Missouri Legislature passes 12.5 cent gas tax increase, phased in over four years - headed to Gov for signature and it's done

Today the Missouri Legislature passed a 12.5 per gallon fuel tax increased, to be phased in at the rate of 2.5 cents per year from 2021 to 2025.

Senator Dave Schatz of Sullivan has become a strong support of MoDOT funding and was sponsor of SB 262

Passage of SB 262 by the Missouri House today sends the bill to Governor Parson for a signature.  Infrastructure has been a major emphasis of Governor Parson's administration and he has indicated he will sign the bill.

Unlike previous efforts to increase the fuel tax, this proposal will not go before voters.  Once Governor Parson signs the bill, it will be a done deal.  The gas tax will increase by 2.5 cents per gallon every October until 2025.

MoDOT's funding crisis and the effort to create statewide transportation funding since 2009

Missouri's fuel tax was last raised in 1996. At 17 cents per gallon, it is currently the second lowest fuel tax in the nation--ahead of only Alaska.  Since the fuel tax is not indexed to inflation, the buying power of that 17 cents has decreased substantially since 1996.

Amendment 3, passed in 2004, shifted some further funding to MoDOT.  It moved the remaining 50% of the motor vehicle sales tax--which had previous gone into General Revenue--to MoDOT. In addition, it allowed MoDOT to leverage the new funding by borrowing a large amount of money for six years, devoting about 20 years of the new funding to paying off those loans.

So clearly, Amendment 3 was a stopgap, increasing MoDOT's annual funding for just 6 six years.

Starting in about 2010, MoDOT's funding did decrease dramatically.  The agency slashed both staff and projects in the following years.  However, two major proposals to increase MoDOT funding--one to adopt a new funding mechanism and a far more multi-modal approach, and a second to simply increase the gas tax--both failed at the ballot box.

You can get an overview of MoDOT's funding from 1924 to the present here.

What SB 262--and the decade-long effort to bring bicycling, walking, and public transportation into the discussion about Missouri transportation funding--has done for bicycling and  walking

MoBikeFed has been talking about MoDOT funding crisis for more than a decade. We have seen it as a real opportunity to change how MoDOT does business, and expand the state's vision for transportation beyond simply roads and highways.

Rep. Becky Ruth of Festus was House Handler of the bill that passed today

Today's bill does not contain any sweeping changes for MoDOT or for Missouri's vision for transportation.  It simply increases the state fuel tax, putting more dollars into the existing system.

The good news here is that, thanks to more than a decade's work by MoBikeFed, citizens and advocates across Missouri, many like-minded organizations across Missouri, local agency staff, and MoDOT staff, MoDOT's view of transportation has indeed changed a lot over the past decade.  The recognition of the importance of walking and bicycling as important means of transportation in Missouri has increased year by year.

Just for example, in 2014 MoDOT adopted a new long-range transportation plan, with these goals:

Give Missourians Better Transportation Choices

When looking at what Missourians will need from their transportation system in 20 years, we see the need to diversify our state’s investment beyond roads and bridges.

To serve all Missouri citizens, and to give Missourians better access to employment, healthcare and other essential services, we need to increase scheduled public transit services and improve the reliability of on-time arrivals. The state must continue to support passenger rail service and recognize the important role that pedestrian and bicycle facilities play for those who cannot or choose not to drive.

Keep All Travelers Safe, No Matter the Mode of Transportation

A safe road system also protects public transit passengers and improves the safety of bicyclists and pedestrians.

In 2014, that was--frankly!--a groundbreaking direction for MoDOT. As recently as 1990, MoDOT had no stated policy regarding bicycling or walking as transportation.

MoDOT's policy and attitude towards bicycling and walking have shifted 180 degrees since the discussion of updating MoDOT funding began in 2009.

So it was an important step forward.  And MoDOT still has those same goals in its current long-range plan:

• Keep all travelers safe, no matter the mode of transportation
• Give Missourians better transportation choices

Bicycling and walking have gone from fringe ideas, ignored by most, to being considered core aspects of Missouri's transportation system by nearly every major transportation stakehold statewide.

This is a change that has taken place behind the scenes.  Most Missourians do not even know about it--though if you have been following MoBikeFed News you do!

But it is hard to put into words just how important, sweeping, and dramatic the change in attitudes about walking and bicycling in transportation leadership at all levels across Missouri has been.

And much of the discussion--almost all of it--has been driven by these long-term issues regarding MoDOT's funding and funding shortfalls.

What is in the bill?

SB 262 is sponsored by Senator Dave Schatz and Representative Becky Ruth.  It includes these provisions:

• Increases in the Missouri state fuel tax by 2.5 cents per gallon every October from 2021 to 2025.  This totals 12.5 cents per gallon, phased in over 4 years.
   
• Increases the annual registration fee for electric vehicles by 20% each year for a period of 5 years.
   
• Creates an "Electric Vehicle Task Force" which will analyze and make recommendations regarding the impact of electric vehicles on Missouri transportation funding.
   
• Allows Missourians who wish to do so, to apply for a refund of the fuel tax increase. Those wishing to apply for a refund must keep records and receipts for each fuel purchase, and then apply for a refund annually.

When fully phased in, the fuel tax increase will cost the average Missouri driver about $70 per year.

Missouri electric and hybrid vehicle tags cost between $37.50 and $150 per year.  After five years of 20% increases, the total cost will be about 2.5X the current fee--so the new fees will range from about $93/year to $373/year.  A typical electric passenger car will go from $75/year to $187/year. 

(It is notable that the annual increase for an electric passenger care is over  $110, whereas the estimated cost of the increased fuel tax for a typical gas-powered passenger vehicle is only about $70.)

Read more about SB 262, the recent Missouri House debate on the bill, and statements by supporters and opponents in the Missouri Times and the Kansas City Star.

Working to create a world-class bicycle and pedestrian transportation network across Missouri is one of the four main goals of MoBikeFed's Vision for Bicycling and Walking in Missouri. Working towards statewide policy in support of bicycling and walking, and funding to implement those policies and plans, is an important part of that work.

Your ongoing membership and generous financial support help make our Vision into reality!

Image credits:

• Senator Schatz and Representative Ruth: Missouri General Assembly
• "Waiting for MoDOT" by Zaskem on FlickR