Mo. Senate approves transportation tax bill

Reduced from a 1-cent sales tax in earlier versions, the resolution would ask voters to approve the tax to support infrastructure maintenance and improvements.

The proposal – House Joint Resolution 68, sponsored by Rep. Dave Hinson, R-St. Clair –  passed in the Senate with a 22-10 vote. The resolution directs tax proceeds into three new funds for disbursement: 90 percent to the Transportation Safety and Job Creation Fund; 5 percent to the County Aid Transportation Fund; and 5 percent to the Municipal Aid Transportation Fund.

The tax is expected to generate $480 million a year for the Transportation Safety and Job Creation Fund, which would be applied at the discretion of the Missouri Highways and Transportation Commission. Another $54 million per year would be generated for the other two funds.

Should voters approve the tax, it would take effect Jan. 1. The county fund supports county road improvements based on road mileage and rural land evaluations. The municipal fund would support infrastructure needs in cities and towns based on population.

The measure has gained the backing of the Missouri Chamber of Commerce and Industry, which issued a news release saying dwindling funds is creating a critical need for the state’s transportation system.

“Because Missouri businesses rely on our state’s transportation system each day, our businesses are key stakeholders in this discussion,” state chamber President and CEO Daniel Mehan said in the release. “With the bill now passed in the Senate, we urge the General Assembly to complete their work on this bill so we can begin the work of educating voters statewide about the need to support this measure.”

Not everyone is on board with the proposal. The Show-Me Institute, a free-market think tank supported by St. Louis businessman and conservative philanthropist Rex Sinquefield, is opposed to the tax.

In a column written by policy analyst Joseph Miller, he argues the people who use the roads most should pay for the upkeep and improvements.

“Paying for highways based on how much people shop, and not how much they drive, creates a free-rider problem. It promotes congestion, road degradation and sprawl. It also is fundamentally unfair to force occasional drivers to pay as much or more for new roads as daily commuters and interstate trucking companies,” Miller said in the column.

He proposed adjusting the 17-cent gas tax upward for inflation – a move that could generate $300 million annually – and tolling major highways and bridges. The current gas tax has been in place since 1996.

HJR 68 was reported to the state House of Representatives yesterday, but as of 9 a.m. it had not moved to the House calendar, according to House.Mo.gov.