SCS SB 915, 710 & 907 -- Transportation Funding

Sponsor:  Westfall

This substitute raises various fees to fund transportation
projects.

MOTOR FUEL TAX

The gas tax sunset clause is repealed and increases the tax by 6
cents.

SALES TAX

General sales tax  are increased by 3/8 percent.  Twenty percent
of the revenue derived from the 3/8 sales tax will be credited to
the State Transportation Fund for multimodal purposes.  Four
percent of the increased sales tax will be deposited in the
Missouri Qualified Fuel Ethanol Producer Incentive Fund and the
Missouri Qualified Biodiesel Producer Incentive Fund.  Beginning
July 1, 2005, 15% of the sales tax will be deposited in the State
Road Fund.  This amount increases every fiscal year by 15% until
the State Road Fund receives 76% of the increased sales tax.

AVIATION FUEL TAX

The substitute removes the cap on the amount of aviation jet tax
revenues which may be deposited in the Aviation Trust Fund.
Current law only permits $5 million of the aviation jet fuel tax
revenues to be placed in the fund.  The substitute changes the
expiration date on the aviation jet fuel tax section to December
31, 2008.  The substitute also modifies the language regarding
the deposit of unclaimed aviation fuel refunds.  Currently, a
person who fails to apply for a refund is regarded as making a
gift of his or her refund to the Aviation Trust Fund.

AGENCY DIVERSION

Revenues that currently go to other agencies from the State
Highways and Transportation Department Fund are eliminated.  The
Highway Patrol and the Division of Motor Carrier and Railroad
Safety will continue to receive funding from this fund.  This
section will take effect the first fiscal year following voter
approval of the substitute.

MOTOR VEHICLE SALES TAX

Under current law, half of the sales tax on motor vehicles goes
to fund transportation projects and the other half is deposited
in the General Revenue Fund.  The substitute diverts the portion
going to General Revenue Fund to the State Road Fund.

REFERENDUM

The substitute must be submitted to a vote of the people on the
first Tuesday of August 2002.  If approved, the substitute will
become effective on January 1, 2003.  Additional revenues are not
subject to Hancock restrictions.  The substitute also requires
another election in 2012 to determine whether voters want the new
taxes to continue.  If not, the rates will return to the level
existing on January 1, 2002.

Missouri House of Representatives
Last Updated October 11, 2002 at 9:04 am