Fuel Tax Repeal Bill Headed to the House Floor
House Bill 1594 (HB 1594), sponsored by Representative Sara Walsh was voted "Do Pass" by the House Committee on Rules - Administrative Oversight on Thursday, February 24. The bill can now be placed on the House Calendar for floor debate. This bill would repeal the state motor fuel tax increase enacted by the General Assembly last year.
MFTI encourages its members to contact their state senators and state representatives to urge their opposition to state motor fuel tax repeal bills.
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Flurry of Activity on Transportation Bills
With the 2022 legislative session nearing the midway point, legislative activity on transportation bills has increased significantly in the last two weeks. Of the 28 transportation bills we're actively tracking, 13 have seen some sort of activity within the last two weeks.
Two bills aimed at repealing the state motor fuel tax increase enacted last year have seen recent movement. HB 1594 has been voted out of committee and is now eligible for debate on the floor of the house. SB 1149, which would also repeal the increase, was filed by Senator Bill White.
In addition to the repeal bills, constitutional amendments (HJR 134 and HJR 129) that would give the General Assembly more power over state road fund expenditures have been filed. HJR 134 was introduced then second read and referred to committee the next day.
SB 1163 would cap the number of employees MoDOT could employ in order to access general revenue funds appropriated by the General Assembly. Currently, MoDOT receives approximately $60 million annually in general revenue (GR) funds and could receive additional GR funds in the current budget. HB 2802 was introduced on Friday. Like SB 1163, it creates a "Transportation Accountability Fund". Details of the bill were not available as of this publication.
HB 2758 would make it easier to claim refunds by reducing the information required on the claim form. HB 2293 would exempt certain vehicles from sales tax, generating a potential loss to the state road fund in the neighborhood of $30 million annually and another loss to the state road bond fund of an additional $30 million annually. HB 2801 would create a one-time six-month sales tax holiday on motor fuels.
MFTI encourages its members to reach out to their state senators and state representatives to urge their support for transportation funding.
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Register to Attend MFTI Legislative Day March 8
Efforts to repeal the state motor fuel tax increase enacted last year are increasing.
In our efforts to protect new transportation funding made possible through the state motor fuel tax increase passed last year, we need your help!
Opponents of the state motor fuel tax increase are making their voices heard in the capitol. As supporters, we need to do the same.
Join us on March 8 for MFTI Legislative Day in the Capitol to show your support for transportation funding and your opposition to efforts to repeal the state motor fuel tax increase.
Register for the in-person March 8 Legislative Day in the Capitol by sending an email with the names and email addresses of those from your organization who plan to attend to info@mfti.org.
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Legislation Update
State Motor Fuel Tax Repeal Bills
HB 1594 - Representative Walsh
Last Action 2/24/22: Voted "Do Pass" by the House Committee on Rules-Administrative Oversight
Currently, an additional tax on motor fuel began with 2.5 cents in October 2021 and will increase by 2.5 cents in each fiscal year until reaching an additional 12.5 cents per gallon on July 1, 2025.
This bill repeals this and the subsequent motor fuel tax increases in current law along with the tax exemption for the motor fuel and the refund associated with the exemption.
NOTE: This bill can now be brought to the floor of the house for debate.
SB 782 - Senator Moon
Last Action 1/13/22: Referred to Senate Committee on Transportation, Infrastructure, and Public Safety
This act repeals a portion of the tax on motor fuel, and the exemption and refund process applicable to that portion.
SB 811 - Senator Eigel
Last Action 1/20/22: Referred to Senate Committee on Transportation, Infrastructure, and Public Safety
This act repeals a portion of the tax on motor fuel, and the exemption and refund process applicable to that portion.
SB 1149 - Senator White
Last Action 2/15/22: Read First Time
This act repeals a portion of the tax on motor fuel, and the exemption and refund process applicable to that portion.
Transparency & Accountability Bills
HJR 134 - Representative Jered Taylor
Last Action 2/25/22: Referred to the House Special Committee on Government Oversight
Proposes a constitutional amendment to modify provisions relating to the appropriation of certain state funds including the state road fund. This act would place a constitutional amendment on the ballot that would make expenditures from the state road fund authorized by the highways and transportation commission pursuant to an appropriation by the general assembly.
