Missouri Gov. Mike Parsons (R) signed Senate Bill 262 (SB 262) into law on July 13, 2021. It increases the state gas tax by 12.5 cents per gallon over five years – from 17 cents per gallon to 29.5 cents per gallon by 2026.
Facing an $825 million annual priority project backlog, it was the first time since 1992 that Missouri increased its gas tax.
The law, modeled after similar 2016 legislation passed in South Carolina allows Missourians to claim a refund for the increased portion of fuel taxes paid. The increase will raise $513.7 million.
SB 262 also:
- Raises the fee on alternative-fuel vehicles.
- Establishes an Electric Vehicle Task Force designed to create a long-term transportation funding plan amidst a rising number of electric and hybrid vehicles.
Long-time infrastructure advocate and President Pro Tem of the Missouri Senate Sen. Dave Schatz (R-26) sponsored SB 262. He and other state lawmakers, along with outside groups, rallied robust bilateral support. The state House of Representatives passed the bill 104-52, and the Missouri Senate by 21-13.
Read the Missouri SB 262 case study.
The Transportation Investment Advocacy Center (TIAC) staff researches and prepares detailed case studies of successful — and unsuccessful — state and local legislative and ballot initiatives to increase transportation infrastructure investment. Each study explores the key players, politics, issues, and media involved in the effort, and summarizes campaign “best practices.”