The Senate Ways & Means Committee passed the Senate Committee Substitute for Senate Bill 617 (SCS SB617) on February 13. The bill would make a number of changes to Missouri’s tax code including an increase of six cents to the state motor fuel tax. This increase would be phased in over the course of three years.
The Missouri Public Transit Association continues to watch all bills with regards to transportation funding. Funding generated through an increase in the motor fuel tax is however limited to roads and bridges according to the Missouri Constitution.
Beginning August 28, 2018, passage of this bill would increase the rate of motor fuel tax from $0.17/gallon to $0.19/gallon. Beginning, August 28, 2019, the rate of tax would be $0.21/gallon, and in 2020, the tax would go to $0.23/gallon. This bill is passed would also increase the rate of tax on compressed natural gas, liquified natural gas, and propane gas fuels to $0.23/gallon equivalent beginning on January 1, 2026.
The bill now moves to the full senate for consideration. If passed, the bill would not require a vote of the people.