Mo. lawmakers target sales tax to fund road repairs

By Taylor Beck and Wes Duplantier

(MDN News) -- Several Missouri lawmakers have said the state needs more money for road projects and are proposing tax increases to fund those projects.

Although Missourians haven't passed a sales tax increase in decades, witnesses packed an early morning hearing of the Senate Transportation Committee Wednesday, Feb. 20, to support one that would increase the state sales tax by one cent for the next 10 years to provide money for Missouri's roads and transportation system.

If passed, the bill would put the tax-increase proposal before Missouri voters on the 2014 ballot. Revenue from the increase would be distributed among cities and counties for the purpose of supporting transportation and infrastructure projects, such as the maintenance of roads and bridges.

Committee chairman and bill sponsor Sen. Mike Kehoe, R-Jefferson City, said the tax increase would create nearly $8 billion in revenue and 250,000 jobs. He also said the jobs created would stimulate spending, and thus, the economy.

"The value for Missourians, the value for your dollar right now is incredible value, the opportunity is now," said Kehoe, a former car dealer.

Michael Rathbone, a political researcher at the Show-Me Institute, said the tax is unfair to those who don't use highways as often. The Show-Me Institute is a conservative think tank that opposes tax increases.

"It's really taking away from the fact that we're having people who don't use these as much," Rathbone said. "People that walk to work or bike to work are helping to subsidize with the sales tax people who use these roads and facilities more frequently."

A similar but slightly different measure has been filed in the House. Rep. Dave Hinson, R-St. Clair, is sponsoring a measure that would increase the state sales tax by one percent for 10 years, with all of the money going to transportation projects. Ten percent of the funds raised from that extra tax would go to cities and counties for road projects and the state would keep the other 90 percent to fix up highways and interstates.

The House Transportation Committee heard testimony on that measure Tuesday, Feb. 19. If it passes the legislature, the measure would go before voters in 2014.

Neither the House nor Senate committees took action on either version of the proposal this week