What happened: Missouri lawmakers May 11 approved raising the state gas tax 12.5 cents per gallon over five years. The bill could increase funding for roads and bridges by $514 million annually. The measure also would increase electric vehicle fees and permit residents to seek refunds of passenger vehicle motor fuel taxes paid in the state. It also authorizes a task force to analyze and make recommendations regarding the impact of electric vehicle adoption on transportation funding.
Why it matters: Missouri hasn’t increased its gas tax in 25 years. The state has struggled to raise new revenue for transportation due to a constitutional law requiring voter approval on any significant tax or fee increase. Lawmakers met the amendment’s requirement by limiting the proposed gas tax increase to 2.5 cents annually.
What’s next: Gov. Mike Parsons (R) is expected to sign the bill into law before the 15-day deadline.
Key resources: A Missouri Chamber of Commerce analysis says the increase would have a nearly $2 billion economic impact for the state and create 17,000 jobs. See other state transportation funding activity on the ARTBA-TIAC legislative dashboard.