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All News >> Momentum

View the Summer 2021 Momentum Issue

Missouri Lawmakers Pass First Motor Fuel Tax Increase Since 1996

June 7, 2021

Written By Adam Buckallew

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The Missouri General Assembly has passed a bill that would increase the state’s motor fuel tax rate for the first time in 25 years. The measure, which was sent to Gov. Mike Parson on May 11, would gradually increase the tax on gasoline, diesel and other transportation fuels by 12.5 cents per gallon over the next five years.

Beginning in October, the legislation would add 2.5 cents per gallon to the current 17-cent-per-gallon fuel tax and increase an additional 2.5 cents per gallon each of the following four years. The additional fuel tax is expected to generate hundreds of millions of dollars that would be used to repair the state’s roads and bridges.

Gov. Parson has indicated he is likely to sign the bill which would raise Missouri’s motor fuel tax rate from the second lowest in the country to a rank closer to the middle. The measure includes a rebate option on the additional tax which would give drivers the option to request a refund from the Missouri Department of Revenue with proof of their motor fuel purchases.

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