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Transportation Investment Bill Voted Out of Committee

On Tuesday, the Senate Transportation, Infrastructure, & Public Safety Committee voted SCS SB 262 out of committee "Do Pass" by a 5-1 vote.

SCS SB 262, sponsored by Senate President Pro Tem Dave Schatz includes a 15-cent state motor fuel tax increase, phased in over a period of six years.

The Senate Committee Substitute (SCS SB 262) changed the language of the original bill to incorporate what has become known as the "South Carolina Model" of transportation investment. SCS SB 262 includes language that:
  • Phases in a 15-cent state motor fuel tax increase over 6 years.
  • Authorizes refunds of the additional tax paid and outlines the process by which people can claim rebates.
  • Specifies the window in which claimants must submit refund claims (January 1 to April 15 of the year following the date of purchase.)
  • Allows the Department of Revenue to investigate claims.
  • Requires the Department of Revenue to pay interest if claims aren’t processed in a timely manner.
  • Places a sunset on the refund mechanism (Expires in 2028.)
The bill was reported from committee and has been assigned to the Senate Formal Calendar - Bills for Perfection. The next step in the process is for the bill to be debated on the floor of the senate.
 
NOW IS THE TIME FOR ACTION

MFTI is supportive of Senator Schatz's efforts to increase transportation investment. SCS SB 262 provides an opportunity to increase revenue for roads and bridges and provides an opportunity for Missourians who don't want to invest in the transportation system to claim a refund. More than 1 million voters supported a state motor fuel tax increase in 2018. This bill would allow those voters to support the state transportation system. This bill would also reduce the annual $825 million transportation funding shortfall in Missouri.
 
We encourage our members to contact their local state senators to express the need to pass a strong transportation bill that provides immediate investment in our state's transportation system. Because SCS SB  262 does not include a referendum, it will capitalize on federal transportation funding without delay. Urge their support of quick action on SCS SB 262. If you know your state senator and would like to access the phone directory click here. If you would like to look up your state senator, click here.

MFTI Holds First Virtual Legislative Day in the Capitol

On Wednesday, February 10, Missourians for Transportation Investment held its first Legislative Day in the Capitol of the 2021 legislative session. Wednesday's event was the first-ever virtual legislative day and was conducted via Zoom. The 90-minute meeting included a legislative update for participants and guest visits with House Transportation Committee Chair Becky Ruth and Lt. Governor Mike Kehoe.

Representative Ruth discussed her legislation (HB 1044) to address transportation investment. HB 1044 includes language similar to the South Carolina Model for transportation investment. Following a summary of her bill, Representative Ruth stayed online for a Q&A session with participants.

Lt. Governor Mike Kehoe discussed Representative Ruth's and Senator Dave Schatz's efforts to address transportation investment in Missouri. The Lt. Governor has been a strong supporter of transportation in Missouri and, along with Governor Parson, have been proponents of increased state transportation investment. After discussing the efforts in both the House and Senate, Lt. Governor Kehoe also stayed online for a Q&A session with participants.

Future MFTI Legislative Days in the Capitol

MFTI will continue its series of Legislative Days in the Capitol during the 2021 Legislative Session. These sessions are designed to provide opportunities for members to engage their local representatives and senators in a discussion on transportation investment. Participants are also given opportunities to attend transportation committee hearings and meet with legislative leaders. These Legislative Days are planned to be in-person, pending COVID restrictions. Alternative plans will be made if in-person visits are not an option.

Future Legislative Days in the Capitol are scheduled for the following dates:
  • Tuesday, March 2, 8 am to 2 pm (Senate Transportation Committee meets at 8 am)
  • Wednesday, March 24, 11 am to 5 pm (House Transportation Committee meets at 6 pm)
  • Wednesday, April 14, 11 am to 5 pm (House Transportation Committee meets at 6 pm)
  • Tuesday, May 4, 8 am to 2 pm (Senate Transportation Committee meets at 8 am)
Each Legislative Day in the Capitol will include an orientation and a legislative briefing. Participants will be provided materials to share with their legislators.

Meetings will be scheduled with legislative leaders and participants are encouraged to visit their local state senators and representatives to discuss the need for transportation investment.

