that enact taxes on hotels and car rentals.  That's just as insane.  But legislative leaders always pat themselves on the back for getting someone else to pay for what they want.

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Re: Missouri Gov. signs gas tax
« Reply #9 on: July 15, 2021, 01:08:58 AM »

https://wgem.com/2021/07/13/gov-parson-signs-bill-raising-gas-tax/
However, Missourians that do not wish to increase their contributions to state and local roadway repair and replacement projects can submit the required documentation – including fuel receipts – to the Missouri Department of Revenue each year for a refund.

This seems like a, shall we say, unique feature of this law.
Yeah, it seems like they only raised the tax on people not from Missouri, while giving people who are from Missouri a bunch of bureaucracy to deal with.  Ridiculous.

It seems that nonresidents will also be allowed to claim a refund, although it's likely they won't know about it.

https://www.kansascity.com/news/politics-government/article252736678.html
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I-39

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Re: Missouri Gov. signs gas tax
« Reply #10 on: July 15, 2021, 08:42:36 AM »

https://wgem.com/2021/07/13/gov-parson-signs-bill-raising-gas-tax/
However, Missourians that do not wish to increase their contributions to state and local roadway repair and replacement projects can submit the required documentation – including fuel receipts – to the Missouri Department of Revenue each year for a refund.

This seems like a, shall we say, unique feature of this law.
Yeah, it seems like they only raised the tax on people not from Missouri, while giving people who are from Missouri a bunch of bureaucracy to deal with.  Ridiculous.

What?

That is insane. You use the roads, you pay for them. Missouri is so backwards.

What backwards?  This isn't any different than municipalities that enact taxes on hotels and car rentals.  That's just as insane.  But legislative leaders always pat themselves on the back for getting someone else to pay for what they want.

The backwards part being this:

Missourians that do not wish to increase their contributions to state and local roadway repair and replacement projects can submit the required documentation – including fuel receipts – to the Missouri Department of Revenue each year for a refund.

This is insanity on another level. You use the roads, you should pay for them. Period. Why on earth did Missouri allow for something like this?
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hbelkins

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Re: Missouri Gov. signs gas tax
« Reply #11 on: July 15, 2021, 11:36:02 AM »

https://wgem.com/2021/07/13/gov-parson-signs-bill-raising-gas-tax/
However, Missourians that do not wish to increase their contributions to state and local roadway repair and replacement projects can submit the required documentation – including fuel receipts – to the Missouri Department of Revenue each year for a refund.

This seems like a, shall we say, unique feature of this law.
Yeah, it seems like they only raised the tax on people not from Missouri, while giving people who are from Missouri a bunch of bureaucracy to deal with.  Ridiculous.

What?

That is insane. You use the roads, you pay for them. Missouri is so backwards.

What backwards?  This isn't any different than municipalities that enact taxes on hotels and car rentals.  That's just as insane.  But legislative leaders always pat themselves on the back for getting someone else to pay for what they want.

The backwards part being this:

Missourians that do not wish to increase their contributions to state and local roadway repair and replacement projects can submit the required documentation – including fuel receipts – to the Missouri Department of Revenue each year for a refund.

This is insanity on another level. You use the roads, you should pay for them. Period. Why on earth did Missouri allow for something like this?

They're already paying for the roads. They just don't want to pay more for them. It may have also been the only way to get the law passed.
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edwaleni

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Re: Missouri Gov. signs gas tax
« Reply #12 on: July 15, 2021, 12:42:03 PM »

https://wgem.com/2021/07/13/gov-parson-signs-bill-raising-gas-tax/
However, Missourians that do not wish to increase their contributions to state and local roadway repair and replacement projects can submit the required documentation – including fuel receipts – to the Missouri Department of Revenue each year for a refund.

This seems like a, shall we say, unique feature of this law.
Yeah, it seems like they only raised the tax on people not from Missouri, while giving people who are from Missouri a bunch of bureaucracy to deal with.  Ridiculous.

What?

That is insane. You use the roads, you pay for them. Missouri is so backwards.

What backwards?  This isn't any different than municipalities that enact taxes on hotels and car rentals.  That's just as insane.  But legislative leaders always pat themselves on the back for getting someone else to pay for what they want.

The backwards part being this:

Missourians that do not wish to increase their contributions to state and local roadway repair and replacement projects can submit the required documentation – including fuel receipts – to the Missouri Department of Revenue each year for a refund.

