New Missouri gas tax takes effect with refund provision

Missouri's gas tax increased Friday for the first time in 25 years, but it is still possible to save some money if you keep all of your receipts.

Drivers filling up their tanks in Missouri will pay an additional 2.5 cents per gallon of gas effective Friday. Gov. Mike Parson signed the increase into law in July. The tax is set to increase by the same amount yearly between 2021 and 2025. At the end of 2025, the state's tax rate will sit at 29.5 cents per gallon.

The tax increase could raise about $500 million dollars more each year for the state. Missouri plans to use the extra money to repair roads and bridges. However, the increase in taxes may not be enough money for the state to stay on top of repairs. The Missouri Department of Transportation faces a $745 million gap for high-priority road and bridgework.

Those eligible for the gas refund may find the process a bit tedious. To claim a refund Missouri residents must have their vehicle identification number, date of the purchase, name or address of the customer and seller, number of gallons purchased, and the amount charged under Missouri's fuel tax. The refund is only for the increased portion of the tax.

For someone who drove 15,000 in a year in a vehicle averaging 30 miles per gallon, the refund on the 2.5-cent tax would be $12.50.

Drivers must keep all of their receipts for three years and can only submit a claim once a year. Missourians will be eligible to receive their first refund on July 1, 2022.

Missouri resident Michael Cromwell said the increase in gas prices is really painful to hear and he encourages Missouri residents to switch to electric model cars to save on gas.

"So I think you know it's a good way to encourage people to go to alternative fuels and alternative fuels source cars like Teslas," Cromwell said.

This year all of Missouri's infrastructure systems received anywhere between a D- and a C, according to a report from the American Society of Civil Engineers. The report also lists about 12.5% of Missouri's bridges as structurally deficient compared to the 8.9% nationwide.

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