To register for the March 2 Legislative Day in the Capitol send the names and email addresses of those from your organization who plan to attend by clicking here.

Needs Lists Added to fundMOtransportation.com

MFTI maintains the fundMOtransportation.com website to provide a platform for transportation supporters to share their support for transportation investment. The site includes a page dedicated to supporters of an increase to the state motor fuel tax. More than 40 organizations/elected officials have already joined the list! Visit the site today to add your organization to the list of transportation supporters!

Additional pages have recently been added to the website to demonstrate the need for additional transportation investment in Missouri. Visit the site here and click on "Unfunded Needs" in the menu to view unfunded by needs by region and county. Use this resource as you communicate with elected officials to demonstrate the "backyard" impacts of inadequate transportation investment in Missouri.

Additional pages will be added to the site in the near future to express support for additional investment in other modes of transportation as well as for support of the conversion of motor vehicle registration fees from a horsepower standard to a miles-per-gallon standard.

Visit www.fundMOtransportation.com to add your organization to the list of supporters for increasing the state motor fuel tax.

Legislative Update

South Carolina Model of Transportation Investment

HB 1044 – Representative Ruth
Last Action: 2/04/2021 - Read Second Time
This bill increases the state motor fuel tax by 10 cents per gallon over five years. It requires the Missouri Department of Transportation to display the amount of revenue generated by the increase and the amount refunded on the department’s website. It allows taxpayers to receive a refund for the tax increase paid and outlines the requirements to claim a refund.

SB 262 – Senator Schatz
Last Action: 2/15/2021 - Formal Calendar S Bills for Perfection
This act enacts an additional tax on motor fuel, beginning with 2.5 cents in 2022, and increasing by 2.5 cents per year until reaching an additional 15 cents per gallon in 2027.

Motor fuel used for propelling highway vehicles shall be exempt from the additional tax, and an exemption and refund may be claimed by the taxpayer if the tax has been paid and no refund has been previously issued, provided that the taxpayer applies for the exemption and refund as provided in the act.

To claim an exemption and refund, a person shall present written verification that the claim is made under penalty of perjury, and stating the amount of fuel tax paid in the applicable calendar year for each vehicle for which the exemption and refund is claimed. The claim shall not be transferred or assigned, and shall be filed on or after January 1, but not later than April 15, following the year for which the exemption and refund is claimed. The claim shall be supported by certain documentation as provided in the act.

The Director of the Department of Revenue may investigate exemptions and refunds prior to their issuance, or following issuance but within the time frame for making tax adjustments as provided by law.

Every person shall maintain and keep records for 3 years to substantiate all claims for exemption and refund of the motor fuel tax as specified in the act. The act provides for payment of interest by the Director for exemptions and refunds not issued within 30 days of an accurate and complete filing.

The exemption and refund provided for in this act shall be available only with regard to motor fuel purchased prior to 2028.

 

Other Motor Fuel Tax Legislation

HB 114 - Representative Butz
Last Action: 1/7/21 Read Second Time
The bill will increase the tax on motor fuel by 10 cents from its current level of 17 cents per gallon to 27 cents per gallon using incremental increases of 2 cents per gallon beginning January 1, 2022 and ending on January 1, 2026. It would also require alternative fuels to be taxed at a substantially similar rate approved by the Department of Agriculture beginning January 1, 2028.

HB 694 - Representative Francis
Last Action: 1/7/21 Read Second Time
This bill raises the state motor fuel tax by 10 cents over a five-year period. It also includes language that would set the blended motor fuel tax on fuel that contains between 6-10% biodiesel at 3 cents below the state motor fuel taxes rate and if the blended fuel contains more than 10% biodiesel, it would be 6 cents below the state motor fuel tax rate.

SB 344 - Senator Brown
Last Action: 2/4/2021 - Second Read and Referred Senate Transportation, Infrastructure and Public Safety Committee
This act specifies that biodiesel blended with motor fuel shall be taxed at a rate of 3 or 6 cents per gallon less than regular motor fuel, depending on the mixture's percent biodiesel content, if the tax on motor fuel becomes greater than 17 cents per gallon.

