Missouri Lawmakers Considering Sales Tax Increase to Fund Transportation

As reported by Better Roads, the Missouri Senate passed a less than 1-cent sales tax increase to generate revenue for transportation.

If approved by the legislature, the 3/4-cent sales tax hike would generate $534 million each year for 10 years.

This measure will now go to the House, which formerly passed a 1 cent sales tax for transportation.

An article in the Kansas City Star provides more details on the legislation.

Under the legislation, the sales tax would need to be reauthorized by voters every 10 years, starting in 2024. Most of the revenue would go to roads and bridges, but some could be used to construct or operate other facilities, including railroads, ports, airports and transportation for disabled people.

Ten percent of the revenue would go toward local transportation projects.

The tax increase would not apply to purchases of food, and the constitutional amendment would bar the state from raising the gas tax or implementing toll roads during the lifespan of the sales tax.