one cent sales tax

Walmart / Flickr

Summer is coming, and Missourians are hitting the open road, which, after a brutal winter, has taken quite a beating. The Missouri Department of Transportation is looking into making Missouri roads safer, not just by filling in potholes but also widening shoulders on rural roads and expanding Interstate 70 from two lanes to three. That sounds expensive, but the Missouri state legislature has a plan for drumming up close to $800 million a year over the next ten years for Department of Transportation projects – a one percent increase in sales and use tax.

Missouri Association for Social Welfare opposes sales tax

Oct 29, 2013

A potential statewide sales tax to improve road conditions gained new life recently, but not everyone thinks the initiative is a good idea.

The Missouri Association for Social Welfare (MASW) is opposed to an initiative petition filed by Missourians for Safer Roads and New Jobs that would establish a one-cent sales and use tax. The proposed tax could raise $8 billion to fund road improvements throughout Missouri. MASW believes the tax is regressive and would affect lower-wage citizens more than their higher-wage counterparts.

Ryan Famuliner / KBIA

A proposed 1-cent sales tax for transportation has stalled in the Missouri Legislature.

The sales tax proposal was projected to generate nearly $8 billion over a decade for state highways, local roads and other modes of transportation such as railroads, airports, mass transit and river ports. Cities and counties would each get 5 percent of the revenues, with the rest going to state projects. Voters would have had to approve the tax in 2014 to enact the proposal.

Legislation has been filed in the Missouri Senate that would create a temporary sales tax dedicated to funding transportation needs statewide.

The proposed constitutional amendment would create a one-cent sales tax that would expire after 10 years.  It’s co-sponsored by State Senator Mike Kehoe (R, Jefferson City).  He says the one-penny tax would not be levied on groceries, prescription medicine or fuel.