SJR 21 – Senator Schatz
Last Action: 2/8/21 - Second Read and Referred Senate Transportation, Infrastructure and Public Safety Committee
Currently there is a statutory tax of 17 cents per gallon on motor fuel. This proposed constitutional amendment, if approved by voters, establishes a minimum motor fuel tax of 19 cents per gallon in 2022, and increases this minimum tax by 2 cents per year over a period of 4 additional years. When the amendment is fully implemented, the minimum motor fuel tax will be 27 cents per gallon. This act would require a statewide vote in November 2022.

 

Internet Sales/Use Taxes

HB 588 -- Representative Butz
Last Action: 1/7/21 Read Second Time
This bill creates the "Streamlined Sales and Use Tax Agreement Act" and requires the Director of the Department of Revenue to enter into the "Streamlined Sales and Use Tax Agreement" with one or more states to simplify and modernize sales and use tax administration in order to substantially reduce the burden of tax compliance for all sellers and types of commerce.

Additionally, this bill creates the "Streamlined Sales and Use Tax Agreement Special Fund" which will consist of the revenue generated by this bill and will be transferred to pay for outstanding transportation bond debt. These provisions will sunset five years after the effective date of the bill.

HB 593 – Representative Fitzwater
Last Action: 1/7/21 Read Second Time
Among other things, this bill creates the "Cash Operating Expense Fund", which will consist of use tax revenues collected under the provisions of this bill, any funds appropriated to the Office of the Governor for expenses incident to emergency duties performed by the National Guard that are unexpended at the end of a fiscal year, and funds appropriated by the General Assembly.

Subject to appropriation, the Governor may transfer funds from the fund into the General Revenue Fund in any fiscal year in which actual revenues are less than the revenue estimates upon which appropriations were based or in which there is a budget need due to a natural disaster, as proclaimed by the Governor to be an emergency.

If the balance in the fund at the close of any fiscal year exceeds 2.5% of the net General Revenue collections for the previous year, such excess will be divided evenly between the State Road Fund and Debt Retirement Fund related to bonds issued by or on behalf of the state, as described in the bill. The "Debt Retirement Fund" is established in the bill for the purpose of retiring state debt.

SB 287 -- Senator Crawford
Last Action: 2/10/2021 - Hearing Conducted Senate Local Government and Elections Committee
Among other things, this act establishes the "Cash Operating Expense Fund", which shall consist of the state portion of use tax revenues collected under the provisions of this act; any funds appropriated to the Office of the Governor for expenses related to emergency duties performed by the National Guard, matching funds for federal grants and emergency assistance, and expenses of any state agency responding during a declared emergency, as described in the act, that are unexpended at the end of a fiscal year; and moneys appropriated by the General Assembly.

Subject to appropriation, the Governor may transfer moneys from the fund into the General Revenue Fund in any fiscal year in which actual revenues are less than the revenue estimates upon which appropriations were based or in which there is a budget need due to a natural disaster, as proclaimed by the Governor to be an emergency.

When the balance in the fund at the close of any fiscal year exceeds 2.5% of net General Revenue collections for the previous year, such excess shall be divided evenly between the State Road Fund and the Debt Retirement Fund, which is created by the act for the retirement of debt related to bonds issued by or on behalf of the state, as described in the act.

 

Other Transportation Funding Bills

HB 1006 - Representative Morse
Last Action: 2/02/2021 - Read Second Time
This bill establishes a one-time road use fee to be paid upon purchase of electric vehicles and plug-in electric hybrid vehicles. The fee for new electric vehicles would be 4% of the electric vehicle’s list price. The fee for used electric vehicles would be 4% of the Kelly Blue Book value. The fee for new plug-in electric hybrid vehicles would be 2% of the vehicle’s list price. The fee for used plug-in electric hybrid vehicles would be 2% of the Kelly Blue Book value. Revenue from these fees would be deposited into the state road fund.

HB 1041 - Representative Tate
Last Action: 2/04/2021 - Read Second Time
This bill converts motor vehicle registration fees from a horsepower standard to a miles-per-gallon standard.

HB 346 – Representative Kelley
Last Action: 1/7/21 Read Second Time
The bill would exempt fuel purchased by school districts, to operate school buses, from state motor fuel tax.

