Missouri Gov. Jay Nixon voiced his opposition this week to a proposed transportation sales tax headed to voters in August.
The 10-year sales and use tax proposed in House Joint Resolution 68 and similar action in the Senate would introduce a 3/4-cent sales tax to directly fund the Missouri Department of Transportation's faltering budget, according to
Springfield Business Journal archives.
Secretary of State Jason Kander's office certified the proposal's ballot language on Monday and set the issue to appear before voters during the Aug. 5 primary election. The ballot issue reads:
"Should the Missouri Constitution be changed to enact a temporary sales tax of three-quarters of one percent to be used solely to fund state and local highways, roads, bridges and transportation projects for ten years, with priority given to repairing unsafe roads and bridges?
"This change is expected to produce $480 million annually to the state’s Transportation Safety and Job Creation Fund and $54 million for local governments. Increases in the gas tax will be prohibited. This revenue shall only be used for transportation purposes and cannot be diverted for other uses."
Nixon, who staunchly disapproved of a series of sales tax cuts under
Senate Bill 509 - his veto of which was overridden by the General Assembly - said he could not endorse the transportation sales tax because it would largely be felt by Missourians with a smaller stake, rather than heavy road users.
"The burden of this $6.1 billion sales tax increase would fall disproportionately on Missouri’s working families and seniors by increasing the cost of everyday necessities like diapers and over-the-counter medication, while giving the heaviest users of our roads a free pass," Nixon said in the June 2 statement.
Pointing to SB 509 and tax breaks passed on the last day of the session, Nixon said the General Assembly has provided breaks for the wealthy and is attempting to push a tax on all Missourians with the transportation issue.
"If this effort is successful, Missouri will have the dubious distinction of being a state that, in a matter of months, cut taxes on lawyers and lobbyists, but hiked taxes on bar soap and baseball gloves," Nixon said.
When the issue was approved for a vote by lawmakers last month, the Missouri Chamber of Commerce and Industry hailed the potential tax, noting it would shore up funding for transportation, which it called a vital asset of Missouri.
"Our central location and access to roads, rail, rivers and air is a key selling point in our work to attract jobs and investment in our state,” chamber President and CEO Daniel Mehan said in a news release at the time. “The Missouri chamber and transportation stakeholders statewide will now work to help Missouri voters understand the stark future ahead and how this funding measure can help.”
The chamber also supported SB 509, which will reduce the top tax rate to 5.5 percent from 6 percent over at least a five-year period beginning in 2017 and allows for a 25 percent tax deduction on all business income reported on individual tax returns.
Between 2005 and 2010, the transportation department's construction budget averaged $1.3 billion, but it has fallen to $685 million this year, according to SBJ archives.