HJR 129 - Representative Seitz
Last Action 2/16/22: Referred to House Special Committee on Government Oversight
Proposes a constitutional amendment to grant the legislature the authority to veto department of transportation spending plans.
SB 1163 - Senator Hegeman
Last Action 2/23/22: Read First Time
This act creates the "Transportation Accountability Fund", to consist of general revenue appropriated by the General Assembly for highway system uses and purposes, other than the payment of outstanding bonds. The fund shall be used solely by the Department of Transportation for highway system uses and purposes.
No disbursements shall be made from the fund at any time the department of transportation employs more than 4,500 employees.
HB 2802 - Representative Cody Smith
Last Action 2/25/22: First Read
Establishes the "Transportation Accountability Fund"
SB 962 - Senator Luetkemeyer
Last Action 2/24/22: Referred to Senate Committee on Transportation, Infrastructure, and Public Safety
This act specifies that the Highways and Transportation Commission shall publish on the Department of Transportation's official website its cost estimate and project completion date for any construction, maintenance, or repair work on the state highway system at the time bidding on a contract for the work first closes. This act is identical to a provision in the truly agreed to and finally passed SS#2/HB 661 (2021).
HB 1906 - Representative Shaul
Last Action 1/6/22: Read Second Time
This bill prohibits a fuel tax from being implemented until the completion of a review by the Oversight Division of the Joint Committee of Legislative Research. The Oversight Division must perform an actuarial analysis of the Department of Transportation and file a report with both the House of Representatives and the Senate. After that, an audit must be conducted biennially.
For each mile of roadway added to the jurisdiction of the State
Highways and Transportation Commission after August 28, 2022, the Commission must remove a mile of roadway from their jurisdiction.
State Motor Fuel Tax Refund Changes
HB 2758 - Representative Evans
Last Action 2/24/22: Read Second Time
Modifies provisions relating to the motor fuel tax refund including the information that must be provided when claiming a refund.
State Motor Fuel Tax Exemptions & Holidays
HB 2293 - Representative Knight
Last Action 2/23/22: Public Hearing Completed in the House Committee on Downsizing State Government
This bill exempts sales of motor vehicles more than 10 years old and sold for the purchase price of less than $25,000 from sales tax.
HB 2801 - Representative Schwadron
Last Action 2/25/22: First Read
Creates a one-time six-month tax holiday on motor fuel sales.
HB 1982 - Representative Kelley
Last Action 1/6/22: Read Second Time
This bill exempts motor fuel sold to be used to operate a school bus that is owned by a school district from the state motor fuel tax.
Federal Funds
SB 932 - Senator Eigel
Last Action 2/16/22: Referred to Senate Committee on Appropriations
This act creates the Infrastructure Investment and Jobs Act Fund. The fund shall consist of all funds received by the state under the federal Infrastructure Investment and Jobs Act which are not required to be allocated to other funds.
The state treasurer is authorized to create or redesignate funds as necessary to avoid conflict with provisions of federal law prohibiting commingling of certain funds derived from any federal act under this section. This act contains an emergency clause.
SB 813 - Senator Eigel
Last Action 1/20/22: Referred to Senate Committee on Transportation, Infrastructure, and Public Safety
The act exempts St. Charles County, Franklin County, and Jefferson County from the motor vehicle emissions inspection program established by the Air Conservation Commission.
If these provisions have the effect of placing the state in noncompliance with any federal constitutional, statutory, or regulatory provision that results in the loss of any federal funds to the state, these provisions shall expire 3 years from the date the state is deemed to be in noncompliance.
These provisions are identical to provisions in the truly agreed to and finally passed SS#2/HB 661 (2021) and provisions in HCS/SCS/SB 40 (2021), and similar to SB 156 (2021). This act could have a negative impact on federal transportation funding.
Biofuels
HB 1695 - Representative Gregory
Last Action 2/10/22: Reported Do Pass by the House Rules - Administrative Oversight Committee
For all tax years beginning on or after January 1, 2023, this bill authorizes a tax credit for retail dealers selling higher ethanol blend at the retail dealer's service station, as such terms are defined in the bill. The credit will be equal to $0.05 per gallon of higher ethanol blend sold and dispensed through metered pumps at the service station during the tax year. The tax credit will be nontransferable and nonrefundable but may be carried forward to any of the five subsequent tax years. The total amount of tax credits authorized under the bill in a given fiscal year will not exceed $5 million. This bill will sunset on December 31, 2028, unless reauthorized by the General Assembly.