HJR 18 -- Representative Merideth
Last Action: 1/7/21 Read Second Time
Upon voter approval, this proposed Constitutional amendment would allow local motor fuel taxes to be used for public transit and school transportation in addition to other activities currently allowed under the Constitution. This proposed Constitutional amendment would also change the threshold of voters required to approve a local motor fuel tax from a two-thirds majority to a simple majority.

SB 252 – Senator Onder
Last Action: 1/28/21 Second Read and Referred to Senate Transportation, Infrastructure, & Public Safety Committee
Current law provides that, of the 4% statutory sales and use tax rate, 1% is provided for education and 3% is deposited in the General Revenue Fund. This act requires that 0.5% of the 3% deposited in the General Revenue Fund shall instead be deposited into the State Road Fund. The remaining 2.5% shall continue to be deposited into the General Revenue Fund. The act phases in the amount deposited into the State Road Fund over a period of five years, with an increase of 0.1% each year.

SB 309 -- Senator Hegeman
Last Action: 2/4/2021 - Second Read and Referred Senate Appropriations Committee
This act establishes the "Cash Operating Expense Fund", which shall consist of any funds appropriated to the Office of the Governor for expenses incident to emergency duties performed by the National Guard, matching funds for federal grants and emergency assistance, and expenses of any state agency responding during a declared emergency, as described in the act, that are unexpended at the end of a fiscal year, and moneys appropriated by the General Assembly.

The Governor may transfer moneys from the fund into the General Revenue Fund in any fiscal year in which actual revenues are less than the revenue estimates upon which appropriations were based or in which there is a budget need due to a natural disaster, as proclaimed by the Governor to be an emergency.

If the balance in the fund at the close of any fiscal year exceeds 2.5% of net General Revenue collections for the previous year, such excess shall be divided evenly between the State Road Fund and debt retirement related to bonds issued by or on behalf of the state, as described in the act.

Actions in bold indicate movement since the last legislative update.

MFTI Legislative Priorities

On December 17, 2020, Missourians for Transportation Investment hosted a Policy Council Retreat to determine legislative priorities for the 2021 Legislative Session of the Missouri General Assembly.
 

State Motor Fuel Tax

That state motor fuel tax hasn't been increased in 25 years. Because the state motor fuel tax is a flat fee, it doesn't keep up with inflation. As a result, the state motor fuel tax has lost half of its purchasing power.

MFTI supports legislative action to increase the state motor fuel tax as much as possible under the limits of the Hancock Amendment, and indexing the state motor fuel tax, with the increased revenue dedicated to transportation investment. That legislative action may include a mechanism to allow taxpayers to file a claim for a refund equal to the additional state motor fuel tax paid (over and above existing state motor fuel tax) provided claimants submit proof of purchase.
 

Motor Vehicle Registration Fees

Fuel efficiency improvements in automobiles and an increase in electric/hybrid motor vehicles have reduced the amount of fuel purchased and, subsequently, the amount of revenue available for construction and maintenance of the state's transportation system.

MFTI supports legislative action to change motor vehicle registration fees from a horsepower standard to a miles-per- gallon standard, increasing electric/hybrid motor vehicle registration fees, and indexing all motor vehicle registration fees, with the increased revenue dedicated to transportation investment.
 

Funding Other Modes of Transportation

In addition to Missouri's roads and bridges, other modes of transportation are important to the continued growth and development of our economy and to the health and wellbeing of Missouri citizens. Missouri needs to provide adequate and sustainable investment for public transportation, ports, airports, rail, bicycle and pedestrian routes.

MFTI supports legislative action to increase investment in all modes of transportation.

Weekly Advocacy Calls

MFTI hosts weekly advocacy calls. These calls provide an opportunity for transportation investment supporters who are regularly in the capitol to collaborate. These calls take place on Monday afternoons at 3:30 p.m. during the legislative session, except for holidays and during the legislative spring break.

If you are regularly in the capitol and would like to participate in these calls, forward your contact information to info@mfti.org.

Participants receive a calendar invite with the phone number and access code for the calls.

If you have any questions, send them to info@mfti.org.
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