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Summary of the one-cent transportation sales tax proposed by Sen. Kehoe and McKenna

SJR 16 – This constitutional proposal, if approved by the Missouri voters, would raise the state sales and use tax by one percent for a period of ten years. The proceeds from the additional sales and use tax are to be used for transportation purposes. The temporary sales and use tax measure must be resubmitted to the voters every 10 years until such measure is defeated.

Five percent of the sales and use tax proceeds shall be deposited into the County Aid Transportation Fund, which is created in the state treasury by the resolution. Moneys 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 brides, 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 in the state treasury by the resolution. Moneys 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 Sales Tax Fund”. Moneys in the Transportation Sales Tax Fund may be expended by the commission for state highway system purposes or for state transportation system purposes and uses (multimodal).

The resolution requires the one percent sales and use tax to expire in 10 years unless renewed by the voters. If the decennial sales and use tax measure is ever disapproved by the Missouri voters, the sales and use tax will terminate at the end of the year following such election. The resolution prohibits the General Assembly from increasing or decreasing the gasoline tax during such period without the approval of the voters.

The resolution prohibits the General Assembly and State Highways and Transportation Commission from imposing tolls on highways in existence at the time of the resolution’s adoption while the sales and use tax is in effect without the approval of the voters.

The resolution requires the commission to annually submit a report to the Governor and General Assembly. The report shall include the status of state highway system and state transportation system projects, programs and facilities that were approved by the commission and funded from the proceeds of the additional state sales and use taxes levied, imposed, and collected under the resolution.


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