Parson says he is ready to sign gas tax increase into law
COLUMBIA, Mo. (KMIZ)
Gov. Mike Parson said Wednesday he is ready to sign a bill that will increase Missouri's gas tax.
"It's long overdue. I firmly believe in this as I said infrastructure and workforce development are the two priorities of the state," Parson said in an interview with ABC 17 News.
The bill is now on Parson's desk after the GOP-led House voted Tuesday 104-52 in favor of the gas tax increase.
Daniel Mehan, president of the Missouri Chamber of Commerce, said this will be the first transportation funding increase in Missouri since the 1990s if Parson signs the bill. He said passing the bill is a big step toward ensuring Missouri remains a leading transportation hub in the Midwest.
"If you're rebuilding a mile of road, think about how much more that costs today versus 1995," Mehan said. He said the bill will also have a $1.8 billion positive impact on the economy and create more than 17,000 jobs annually.
The bill will provide about $500 million more each year to the Missouri Department of Transportation for roads and bridges by increasing the gas tax by 2.5 cents every year for a five-year period. The tax is currently 17.4 cents per gallon, among the lowest in the country. Mehan said MoDOT is underfunded and contractors are looking for jobs elsewhere.
A MoDOT spokeswoman said the agency will first tackle projects on a high-priority unfunded needs list developed with regional planning partners across Missouri. Projects will be funded off this list as new revenue is available.
A White House assessment released in April gave Missouri a C- for infrastructure.
"Damaged roads are not only a safety issue for drivers but can cost drivers big," Nick Chabarria with AAA said. "AAA research found that the average repair cost from pothole damage can be around $300."
The average gas price in Missouri is $2.75 per gallon, also among the lowest in the country. The national average is currently $3, according to AAA.
Missouri has the second-lowest gas tax in the country just ahead of Alaska. Mehan said even with the increase in price by 12.5 cents over the next five years, the state would be around the average gas tax of the surrounding states.
Chabarria said the bill includes a provision for Missourians to get a rebate on any fuel tax increase after the bill is put into law.
Parson said, "I think it was a good move by the legislative body to be able to put the rebate in there, but I think the vast majority of going to understand the importance of our highway systems, our airports."
South Carolina has a similar gas tax rebate system. For 2019 returns, the state set aside $65 million for the tax credit, which that year was based on 5 cents per gallon. Just $3.4 million was claimed on income tax returns.
The bill survived an effort to put a question before voters as representatives debated Thursday. Several representatives, including Sara Walsh, R-Ashland, supported the push to put the tax before voters. Voters rejected a gas tax increase in 2018.
Parson has 15 days to sign the bill making it a law. If he vetoes the bill it will go back to the General Assembly where a two-thirds vote of both houses will be needed to override the veto. If he takes no action within the time period, the bill goes to the Secretary of State and becomes a law.
