6Missouri House endorsed a proposed one-cent sales tax increase

The Missouri House endorsed a proposed one-cent sales tax increase that could raise nearly $8 billion over a decade for transportation projects today with only three days left in the legislative session.   The vote passed 100-57.

Senator Kehoe will now take the bill to the Senate for one final vote. If approved, Missouri residents will have a chance to vote on the proposed one cent for transportation in November 2014.  If passed, the tax would be resubmitted to the ballot after 10 years so Missourians could decide whether to continue it.

Five percent of the sales and use tax proceeds shall be deposited into the County Aid Transportation Fund, which is created by the resolution. Monies in the newly created fund shall be distributed to the various Missouri counties in a manner similar to how motor fuel tax proceeds are distributed to counties. The sales and use tax proceeds distributed to the counties may be used for local highways and bridges, state highway system purposes, or for county transportation system purposes (multimodal).

In a similar manner, five percent of the sales and use tax proceeds shall be deposited into the Municipal Aid Transportation Fund, which is created by the resolution. Monies in the newly created fund shall be distributed to the various Missouri cities, towns and villages in a manner similar to how motor fuel tax proceeds are distributed to such political subdivisions. The sales and use tax proceeds distributed to the cities, towns, and villages may be used for local roads and streets, state highway system purposes and uses, or for city transportation system purposes (multimodal).

The remaining sales and use tax proceeds (90%) shall be deposited into a newly created trust fund known as the “Transportation Safety and Job Creation Fund”. Monies in the Transportation Safety and Job Creation Fund may be expended by the commission for state highway system purposes or for state transportation system purposes and uses (multimodal).

Currently, there is no dedicated funding source in the bill for public transit and other modes. The Blue Ribbon Commission Report identified $250 million a year need for public transit. 

MapofstatefundingfortransitThe image (right) illustrates Missouri’s funding for public transit last year (the Governor requested the same amount this year in his budget) compared to its neighbors. This $560,000 is spread over 33 transit providers in the state.

According to MoDOT’s breakdown, this tax would generate about $1.76 billion for the St. Louis region over the the 10 year timeframe.  The East-West Gateway Board of Directors in partnership with the MoDOT Commission will select the projects that would be funded for the 1o year period.   As members of CMT and friends of transit, it will be imperative to ensure that a portion of these funds are used for public transit projects in the region. 

Complete text of the House bill adopted.