Gov. Parson holds ceremonial signing of fuel tax bill in Cape Girardeau
CAPE GIRARDEAU, Mo. (KFVS) - Governor Mike Parson signed Senate Bill 262 into law on Tuesday morning, July 13.
Senate Bill 262, known as the fuel tax bill, will increase the fuel tax in Missouri for the first time in decades.
The law will increase the state’s fuel tax 2.5 cents in October 2021, which will bring it to 19.5 cents.
The tax will continue to increase by 2.5 cents each fiscal year until July 1, 2025, this will bring the fuel tax up to 29.5 cents.
Under the measure, there is an out for buyers to get a refund if they keep track of their receipts.
Governor Parson held a ceremonial signing of the measure in Cape Girardeau on Tuesday.
The event took place at Melaina’s Magical Playland Parking Lot at North Cape Girardeau County Park, near the Interstate 55 Center Junction Project.
In a released statement, Parson said the new law is vital in funding transportation projects statewide and at the local level.
“With nearly $1 billion in unfunded transportation needs each year, we can no longer wait for another day or another generation,” said Parson. “We must change course and address these problems head-on. SB 262 provides vital revenue that will help us fund essential road and bridge projects all across the state. Quality roads and bridges increase the efficiency and safety of our roadways, invite travelers and business investment, and save Missourians money.”
All gas tax revenue is constitutionally required to be used to maintain roads, bridges and other transportation means.
When the fuel tax reaches its full implementation, it is expected to generate approximately $450 million more per year in transportation funding.
An estimated $330 million per year will go to the State Road Fund run by the Missouri Department of Transportation.
Nearly $125 million, approximately 30 percent of the total tax revenue, will go to cities and counties for local transportation projects.
“If you just take an honest opinion of yourselves, the reason you live where you live is because of infrastructure,” Governor Parson said.
“As the constitution of the state of Missouri says, we fund our highway systems through this process and we all need to remember that’s how we do it and it’s worked that way for many many years and I’ll tell you it’s our time to make sure we continue that tradition.”
Some people in the community have mixed reactions about this gas tax hike.
″I’d be opposed to it because I’m already feeling it at the pump now, there’s been an increase since the political change parties, and I feel that if it’s to improve the roads and infrastructure that’s a good thing, however there’s already a deal in play I believe to improve the roads and the bridges, so I think it would be an extra added cost for no reason,” Greg Norman said.
″As we live day by day, time goes by, everything gradually goes up. Wages, food, gas also so it’s expected that it will go up here and there,” Moleen Gross said.
″I’m kind of against it due to the fact that I drive a V8 it already costs like 60 dollars to fill up my tank now but then again on the other hand, a lot of the roads do need to be fixed and repaired so I’m kind of torn right in the middle about it,” Joseph Archer said.
”We hope that most of the people will understand once we approve how we’re spending the money that we’re really building infrastructure in the state, they’ll be supportive of it,” Governor Parson said.
For more information on the fuel tax law, click here.
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