House proposes gas tax exemption

The proposal would create a gas tax holiday that removes 10 cents of the 17-cent-per-gallon excise tax on gasoline and diesel fuel for 14 days and permanently exempts school districts from paying state fuel taxes.

The plan would save taxpayers an estimated $18.4 million, according to a news release from the House Minority Caucus.

Pete Rahn, director of the Missouri Department of Transportation, is fighting the proposal, saying it would result in a loss of $19.1 million in funding for state highways and local roads.

“I sympathize with our state’s motorists, but this proposal would harm our ability to provide road and bridge improvements promised to Missourians,” he said in a news release.

A portion of the lost revenue could be recouped by motorists and from surrounding states and over-the-road truckers who will come to Missouri to take advantage of the tax holiday, according to the House news release.

If Gov. Matt Blunt agrees to move forward with the proposal, he will opt to expand the upcoming special legislative session on Sept. 6 for lawmakers to consider it.