This is insanity on another level. You use the roads, you should pay for them. Period. Why on earth did Missouri allow for something like this?

1 answer. Trucking lobby.
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vdeane

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Re: Missouri Gov. signs gas tax
« Reply #13 on: July 15, 2021, 01:30:40 PM »

https://wgem.com/2021/07/13/gov-parson-signs-bill-raising-gas-tax/
However, Missourians that do not wish to increase their contributions to state and local roadway repair and replacement projects can submit the required documentation – including fuel receipts – to the Missouri Department of Revenue each year for a refund.

This seems like a, shall we say, unique feature of this law.
Yeah, it seems like they only raised the tax on people not from Missouri, while giving people who are from Missouri a bunch of bureaucracy to deal with.  Ridiculous.

What?

That is insane. You use the roads, you pay for them. Missouri is so backwards.

What backwards?  This isn't any different than municipalities that enact taxes on hotels and car rentals.  That's just as insane.  But legislative leaders always pat themselves on the back for getting someone else to pay for what they want.

The backwards part being this:

Missourians that do not wish to increase their contributions to state and local roadway repair and replacement projects can submit the required documentation – including fuel receipts – to the Missouri Department of Revenue each year for a refund.

This is insanity on another level. You use the roads, you should pay for them. Period. Why on earth did Missouri allow for something like this?

They're already paying for the roads. They just don't want to pay more for them. It may have also been the only way to get the law passed.
Construction costs are going up.  Inflation is always a thing.  And cars are more fuel efficient than they were.  Why shouldn't they pay more?  It's like never getting a raise, ever, even when the cost of living goes up.
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SP Cook

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Re: Missouri Gov. signs gas tax
« Reply #14 on: July 15, 2021, 02:22:14 PM »



All revenue that SB 262 will generate is constitutionally required to be used to maintain roads, bridges, and the overall transportation system.


One of the biggest lies government tells people.  Pick a need or want that most people desire and then claim that the latest tax hike is for that.

Money, of course, is fungible.  When analyzing any tax hike, think of the worst, most counter productive, wrong-headed, and silly thing that level of government does and understand that the tax hike is going to that.
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kphoger

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Re: Missouri Gov. signs gas tax
« Reply #15 on: July 15, 2021, 03:34:38 PM »

Time to decommission a bunch of lettered highways...

Pass over the lettered highways to the counties...

Glad you agree!
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Re: Missouri Gov. signs gas tax
« Reply #16 on: July 15, 2021, 04:37:59 PM »

It's weird to see an opt-out of a tax.

Massachusetts has an opt-in to pay the older, higher 5.9% income tax instead of the 5% income tax when you file state taxes annually.
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hbelkins

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Re: Missouri Gov. signs gas tax
« Reply #17 on: July 15, 2021, 05:07:54 PM »

Time to decommission a bunch of lettered highways...

Pass over the lettered highways to the counties...

Glad you agree!

But...

How do Missouri counties fund their road systems? In Kentucky, funding for county roads comes from the state's gas tax. A certain percentage of the tax revenues are set aside for local government based on a formula taking into account population, land area, and system mileage. And then the state (KYTC) can provide additional funding to local governments. There are no local tax revenue sources at the county level to fund roads.

It's weird to see an opt-out of a tax.

Massachusetts has an opt-in to pay the older, higher 5.9% income tax instead of the 5% income tax when you file state taxes annually.

An option for which I'm sure all those who have ever uttered the phrase, "I would gladly pay more in taxes if it would help (insert cause or purpose)" avail themselves of. [/sarcasm]
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kphoger

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Re: Missouri Gov. signs gas tax
« Reply #18 on: July 15, 2021, 05:14:49 PM »



Time to decommission a bunch of lettered highways...

Pass over the lettered highways to the counties...

Glad you agree!

But...

How do Missouri counties fund their road systems? In Kentucky, funding for county roads comes from the state's gas tax. A certain percentage of the tax revenues are set aside for local government based on a formula taking into account population, land area, and system mileage. And then the state (KYTC) can provide additional funding to local governments. There are no local tax revenue sources at the county level to fund roads.

