Truth Alert: Proposition D
In an ABC 17 News Truth Alert, there is a television commercial promoting Proposition D, which is on the November ballot. It would increase Missouri’s fuel tax rate by 10 cents over the next four years.
The money would be used for public safety and road improvements.
The commercial is paid for by SAFERMO.com and starts with the announcer saying, “You wouldn’t get very far with 60 percent of your vehicle gone. That’s how MoDOT must feel. Since 1996, traffic and road miles are way up, but inflation has eroded 60 percent of the buying power of the gas tax. Prop D corrects that.”
It is obvious that 17 cents will not buy what it could back in the 1990s. The inflation rate mentioned in the commercial adds up.
Today, only Alaska’s 14.75 percent state fuel tax is lower than Missouri’s 17 percent rate. These rates do not include the federal excise tax of more than 18 cents a gallon. Ours also has the most state-maintained roadways of our neighboring states.
If Prop D passes, the fuel tax would increase 2 1/2 cents a year until it reaches 27 cents in 2022.
Some critics have pointed out that the bulk of the money raised from this fuel tax, around $288 million, would go to the Missouri State Highway Patrol. The rest, $123 million, would go to local governments for road construction and maintenance.
What does it mean for your community? Once the fuel tax is fully implemented, SAFERMO.com, a website in support of Prop D, shows Columbia would get $1,706,610 per year. Boone County would receive $923,524. Jefferson City would get $677,594. Cole County would collect $624,629.
The ad continues, “It’ll keep our economy growing, reduce vehicle maintenance costs, shorten travel times…”
Road and bridge construction does stimulate the economy, and better roads do, in fact, lead to fewer car repairs.
The construction would cause initial backups, but would eventually reduce bottlenecks and travel times.
Critics of the proposition include people who want no new taxes, and especially do not want a tax hike that will not sunset unless voters decide otherwise.
This is how the measure will appear on the November ballot:
Official Ballot Title
Proposition D
[Proposed by 99th General Assembly (Second Regular Session) SS 2 HB 1460]
Official Ballot Title:
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.
Fair Ballot Language:
A “yes” vote will amend Missouri statutes to fund the Missouri State Highway Patrol’s enforcement and administration of motor vehicle laws and traffic regulations. The source of the funding will be revenue from an increased state tax on motor fuel (including gasoline, diesel fuel, kerosene, and blended fuel). The current state motor fuel tax rate is seventeen (17) cents per gallon. The amendment will increase the rate as follows:
Nineteen and one-half (19.5) cents per gallon beginning July 1, 2019;
Twenty-two (22) cents per gallon beginning July 1, 2020;
Twenty-four and one-half (24.5) cents per gallon beginning July 1, 2021;
Twenty-seven (27) cents per gallon beginning July 1, 2022.
The amendment will also increase the tax on alternative fuels used for motor vehicles (including compressed natural gas, liquid natural gas, and propane gas). The amendment will increase the rate from seventeen (17) cents to twenty-seven (27) cents per unit equivalent to a gallon of gasoline or diesel beginning January 1, 2026.
The amendment will require the state auditor to audit the state’s use of the revenue generated by these taxes every two years.
Additionally, the amendment will allow a state income tax deduction for the value of any prize or award won in the Olympics, Paralympics, or Special Olympics; and it will create an “Emergency State Freight Bottleneck Fund,” which will be dedicated to financing road improvement projects in the state.
A “no” vote will not amend Missouri statutes to increase the motor fuel tax, exempt certain prizes from state taxes or establish the Emergency State Freight Bottleneck Fund.
If passed, this measure will increase taxes on motor fuel.
You may also read the full HB1460 here.
