Missouri drivers can expect to pay more for gas starting this Friday. Governor Mike Parson signed the state’s first fuel tax increase in decades into law in July.
The measure will gradually raise the state’s 17-cents-per-gallon gas tax by 12.5 cents over the next five years. The tax will go up 2.5 cents a year starting this Friday.
The gas tax hike is expected to generate $460 million annually for the state’s roads and bridges.
Missouri’s fuel tax was last raised in 1996 when the state’s legislature passed a 6-cents-per-gallon hike. Voters turned down a 10-cent increase in 2018 by nearly 54%.
The state has the second-lowest gas tax in the nation, according to the Tax Foundation.
129th State Representative Jeff Knight representing part of Laclede and Dallas County, explains how Missourians can get a refund of the additional tax.
Missouri Department of Transportation Director Patrick McKenna said the tax revenue has not kept up with inflation, causing Missouri’s infrastructure to lag.
The gas tax hike would cost the average driver about $6 a month or $70 a year. Larger vehicle owners would pay around $100 more a year.
Besides the gas tax, the law increased the state’s electric vehicle decal fee by 20% annually for five years and established an Electric Vehicle Task Force under the Department of Revenue.