Missouri Bill Proposes Penny Hike in Sales Tax to Fund Infrastructure

A bill recently introduced in the Missouri Legislature would put a referendum on the November ballot to raise the state’s 4.225-cent-per-dollar sales tax by a penny to pay for transportation projects.

It is the second time in as many years that lawmakers have been asked to pass such a bill. Last year’s bill was not put up for a final vote before the Legislature adjourned.

The Missouri Trucking Association is supporting the bill introduced in both chambers, President Tom Crawford said.

“Without an additional investment, we’re not going to be moving forward any longer” Crawford said. “We’ll start to see a degradation of the state’s assets. If it goes too long, [the state’s] not going to be able to match fed funds or even draw down federal dollars.”

Crawford said polls show that voters strongly oppose higher fuel taxes and that a sales tax increase would be more acceptable.

Opponents of the bill said a sales tax increase would disproportionately affect lower-income people. The sales tax increase would not be applied to food or medicine.