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Proposition D/Motor Fuel Tax Increase – Summary

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In the 2018 state legislative session, lawmakers passed House Bill 1460, which places a proposed increase in Missouri’s fuel tax on the November 2018 general election ballot. The ballot measure, known as Proposition D, would phase-in a 10 cent increase the state fuel tax over a four-year period, beginning on July 1, 2019. Once fully implemented, Missouri’s fuel tax would increase from the current rate of 17 cents per gallon to 27 cents per gallon. The increase would be applied to gas, diesel and alternative fuels such as propane and natural gas.

Once fully implemented, the fuel tax increase is expected to generate an additional $420 million per year in the state’s motor fuel tax fund. Funding in the motor fuel fund is divided between localities and the state, with 12% distributed to counties, 15% to cities and 73% to the state road fund.

Increased State Funding Would Support Highway Patrol

The state constitution currently directs a portion of the state road fund to support the Missouri Highway Patrol and their work to enforce traffic regulations and provide for the safety of motorists. In the 2018 state budget year, $240 million of the state road fund was appropriated to the Missouri Highway Patrol.

Proposition D would direct the state portion of the fuel tax increase to the Highway Patrol, subject to appropriations by lawmakers. The increase in funding for localities would be used to help support city and county road budgets, generating improvements to locally operated roadways and bridges.

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