HB 1875 - Representative Haffner
Last Action 2/10/22: Reported Do Pass by the House Rules - Administrative Oversight Committee
For all tax years beginning on or after January 1, 2023, the bill authorizes a tax credit for retail dealers selling a biodiesel blend at the retail dealer's service station. The credit will be equal to $0.02 per gallon for between a 5% and 10% blend and $0.05 per gallon of in excess of a 10% blend sold and dispensed through metered pumps at the service station during the tax year. If the tax credit exceeds the taxpayers tax liability, the difference shall be refundable. The total amount of tax credits authorized under the bill in a given fiscal year will not exceed $16 million. The program will sunset on December 31, 2028, unless reauthorized by the General Assembly.
For all tax years beginning on or after January 1, 2023, the bill authorizes a tax credit for Missouri biodiesel producers in the state. The credit will be equal to $0.02 per gallon produced by the Missouri biodiesel producer during the tax year. A biodiesel producer that does not qualify as a Missouri biodiesel producer, as defined by in the bill, may claim a prorated tax credit based on the percentage of the producer's feedstock that originates in Missouri.
If the tax credit exceeds the taxpayers tax liability, the difference shall be refundable. The total amount of tax credits authorized under the bill in a given fiscal year will not exceed $4 million. The program will sunset on December 31, 2028, unless reauthorized by the General Assembly.
SB 707 - Senator Bean
Last Action 1/10/22: Referred to Senate Committee on Agriculture, Food Production, and Outdoor Resources
For all tax years beginning on or after January 1, 2023, this act authorizes a tax credit for retail dealers selling higher ethanol blend at the retail dealer's service station, as such terms are defined in the act. The credit shall be equal to five cents per gallon of higher ethanol blend sold and dispensed through metered pumps at the service station during the tax year. The tax credit shall be nontransferable and nonrefundable.
The total amount of tax credits authorized under the act in a given fiscal year shall not exceed $4 million. This act shall sunset on December 31, 2028, unless reauthorized by the General Assembly.
SB 805 - Senator Hoskins
Last Action 1/20/22: Referred to Senate Committee on Agriculture, Food Production, and Outdoor Resources
This act establishes two tax credits relating to the production and sale of biodiesel fuels.
BIODIESEL RETAIL SALE TAX CREDIT
For all tax years beginning on or after January 1, 2023, this act authorizes a tax credit for retail dealers selling biodiesel blend at the retail dealer's service station, as such terms are defined in the act. The credit shall be equal to two cents per gallon of biodiesel blend of between 5-10%, and five cents per gallon of biodiesel blend in excess of 10% sold and dispensed at the service station during the tax year. Tax credits authorized by the act shall not be transferable but shall be refundable.
The total amount of tax credits authorized under the act in a given fiscal year shall not exceed $16 million. If the amount of tax credits claimed during the fiscal year exceed such amount, the tax credits shall be equally apportioned among the retail dealers claiming the credit by April 15 of such year. This provision shall sunset on December 31, 2028, unless reauthorized by the General Assembly. (Section 135.775)
BIODIESEL PRODUCTION TAX CREDIT
For all tax years beginning on or after January 1, 2023, this act authorizes a tax credit for Missouri biodiesel producers in the amount of two cents per gallon of biodiesel fuel produced by such producer. To qualify for a tax credit, a biodiesel producer shall be a facility that produces biodiesel fuel, is registered with the U.S. Environmental Protection Agency as required by federal law, has begun construction or has been selling biodiesel fuel on or before August 28, 2022, and is at least 51% owned by agricultural producers who are residents of the state, or sources at least 80% of its feedstock, as defined in the act, from within the state. Biodiesel producers that are not at least 51% owned by agricultural producers who are residents of the state and that do not source at least 80% of its feedstock from within the state may receive a prorated tax credit. The tax credit shall equal 1.5 cents per gallon if the percentage of feedstock sourced within the state is between 70-80%, 1 cent per gallon if the percentage is between 60-70%, and 0.5 cents per gallon if the percentage is between 50-60%. Tax credits authorized by the act shall not be transferable but shall be refundable.
