At least one local state representative said he wants some direction before he votes on a proposal that would phase in an increase in the state’s gasoline tax and offer residents the chance to request a rebate for the additional taxes paid.
Rep. Mike McGirl (R-Potosi), whose 118th District includes parts of central and southwestern Jefferson County and northeastern and central Washington County, said he’d like his constituents to let him know how they feel about the proposed tax increase.
“This is important,” he said. “Not that a lot of things we do in Jefferson City aren’t important, but this is going to hit people in their pocketbooks, and I want to know what they’re thinking.”
State Rep. Becky Ruth (R-Festus) sponsored a bill to increase the gasoline tax in Missouri by 2 cents per gallon each year for five years beginning in 2022 for an eventual 10-cent increase.
A separate but similar bill in the Missouri Senate would phase in tax hikes for 2.5 cents per year to a total increase of 12.5 cents. It, too, would offer the chance for a rebate.
Missouri’s gasoline tax of 17 cents per gallon is the second-lowest in the country (behind Alaska) and hasn’t been raised since 1996.
The Senate bill is sponsored by Dave Schatz (R-Sullivan), the Senate president pro tem, and it has been approved by that chamber.
In the House, Ruth’s bill has not yet been assigned to a committee, but she said that’s mainly a matter of legislative courtesy to allow Schatz’s version to go forward.
Ruth said a hearing on Schatz’s Senate bill was held before the House Transportation Committee, which she chairs, on April 21. It was passed 13-0 without comment or debate, and it now will advance to the House’s Rules Committee.
“It was a very good hearing,” Ruth said. “No one testified in opposition to it, and we heard from 83 different people, groups or organizations, either in person, online or by email.”
Both gas tax proposals would allow state residents to file a request for a rebate with the Missouri Department of Revenue to recover the additional gas taxes paid each year.
Ruth said because many residents would not file for the rebate, the new tax could generate as much as $600 million a year – money that would be used to repair the state’s road and bridge system.
“Sen. Schatz put it in a good light (at the hearing before her committee),” she said. “He pointed out that this isn’t the same as Proposition D (a gasoline tax increase that was defeated in the November 2018 election). At that time, he said, 1.1 million Missourians voted for Proposition D, and they can choose not to file for a rebate so they can help improve our roads. And, he said, of the 1.2 million who voted against it, they can choose to get their money back. It’s a good deal for both sides.”
Ruth said Schatz’s version of the bill requires the state Department of Revenue to issue rebate checks within 45 days of receiving the application. Those receiving late rebates would receive interest, she said.
“And you’ll be able to file for the rebates either online, or with a simple, one-page paper application,” she said. “You won’t have to turn in your receipts from the pump, but you should keep them in case you’re audited.”
McGirl said since he issued his request for feedback, he’s gotten some, although he couldn’t say exactly how many telephone calls and emails his office has fielded.
Acknowledging that Republicans typically oppose tax increases, he said he wanted to hear from his district before he votes on the issue, most likely before the General Assembly ends its legislative year on May 14.
“What I can tell you is that roughly 65 to 70 percent of the people who have responded so far have been supportive of it,” he said. “Most of my emails say they are not enthusiastic about paying higher taxes, especially with the cost of fuel seemingly going up steadily, but they understand the roads and bridges infrastructure in this state needs repair.
“And the great majority of those – maybe 80 to 85 percent – have said they absolutely do not want it used for anything other than roads and bridges,” he said. “They don’t want us to play that shell game.”
Ruth said while “a few people” in her district said they opposed the idea, “most people seem OK with it. I think they relate with the need, and they like that it’s a straight rebate rather than just a tax credit.”
McGirl said he would continue to collect feedback about the proposal up until the eventual vote. Residents of his district may call his office at 573-751-2398 or send an email to mike.mcgirl@house.mo.gov.