MODOT Seeks Funding Answers with New Sales Tax
By: Alexander Hassel
Updated: January 26, 2013
The Missouri Highways and Transportation Commission is asking lawmakers to put a one cent sales tax increase on the ballot as soon as possible.
The increase would pay for improvements to roads and bridges all over Missouri.
A one cent sales tax across the state could fix a growing funding problem.
"We're not asking the legislature to do a tax increase. What we're asking the legislature to do, is to allow the citizens of Missouri to vote on whether they wish to tax themselves for transportation," says Rudy Farber, Chairman of the Missouri Highways and Transportation Commission.
Historically, MODOT has found funding with fuel taxes, but as fuel costs rise, people drive less, and use more economical vehicles, the department can't hold on much longer.
"Actually, the fuel tax is a decreasing revenue source, and that, going forward, it won't sustain our system the way it is," says Bob Brendel, MODOT Outreach Coordinator.
To compensate, MODOT has downsized over the past several years, but moving on, it says it still needs more help.
"Right now, our construction budget has fallen to about 700 million dollars a year, which is enough to maintain our system, but not much else," says Brendel.
Experts estimate with a new sales tax, it would add nearly $8 billion in funding over the next 10 years.
More than $5 billion would be divided among the seven districts.
"Some of that would be shared for the cities and counties for their local systems. Some of it would be used to bond the reconstruction and widening of interstate 70," Brendel says.
So far, polls show that citizens in Missouri could be in favor of the idea.
"Whether that stays true or not, whether the legislature comes through, all I can say is that we're going to work as hard as we can to try to represent the people of Missouri because we think they deserve a vote on this," Farber says.
Now it's up to lawmakers.
MODOT says if new revenue comes along from the sales tax, it will not create new jobs.
The company will continue work without adding new positions.


