Proposed gas tax increase in Missouri could raise price in 2021

A Missouri’s senator has filed a Senate bill to increase the state’s gas tax that would raise the tax by two cents annually for five years. Missouri has one of the lowest gas taxes in the U.S., but those in favor of an increase say the added revenue would go toward infrastructure improvement.

Missouri has one of the lowest gas taxes in the country, but one lawmaker is looking to change that in order to improve infrastructure across the state. 

At present, Missouri’s motor fuel tax is 17 cents. Illinois has a 38-cent tax, and the gas tax in Kansas is 24 cents. Senate President Pro Tem Dave Schatz (R-Franklin County) filed Senate Bill 262 to increase the state’s gas tax by 2 cents a year for five years. 

The last time Missouri increased its motor fuel tax was in 1996. According to Tax Foundation, Missouri has the second-lowest fuel tax in the nation behind Alaska. 

Schatz is proposing legislation for the 2021 session to increase the state’s gas tax by 2 cents a year for five years, raising the motor fuel tax to 27 cents by 2026. 

Similar increases were ballot questions in 2014 and 2018 but neither passed. 

The motor fuel tax would go toward maintaining roads and bridges throughout the state. 

Schatz said if lawmakers pass S.B. 262 and increase the tax by 2 cents a year, it would bring an additional $80 million the first year. 

Compared to other states, Schatz said Missouri would not tax diesel and gas differently. For now, his bill would raise both by 2 cents a year for five years.  

The upcoming Missouri legislative session starts on Jan. 6.