Missourians Reject Sales Tax for Infrastructure
August 6th, 2014 | By: Maria Matthews
On August 5 Missouri voters defeated a measure that would have established a dedicated infrastructure fund from revenue earned through three-quarters of a cent sales tax increase. Constitutional Amendment 7 was dismissed in a 59% to 41% vote. “We are very disappointed in the result, but the people have spoken and we respect that.” Stephen Miller, chairman of the Missouri Highways and Transportation Commission, commented. “As we have seen for the past several years, I think Missourians have a clear understanding that more resources need to be invested in our transportation infrastructure, but there just isn’t any consensus on how to pay for it. We need to continue working toward that end.” The Missouri Department of Transportation (MoDOT) Long Range Transportation Plan estimates that over the next 20 years, Missouri has at least $70 billion of infrastructure projects requested throughout the state, but only $17.3 billion of available funds are expected to be available. Had the measure passed it would have made an estimated $5.4 billion available over the next 10 years for state and local transportation projects. In fact, in July MoDOT release a list of “priority projects” that would have received funding with the revenue generated by the tax increase. The future of this list remains to be seen. Dave Nichols, director of the Missouri Department of Transportation, “We will continue our focus on safety, maintaining our roads and bridges, and providing outstanding customer service with the resources we have.” If Missourians wish to “raise the grade” on roads and bridges, adequate revenue must be collected and allocated to maintain and improve the state’s transportation infrastructure.Tags: Funding, infrastructure investment, Missouri, transportation
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Missourians Asked to Vote “Yes” on Sales and Use Tax Increase
July 8th, 2014 | By: Maria Matthews
On August 5, Missourians go to the polls to weigh in on the future of the state’s transportation fund. Rather than enacting a temporary fix through an incremental gas tax hike, the Missouri Legislature put the matter in the hands of constituents in the form of Constitutional Amendment 7 which will appear on the August 5 ballot. If passed, the constitutional amendment will increase the sales and use tax three-quarters of one percent for a period of 10 years. This increase will establish a dedicated funding source not only for the state wide transportation system but, also county and city roads. With the exception of everyday expenses like, food, gas, utilities, or home and car payments, an additional three-quarter of one percent tax will be added to the existing state sales and use tax. In fact, during this 10-year period the state will be prohibited from raising the gas tax! It is estimated the proposed sales tax increase could lead to $5.4 billion over the lifetime of the tax — approximately $600 million of which will be diverted to county and city transportation projects. To put this into perspective, the Missouri DOT Long Range Transportation Plan estimates that over the next 20 years, Missouri has at least $70 billion of infrastructure projects requested throughout the state, but only $17.3 billion of available funds are expected to be available. A “yes” vote will ensure a reliable and sustainable source of revenue for the Missouri’s transportation fund. When August 5th arrives we ask that voters remember this: ✓ Money from the tax will only be spent on the improvement of roads, bridges, and other priority transportation projects in Missouri. ✓ 90% of the revenue will fund priority transportation projects, statewide, through the Missouri Department of Transportation (MoDOT). ✓ 5% will be given to counties and 5% given to cities for local transportation projects. ✓ All projects completed through MoDOT will be voted on by the Missouri Highway and Transportation Commission and completion will be constitutionally guaranteed. ✓ This sales tax will only apply to non-essential items, specifically exempted are: groceries, gas, utilities, mortgage and car payments, healthcare, prescription drugs, education, and retirement savings. ✓ Creating the tax through a constitutional amendment prevents future politicians from diverting funds to non-transportation spending. In anticipation of the additional funding, MoDOT has even updated its project list. Failure to increase the sales tax will mean status quo when it comes to Missouri’s transportation infrastructure. For this reason it is critical Missourians vote “yes” on Constitutional Amendment 7 and help lawmakers direct much needed funds toward maintaining, and improving, statewide transportation systems.Tags: ballot, economy, Missouri, state government, transportation, vote
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State Legislatures Continue to Charge Ahead with Transportation Investment
February 27th, 2014 | By: America's Infrastructure Report Card
Lawmakers at the state level continue to seek transportation funding solutions. Already early in 2014, several state legislatures are considering proposals to increase revenue or dedicate more funds to transportation projects. While a proposal to increase New Mexico’s gas tax by 3-cents per gallon failed to pass before the legislature adjourned this week, several other proposals around the country are still very much alive. In Delaware, Gov. Jack Markell has proposed to raise the state gas tax by 10 cents per gallon, and the proposal also includes a provision that would automatically trigger future additional increases to keep pace with inflation. Idaho truckers are calling for an increase in the state’s gas tax to fund much needed road improvements. They have pitched the bill on grounds Idaho should get started on tackling an estimated annual $262 million backlog of road and bridge projects. The Indiana state department of transportation wants lawmakers to approve an early release of $400 million saved in a special trust fund created last year which they hope to spend on highway projects. Meanwhile, legislation to allow Marion County (Indianapolis) and six surrounding counties to ask voters to approve local tax increases to fund transit continues to move through the legislature. Iowa lawmakers have taken the first step to act on a proposal to incrementally increase the gas tax by a total of 10-cents per gallon over the next three years. The bill recently passed a House subcommittee and is likely to continue to receive serious consideration. In a new poll, more Michigan residents say they would rather see the state spend a nearly $1 billion budget surplus on roads than provide income tax relief as some lawmakers in Lansing want to do, The Detroit Free Press reported. Meanwhile, in remarks to a joint meeting of the House and Senate Appropriations committees this week, Gov. Rick Snyder, while recognizing the need for comprehensive transportation funding, recommended a one-time cash infusion from the general fund of $254 million in 2015 to shore up the state’s infrastructure. In Minnesota, local leaders are urging the legislature to act this year. A group of the state’s mayors and other city officials are call for state legislators to should invest in transportation this year because it is the key to economic competitiveness for all communities. More than 70 Minnesota counties have also adopted resolutions in support of a comprehensive transportation funding package in 2014. Proposals are pending in both the Missouri House and Senate that would implement a temporary 1-cent sales tax increase with the new revenues dedicated to transportation. And, in the past week in Utah, the state Senate Revenue and Taxation Committee voted unanimously to send legislation to the full Senate that would index the state gas tax to the per gallon price of gasoline. These efforts obviously show the emerging importance of infrastructure investment at the state level. As one can see, these efforts include both Blue and Red states, proving that investment is indeed a bipartisan issue. 2014 is a critical year for transportation funding, and we hope these state efforts continue the momentum toward modernizing our nation’s infrastructure.Tags: gas tax, Idaho, Indiana, Iowa, Michigan, Minnesota, Missouri, New Mexico
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