The total amount of tax credits authorized under the act in a given fiscal year shall not exceed $4 million. If the amount of tax credits claimed during the fiscal year exceed such amount, the tax credits shall be equally apportioned among the biodiesel producers claiming the credit by April 15 of such year. This provision shall sunset on December 31, 2028, unless reauthorized by the General Assembly. (Section 135.778)
Electric Vehicles
HB 2756 - Representative McCreery
Last Action 2/24/22: Read Second Time
Authorizes a tax credit for the purchase of an electric vehicle. The amount of the tax credit shall be $2500 per eligible purchase. The tax credit is nonrefundable but can be carried forward three years. It cannot be assigned, transferred, sold, or otherwise conveyed.
SB 1193 - Senator Washington
Last Action 2/24/22: First Read
For all tax years beginning on or after January 1, 2023, this act allows a taxpayer to claim a tax credit in the amount of $2,500 for each qualified purchase of an electric vehicle, as such terms are defined in the act. Tax credits authorized by this act shall not be refundable or transferable, but may be carried forward for three tax years.
This act shall sunset on December 31, 2028, unless reauthorized by the General Assembly.
HB 1526 - Representative Ellebracht
Last Action 1/6/22: Read Second Time
This bill creates a tax credit of $1,000 against a person's state tax liability for each qualified electric car purchased for any tax year beginning on or after January 1, 2023. The tax credit is refundable, but cannot be assigned, transferred, sold, or otherwise conveyed, nor can it be carried forward to any subsequent year. The tax credit sunsets six years after it goes into effect on December 31, 2028.
HB 1631 - Representative Morse
Last Action 1/6/22: Read Second Time
This bill authorizes the Department of Revenue to charge and collect, in addition to all other required registration fees, an electric vehicle road use fee and a plug-in electric hybrid vehicle road use fee upon initial registration for each such vehicle, as such vehicles are defined in the bill. The one-time road use fee must be submitted with the initial vehicle registration fee.
For new electric vehicles the fee will be 4% of the list price as defined in statute and for used electric vehicles the fee will be 4% of the vehicle's Kelly Blue Book value. For new plug-in electric hybrid vehicles, the fee will be 2% of the list price as defined in statute and for used plug-in electric hybrid vehicles the fee will be 2% of the vehicle's Kelly Blue Book value. Revenue from the road use fees will be deposited into the State Road Fund and used as provided in Article IV, Section 30(b) of the Missouri Constitution.
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MFTI Legislative Priorities
State Motor Fuel Tax
MFTI was a strong proponent of SB 262, which phases in a 12.5-cent increase in the state motor fuel tax. That legislation was passed during the 2021 legislative session and the first 2.5-cent increment of the increase went into effect on October 1, 2021.
Missourians for Transportation Investment’s highest legislative priority is to protect infrastructure investments secured through the passage of Senate Bill 262. This legislation restored lost purchasing power from decades of inaction on transportation funding and will allow the state to make significant progress toward nearly $1 billion in unfunded needs. Additionally, 30% of the additional investment made possible by Senate Bill 262 is dedicated to helping cities and counties make needed improvements to their transportation systems.
Missourians for Transportation Investment will oppose any and all efforts to repeal or reduce these important investments in Missouri’s future.
Public Transportation
Missourians for Transportation Investment recognizes the important role of public transportation in Missouri’s economy. Public transportation providers operate in every county in the state and provided $3.67 billion in economic impact in 2019. Missourians for Transportation Investment also recognizes the need for additional state investments to support public transportation in Missouri. State support of public transportation has decreased significantly since 2002.
The state has a unique opportunity to secure significant federal funding to address $170 million in unfunded public transportation needs. Missourians for Transportation Investment supports a minimum state investment of $8 million in public transportation during the next fiscal year.
Port Funding
Missourians for Transportation Investment recognizes the important role of ports in Missouri’s economy. Missouri ports support nearly 290,000 jobs annually in the State of Missouri, resulting in more than $100 billion in annual economic activity. Missourians for Transportation Investment recognizes the unique opportunities resulting from the expansion of the Panama Canal and the potential that brings to Missouri’s ports.
As Missouri’s elected leaders debate how to spend budget surpluses during the 2022 legislative session, Missourians for Transportation Investment supports using surplus funds to reduce a list of $329 million in unfunded port projects around the state.
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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 about the advocacy calls, send them to info@mfti.org.
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