Legislators applaud, question bill to repeal Missouri gas tax increase

(The Center Square) – Representatives from both parties applauded and questioned the repeal of Missouri’s new gas tax during Tuesday’s hearing of the Special Committee on Government oversight.

HB 1594, sponsored by Rep. Sara Walsh, R-Ashland, would repeal SB 262, signed into law by Republican Gov. Mike Parson last year. The law enacted a refundable 2.5 cents per gallon gasoline tax beginning in October and increasing 2.5 cents annually until reaching an additional 12.5 cents per gallon on July 1, 2025.

Walsh, a candidate for the seat of Republican U.S. Congresswoman Vicky Hartzler, who’s running for the seat of retiring Republican U.S. Senator Roy Blunt, gave multiple reasons for repealing the tax during a four-hour hearing.

“Missouri is in an entirely different situation with historic revenues and we didn’t have that information in the chamber when this tax was passed,” Walsh said. “Simply put, Missouri is sitting on record revenues to the tune of billions of dollars – that’s billion with a B.”

Rep. Keri Ingle, D-Lee’s Summit, said the promise of billions in federal dollars can’t be relied on for transportation as the legislature will be considering multiple ways to spend the funds.

“While we have this money in our coffers right now… everyone is coming to us with different projects and different priorities,” Ingle said. “So my worry is we repeal this gas tax when we have one-time spending, the Senate is in disarray, and if they refuse to appropriate some of these these federal monies, we’re up a creek without a paddle. That tends to be how the legislature has been run in the last couple years, so I’m a little bit hesitant to roll back something that is ongoing investment in our economy, which is surging right now.”

Walsh testified inflation, gas prices and other economic conditions are challenging low-income Missourians and a Democrat applauded the idea.

“This is a unique opportunity for us to give money back into the pockets of Missourians who absolutely need a break right now,” said Rep. Raychel Proudie, D-Ferguson and ranking minority member on the committee. “When people went back to work in October and November, they went to the gas pump and were thoroughly surprised.”

Proudie agreed with Walsh’s testimony stating the process for Missourians to receive a refund on the new tax is cumbersome and was poorly publicized.

Rep. J. Eggleston, R-Maysville and committee vice chair, said the law might not pass constitutional restrictions on the generation of tax revenue.

“There’s a constitutional issue I think we have to follow and a moral issue as well,” Eggleston said. “For me, do my citizens what this or not? I always try to see things from the average Joe’s point of view. A lot of times we have to guess and make our best guess as to how folks at home would feel.”

Fellow Republican Rep. Bill Falkner, who was mayor of St. Joseph for eight years, said he voted for the tax and believed it was critical for economic growth and job creation.

“During my time as mayor, a group of mayors from all of over the state were pushing for a gas tax because we were asked by our citizens to bring in jobs,” Falkner said. “When you bring in site selectors and they come in on highways that aren’t in good condition, you’re marked off the list.”

Rep. Jered Taylor, R-Republic and chairman of the committee, repeatedly stated some Missourians have the perception the gas tax is being used by the Missouri Department of Transportation (MODOT) to give salary increases to employees. He also mentioned MODOT’s lawsuit against the state’s Office of Administration for preventing $60 million from being allocated from the State Road Fund for employee salary increases.

“When constituents look at what we did as we advocated for this as a legislature, when the bill sponsor said this is for road and bridge repair, for boots on the ground, for shovel-ready projects, it’s a bait and switch,” Taylor said.

Patrick McKenna, MODOT director, testified the funds for salary increases from the State Road Fund aren’t directly connected to the gas tax.

“I think the documentation and testimony I’ve presented over the years has been very consistent about not only taking care of the roads and bridges, but taking care of the people that take care of the roads and bridges,” McKenna said. “Those go hand in hand. They’re intimately connected.”

In order for the bill to advance, it must be voted out of the Special Committee on Government Oversight. In an email to The Center Square, Walsh didn’t have a date for the vote. If it’s voted out, it will be forwarded to the Rules-Administrative Oversight Committee for another vote before it can go to the House floor for debate and a vote. It would then be forwarded to the Senate.

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