Missouri Senate backs compromise gas tax hike bill

JEFFERSON CITY, Mo. -- Missouri senators Wednesday gave initial approval to a gas tax hike, despite Republican division over tax increases.

The bill would raise Missouri's gas tax of 17 cents per gallon for the first time in two decades. It stalled Tuesday after hours of Republican infighting, but a compromise lowering the amount of the increase from 15 cents to 12.5 cents per gallon by 2025 passed in a voice vote Wednesday. Drivers could get a rebate for the tax hike if they keep their gas receipts.

The measure also would increase electric vehicle fees by 20% over five years. Fees vary depending on the size of electric vehicles.

The compromise came two days after the Senate rejected a bill gradually eliminating the personal property tax on items such as cars, boats and machinery, The Kansas City Star reported.

Opponents raised concerns eliminating the personal property tax would have harmed local governments, which use the revenue to fund services such as police.

Sen. Bill Eigel, a Weldon Springs Republican and who sponsored the bill, said the lost revenue could be replaced with inflation-driven increases to real estate taxes. But only 13 Republican Senators voted for the measure.

Eigel and others responded Tuesday by stalling debate on the gas tax bill.

The gas tax bill would need another vote of approval in the Senate before it could go to the House for consideration.

Also Tuesday, the House gave initial approval to a bill taxing out-of-state purchases. It would need to pass another House vote before going to the Senate. Missouri is one of only two states in the country that doesn't tax such purchases.

Supporters say it would even the playing field for in-state retailers, but some Republicans have opposed any hike in taxes without a corresponding decrease elsewhere in state revenue.