A question beyond my knowledge, but some quick & dirty Google searching led me to these:

https://showmeinstitute.org/blog/taxes/local-road-funding-in-missouri
https://www.mocounties.com/cart-fund-distribution.php
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Re: Missouri Gov. signs gas tax
« Reply #19 on: July 15, 2021, 05:28:31 PM »

If Missouri were to decommission some or all of the Lettered roads, the increase in the gas tax needs to go exclusively to the counties, and then some. Over half of MoDOT's highway system is composed of the lettered roads.
According to MoDOT's Fast Facts, the 17 cent gas tax is distributed as such:

17 cents per gallon – gasoline and diesel.
2.55 cents goes to cities
2 cents goes to counties
12.45 cents goes to MoDOT

With their current budgets, I can't envision most counties in the rural Ozarks maintaining these roads, At least not to the quality the roads have under the state. Remember, residents of these rural counties will be the ones voting against this new gas tax if it comes up on the ballot.

Take Shannon County as an example. It is one of the most, if not the poorest county in the state. It has a conservative voting record, which includes voting against the recent Medicaid Expansion. Yet, many of its Lettered roads lead to areas important for tourism (various locations in the Ozark National Scenic Riverways), a significant source of revenue for the county.
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edwaleni

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Re: Missouri Gov. signs gas tax
« Reply #20 on: July 16, 2021, 10:15:14 AM »



Time to decommission a bunch of lettered highways...

Pass over the lettered highways to the counties...

Glad you agree!

But...

How do Missouri counties fund their road systems? In Kentucky, funding for county roads comes from the state's gas tax. A certain percentage of the tax revenues are set aside for local government based on a formula taking into account population, land area, and system mileage. And then the state (KYTC) can provide additional funding to local governments. There are no local tax revenue sources at the county level to fund roads.

A question beyond my knowledge, but some quick & dirty Google searching led me to these:

https://showmeinstitute.org/blog/taxes/local-road-funding-in-missouri
https://www.mocounties.com/cart-fund-distribution.php

Thanks for this, fantastic resource for knowing how the money is flowing, especially the CART information.

It is fascinating how each state has developed their own policies for road funding. Some people find it maddening, but it exemplifies our form of government pretty well.
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kalvado

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Re: Missouri Gov. signs gas tax
« Reply #21 on: July 16, 2021, 12:41:36 PM »

https://wgem.com/2021/07/13/gov-parson-signs-bill-raising-gas-tax/
However, Missourians that do not wish to increase their contributions to state and local roadway repair and replacement projects can submit the required documentation – including fuel receipts – to the Missouri Department of Revenue each year for a refund.

This seems like a, shall we say, unique feature of this law.
Yeah, it seems like they only raised the tax on people not from Missouri, while giving people who are from Missouri a bunch of bureaucracy to deal with.  Ridiculous.

What?

That is insane. You use the roads, you pay for them. Missouri is so backwards.
Non-local, preferably out-of-state visitors are often the prime target for tax as they don't vote in the jurisdiction and cannot object tax increases making such taxation politically simple. Airport, hotel, rental car taxes are pretty much that - money grab from outsiders. Both red and blue jurisdictions are alike.
Some examples:
Boston convention Center Fee of $10 is charged once per month on rental cars (that is, $10 per rentals under 1 month)
Kansas city imposes a $4-per-day Downtown Arena Fee on rental cars
There are many more examples, these are just top 2 results in google search.
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Re: Missouri Gov. signs gas tax
« Reply #22 on: July 16, 2021, 01:57:54 PM »

Kansas city imposes a $4-per-day Downtown Arena Fee on rental cars

Yeah. I remembered paying that the one time I rented a car from the airport. Luckily I only had to rent for a day.

I would guess there will be another fee added when the new airport opens.
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hbelkins

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Re: Missouri Gov. signs gas tax
« Reply #23 on: July 16, 2021, 01:58:40 PM »

Wasn't this behind various proposals to slap tolls on existing free interstates? Trying to snag revenue from travelers?

In Kentucky, the best road to toll for that purpose would be I-24. It doesn't really serve a lot of in-state traffic, other than between Paducah and the end of the WK Parkway. On the other hand, Kentucky residents use 64, 65, 71, and 75 much more frequently to get to the state's big urban areas.
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edwaleni

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Re: Missouri Gov. signs gas tax
« Reply #24 on: July 16, 2021, 02:07:17 PM »

Kansas city imposes a $4-per-day Downtown Arena Fee on rental cars

Yeah. I remembered paying that the one time I rented a car from the airport. Luckily I only had to rent for a day.

I would guess there will be another fee added when the new airport opens.

When autonomous Uber/Lyft vehicles come around, they will undercut these airport rentals in price and the fees will evaporate if not replaced.
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