Senator suggests automatic fuel tax boosts in Missouri

Sunday, December 5, 2004

By Marc Powers

Nevada Herald

JEFFERSON CITY, Mo. -- A key Missouri lawmaker is floating a proposal that would slightly increase the state fuel tax each year. The lawmaker, however, says his primary purpose is to spur a discussion on how to best generate more money for transportation and that he doesn't expect the bill to become law next year.

Under the legislation pre-filed by state Sen. Jon Dolan, who chairs the Senate Transportation Committee, the state fuel tax would be annually adjusted to account for inflation.

"The simple intent is to get a hearing and to investigate and study the best ways we can manage the transportation system," Dolan said. "This is one idea that is out there. By no means is it probably even going to pass."

The state fuel tax has remained at 17 cents per gallon since 1996 when the final portion of a 6-cent increase lawmakers approved in 1992 was phased in. Missouri voters overwhelmingly rejected an additional 3-cent hike that was part of a larger transportation tax package in 2002.

Dolan, R-Lake St. Louis, said much progress has been made in the last two years with the enactment of a law strengthening legislative oversight of the Missouri Department of Transportation and voter ratification last month of Amendment 3, which will redirect existing state revenue for road construction.

Even with the extra money the amendment will provide MoDOT, Dolan said the need to generate additional revenue for transportation remains an issue.

His bill would require the director of the Department of Revenue to annually recalculate the fuel tax based on the Consumer Price Index.

According to the federal Bureau of Labor Statistics, the CPI for the 12-month period ending in October was 3.2 percent. Using that figure, Missouri's fuel tax would rise to 17.5 cents per gallon next year if Dolan's bill became law.

Dolan said the proposal would generate as much as $8 million in additional revenue.

Other ideas to boost revenue for transportation Dolan's committee will consider include targeted toll road authority for the reconstruction of Interstate 70 and restructuring license and registration fees. Dolan made no promises that any of the proposals will be seriously pursued in the legislative session that begins Jan. 5.

"I am not out to raise taxes at all," Dolan said. "I'm just throwing out ideas."

Missouri Farm Bureau spokesman Estil Fretwell said his group, which has been highly vocal on transportation funding issues, has formulated no position on Dolan's bill but is open to new ideas. Fretwell said any revenue proposal should make fixing deteriorating roads in outstate Missouri a priority.

"We have long recognized that there is not enough revenue coming into the state to meet all of our transportation needs," Fretwell said. "At the same time, we continue to believe there is skepticism, particularly in rural areas, as to how additional funds would be spent."

MoDOT spokesman Jeff Briggs said the agency is interested in pursuing Dolan's idea.

"Indexing the fuel tax to the CPI would help our largest single revenue source keep up with the cost of doing business," Briggs said.

The bill is SB 101.

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