Missouri House votes for sales tax to fund transportation infrastructure

The 10-year penny tax hike would provide $800 million each year for maintenance and construction on roads, bridges and other transportation projects. Supporters said the money was needed to fill a hole in the Missouri Department of Transportation’s budget, which may not be enough to maintain existing infrastructure by 2017, according to the department.

"The reality is over the past year MoDOT has lost over half their funding," bill sponsor Rep. Dave Hinson, R-St. Clair, said. "They're not even going to have enough money to do basic maintenance."

The measure was blocked last year by a Republican filibuster from senators who opposed the tax increase. Supporters began to gather signatures to put the measure on the ballot but suspended those efforts in February because of hopes the Legislature would move on the issue.

MoDOT Director Dave Nichols said earlier this year that declining revenues from the gasoline tax, increased material costs and the growing tab for debt service from bonds, were responsible for the shrinking budget. The Missouri Highways and Transportation Commission voted in January to suspend adding any new projects to the state’s five-year plan and stop all state-local cost-sharing projects.

The constitutional amendment to increase the states sales tax rate from 4.225 percent to 5.225 percent got bogged down last week when Rep. Paul Curtman, R-Pacific, proposed an amendment that would have removed the word “bicycle.” It would’ve prevented any of the transportation money from being used for bike-related projects.

Curtman said already scarce dollars should not be used on bicycle paths or trails.

“If we’re going to the vote of the people for more money the priority is general infrastructure not bicycle paths,” Curtman said on Thursday.

Bicyclist and pedestrian advocacy groups criticized the attempt to remove bicycle funding, as did Rep. Chris Kelly, D-Columbia. Kelly said in order to succeed in November on the ballot, the tax hike needed as much support as possible.

“If you lose the bike people, I think you’re dead in the water,” Kelly said.

The part of the amendment dealing with bicycles was defeated. Ten percent of the proceeds from the tax hike will go toward local transportation projects and that money could be used for alternative transportation methods including bicycle, air, rail and pedestrian projects.

Opponents of the tax hike argue it disproportionately effects low-income people who pay a greater share of their money in sales taxes. Rep. Jon Carpenter, D-Kansas City, said transportation needs have been and should continue to be funded by fees and taxes on users – license fees and gas taxes. His proposal to instead raise the gas tax was rejected.

“The Missouri gas tax has not increased in many years, as a result it has not kept pace with inflation,” Carpenter said. “That’s why we find ourselves looking at an unprecedented one cent sales tax.”

The constitutional amendment also has language prohibiting tolls for existing roads and bridges without voter approval. Carpenter said that would allow tolls on new construction but Hinson did not agree.

The House voted 96-53 to pass the measure, which now moves to the Senate.

(The constitutional amendment is HJR 68.)