State Rep. Becky Ruth has a modest proposal she thinks would help fix Missouri’s deteriorating roads and bridges.
Ruth (R-Festus) recently filed legislation in Jefferson City that, if approved by both the House of Representatives and the Senate and signed into law by Gov. Mike Parson, would increase the gasoline tax in Missouri by 2 cents per gallon each year for five years beginning in 2022.
The additional revenue could then be used to repair roads and bridges.
Missouri’s gasoline tax is 17 cents per gallon and is the second-lowest in the country (behind Alaska) and hasn’t been raised since 1996.
Voters have turned down referendums to increase the tax in 2014 and 2018.
“The difference in my plan is a rebate,” Ruth said.
If her bill becomes law, motorists would be able to file for a yearly rebate of their additional fuel taxes.
“This will only be on the additional taxes you pay,” Ruth said. “You would be able to file with the (Missouri) Department of Revenue a request for a rebate. You would have to keep your receipts, and you would have to file at the latest either a year from the time of purchase or April 15 of the next year.”
Ruth, who recently was reappointed the chair of the House Transportation Committee, said she modeled her legislation after a South Carolina law.
“I was at a meeting of committee chairs at the Southern Legislative Conference, and someone from South Carolina talked about what they had done. I spoke with them, and then I did more research and reached out to the South Carolina senator who sponsored the bill. I believe that’s something we can do in Missouri.”
Ruth said the difference between the South Carolina law, passed in 2017, and her proposal is that instead of making the refund a credit on the state income tax, hers is a direct rebate.
She said she doesn’t believe coordinating the rebates would be an onerous – and costly – addition to state government functions.
“We in Missouri already have the mechanisms in place with the agricultural fuel rebate and the nonmotorized fuel rebate,” Ruth said.
Under her bill, the state would have 30 days to issue the rebate, after which it would pay interest to the taxpayer.
She said in South Carolina, about 15 percent of those eligible claim the tax credit. “As of 2020, South Carolina gave back about $3 million, but takes in an additional $500 million. I understand our numbers in Missouri are very close to South Carolina’s, so we could see upwards of $600 million coming in for our roads and bridges.”
“My bill also would put transparency and accountability for this money with MoDOT (the Missouri Department of Transportation),” Ruth said. “They would be required to post on their website, in an easy-to-find, easy-to-read place the money that’s coming in from the gas tax and what it’s being spent for.”
Other proposals have been introduced in this year’s legislative session to place a gas tax increase on the ballot.
One proposed by Sen. Dave Schatz (R-Sullivan), who is president of the Senate, seeks to place a proposal before voters that also would phase in a 10-cent increase.
“My proposal would not require that a tax increase would go before voters,” Ruth said. “Because of the rebate, it would not be subject to the Hancock Amendment.”
“I’m working with Sen. Schatz as we focus on these proposals,” she said.
Ruth said she’s hopeful her fellow legislators will embrace her idea.
“This gives people the option,” she said. “Nobody likes to raise taxes, and nobody likes to pay taxes, but you’ll have the option of asking for your money back or leaving it in there to fix our roads and bridges.”