AASHTO Journal, 2 May 2014
The Missouri Senate this week passed a measure to increase the state’s sales tax by three-fourths of a cent to raise revenue for transportation projects in the state. The passage (by a vote of 22-10) comes weeks after the House approved a one-cent sales tax for the same purpose (by a vote of 96-53), necessitating a conference between the two chambers. If the House and Senate can come to an agreement on the amount of the tax, the measure would be up for state voter approval in November.
The legislation (for both chambers) stipulates that the new revenue would fund road and bridge construction, and could not be used for anything other than transportation. Ten percent of the funding raised would be set aside for local transportation projects (5 percent each for counties and municipalities), while the remaining 90 percent will go to the “Transportation Safety and Job Creation Fund,” used at the discretion of the highways and transportation commission. The measure dictates that Missouri Department of Transportation would have to create a list of approved possible projects that could be funded through the new revenue.
The Senate measure estimates the measure, if passed, would produce $480 million more each year for the Transportation Safety and Job Creation Fund and $54 million for local governments. The House’s measure would likely produce $651 million each year for the state-wide fund and $72 million for local governments.
According to an Associated Press article that appeared in the Columbia Daily Tribune on Wednesday, “[Missouri Department of] Transportation Director Dave Nichols said after yesterday’s vote that he was ‘excited’ lawmakers were continuing to discuss the proposal. When asked about the reduced amount [by the Senate], he said it’s up to lawmakers to decide how much money the department can put to use.”
The House’s version of the sales tax bill for transportation is available here. The measure passed by the Senate can be found here.