The Missouri House of Representatives truly agreed to and finally passed SS #2 HB 1460 by a vote of 88-60. This bill will place a phased-in, 10-cent, motor fuel tax increase before a vote of the people in November.The bill calls for an increase in motor fuel tax from $0.17/gallon to $0.27/gallon over a four year period, with an annual increase of 2.5 cents per gallon per year. In addition, the act provides, that beginning January 1, 2026, alternative fuels shall be taxed at an equivalent rate to the rate on the motor fuel tax.
This change in motor fuel tax is expected to generate at least $288 million annually to the State Road Fund to provide for the funding of Missouri State Law enforcement and $123 million annually to local governments for road construction and maintenance.
Ballot language:
Shall Missouri law be amended to fund Missouri state law enforcement by increasing the motor fuel tax by two and one half cents per gallon annually for four years beginning July 1, 2019, exempt Special Olympic, Paralympic, and Olympic prizes from state taxes, and to establish the Emergency State Freight Bottleneck Fund?
If passed, this measure will generate at least $288 million annually to the State Road Fund to provide for the funding of Missouri state law enforcement and $123 million annually to local governments for road construction and maintenance.