Finally—

Somebody has come up with a way for the legislature to improve financing of our roads and bridges while also anticipating the growth of electric vehicles and their impact on future transportation infrastructure funding. The idea is halfway through the legislative process but some observers think the road ahead is uphill. And the hill is the House of Representatives.

Your loyal observer observed the last part of Missouri Senate debate on the bill sponsored by Senate President Pro Tem Dave Schatz of Sullivan last Thursday morning, shortly before the Senate adjourned for spring break. Schatz, who thinks returning to gravel roads is not much of a solution to our present road upkeep problems, has gotten his gas tax increase bill through the Senate but he had to work for it.

Passage of the bill was reminiscent of some of the bi-partisan collegiality and compromise in which the Senate takes pride but which has too often in many recent years been missing.

Earlier in the week, Schatz’s plan for a 15-cent per-gallon fuel tax increase ran into a roadblock thrown up by the conservative caucus, a group of senators that seemingly opposes any kind of a tax increase any time (the present tax rate of 17 cents a gallon ranks Missouri 49th in the country in fuel tax level).  Our last gas tax was a phased-in tax that peaked in 1996.

MODOT doesn’t buy much asphalt, cement, or winter salt and the equipment to spread it for 1996 prices these days.  But it sure could use the estimated $460 million a year the increased tax will produce when it’s fully effective.

The compromise bill phases in a 12.5 cent increase through five years.  For those who think roads and bridges can be built and maintained for free, there’s a provision that lets people save all of their receipts printed at the pump and then claim a full rebate of the new taxes.  It’s a nice touch to mollify some no-tax folks, many of whom won’t keep track of all of those receipts to claim 2.5 cents per gallon at the end of the year.

We calculate that somebody traveling 12,000 miles a year in a vehicle that gets 20 miles per gallon would get back $15, not much money for the hassle of saving all those receipts.

We’ve observed previously in some of these conversations the growing number of vehicles that do not contribute to the cost of maintaining our road and highway system, which is why we are gratified to see a provision in this bill that increases present EV fees by twenty percent during the next five years.

As we understand present law, the owners of Alternative Fuel Vehicles have to buy a decal from the state. For cars that are not powered by electricity, that decal is $75. AFVs weighing 18 tons or more have to have a $1,000 decal in the window.  For plug-in hybrid electric vehicles, the decal costs half of the fee for vehicles that powered by fossil fuels.

But is that half-off fee proper for EVs fair to the road system?  That’s where another welcome part of Schatz’s bill kicks in. It establishes the “Electric Vehicle Task Force” within the Revenue Department to recommend future legislation on ways EVs can appropriately contribute to the infrastructure they use.

There is never an ideal time for a tax increase as far as the public and some members of the legislature are concerned.  But two or three pennies a gallon will mean that the state can afford do more than to apply cold patches to potholes and keep fingers crossed that rusty bolts on bridges will hold on a little bit longer.

I’d rather pay a little more at the pump than read about school buses winding up in a rural creek on the wsay to school.

There’s no guarantee the House will accept Schatz’s plan or recognize the compromise work that got it passed (every Senate Democrat joined with some of the members of Schatz’s party to pass the bill).  From our lofty position, however, it seems to be a prudent, responsible approach to dealing with a major problem today while laying the groundwork for dealing with our electric-powered future.

 

One thought on “Finally—

  1. I own a Tesla. So, I pass by those taxing gas stations. The Missouri revenuers sent me a notice a month or so ago telling me I had to buy a sticker for my front window as an alternative tax since I was free-loading. I did. Interestingly, my sticker is number 000002. Yep, I was only the second sticker “sold” in the state; however, I feel good knowing I’m doing my part. We indeed need good roads. I just don’t understand my conservative friends. Weird.

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