Public Hearing Scheduled for Fuel Tax Repeal Bill
House Bill 1594 (HB 1594), sponsored by Representative Sara Walsh has been scheduled for a public hearing at 12:00 pm on Tuesday, February 8 in House Hearing Room 7. A live feed of the hearing can be accessed here.
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.
In an effort to keep the message focused on opposition to HB 1594, MFTI strongly encourages members to submit written testimony in opposition for HB 1594. Testimony can be submitted online here.
Reasons to oppose HB 1594 include:
- HB 1594 will reduce investments in the state’s roads and bridges. When fully implemented, SB 262 is estimated to increase transportation investment in Missouri’s roads and bridges by approximately $400 million annually to support the nation’s 7th largest road and bridge network and to move us out of literally last place in funding. An estimated $100 million of that annual total will go to cities and counties for local infrastructure.
- HB 1594 would take away an opportunity to fix roads and bridges that are long past due for maintenance and improvements. Missouri citizens and regional planning organizations have identified $1 billion in annual high priority, unfunded annual transportation needs. Repealing SB262 will just put Missouri that much farther behind in addressing those needs.
- HB 1594 denies Missouri voters a choice. SB 262 allows those who want to invest in the state’s roads and bridges to do so and allows those who don’t to receive a refund. What SB 262 doesn't allow is for voters to dictate to their neighbors, who may not share their view, whether or not they can, or must, invest in roads and bridges. HB 1594 tells those Missouri voters who want to make additional investments in the state's roads and bridges that they can't.
- SB 262 received strong bipartisan support in both chambers of the Missouri General Assembly. It was voted out of the House Transportation Committee 13-0 and passed the House by a vote of 104-52 because it is a sensible solution to a problem that has plagued our state for decades. The need has not changed since those votes.
Please take this opportunity to demonstrate your opposition to this effort to deny Missouri voters a choice to invest in roads and bridges. Submit your written testimony in opposition to HB 1594 today.
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Attend MFTI Legislative Day February 16
As HB 1594, a bill to repeal the state motor fuel tax increase enacted last year, makes its way to the floor of the Missouri House of Representatives for debate, it's important for transportation supporters to make their voices heard in the capitol.
Join us on February 16 for MFTI Legislative Day in the Capitol to show your support for transportation funding and your opposition to efforts to repeal SB 262.
To register for the in-person February 16 Legislative Day in the Capitol, send an email with the names and email addresses of those from your organization who plan to attend to info@mfti.org.
This legislative day is one in a series of legislative days coordinated by Missourians for Transportation Investment during the 2022 Legislative Session. These sessions are designed to provide opportunities for members to engage their local representatives and senators in a discussion on transportation investment. Legislative Days are planned to be in-person. Alternative plans will be made if in-person visits are not allowed.
Legislative Days in the Capitol are scheduled for the following dates:
- Wednesday, February 16, 9 am to 3 pm
- Tuesday, March 8, 9 am to 3 pm
- Tuesday, April 19, 9 am to 3 pm
- Wednesday, May 4, 9 am to 3 pm
On each date, meetings will be scheduled with legislative leaders and participants will be encouraged to visit their local state senators and representatives to discuss the importance of transportation investment.
Each Legislative Day in the Capitol will also include an orientation and a legislative briefing. Participants will be provided materials to share with their legislators.
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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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Legislation Update
State Motor Fuel Tax
HB 1594 - Representative Walsh
Last Action 2/1/22: Scheduled for a public hearing in the House Special Committee on Government Oversight at 12 pm on February 8 in House Hearing Room 7
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.
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.
Federal Funds
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.
SB 932 - Senator Eigel
Last Action 1/5/22: Read First Time
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.
State Motor Fuel Tax Exemptions
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.
HB 2293 - Representative Knight
Last Action 2/1/22: Referred to 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.
Biofuels
HB 1695 - Representative Gregory
Last Action 2/1/22: Referred to House Committee on Rules-Administrative Oversight
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 2/1/22: Referred to House Committee on Rules-Administrative Oversight
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 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.
Transparency & Accountability
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.
SB 962 - Senator Luetkemeyer
Last Action 1/5/22: Read First Time
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).
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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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