State’s new gas tax starts Friday, Oct. 1

Missouri drivers are sure to see an increase at the gas pumps next month. Governor Mike Parson signed Senate Bill 262 into law last July, which has a provision which will raise the tax on gasoline starting Friday, Oct. 1.
The money gained by the increase in the tax will go to improving the state’s transportation and roads infrastructure.
Currently, Missouri drivers pay 17 cents per gallon, which is the second lowest in the United Sates. The bill will increase the tax by 2.5 cents per year for the next five years, for a total of 12.5 cents by 2025.
Now 17.4 cents per gallon, will go to 19.9 cents starting in October.
Prior to the implementation of the new fuel tax, the state of Missouri was among six U.S. states with a gasoline tax of less than 20 cents per gallon. When the new gasoline tax is fully implemented in July 2025, the tax per gallon will be 29.9 cents per gallon, and Missouri will be one of 24 states with a gasoline tax of less than 30 cents per gallon, provided none of those other states raise their per gallon fuel tax.
The lowest per gallon gasoline tax is in Alaska, at 8.95 cents per gallon while the highest in the nation is Pennsylvania (57.6), followed by California (55.5) and New Jersey (50.4), according to the Federation of Tax Administrators.

When the tax is fully implemented it is estimated to draw $460 million annually for the state’s roads and bridges. The current gas tax produced $692 million in 2020.
For drivers, it is estimated to cost the average midsized car driver $70 per year, while truck drivers will spend an extra $100 at the pump, when the measure is fully implemented.
Missouri’s fuel tax was last raised in 1996 when the legislature passed a six-cent per gallon increase. A state-wide referendum to increase the gas tax failed in 2018. The state average in the country for fuel tax is around 37 cents per gallon.
The bill received much support likely based on the refund component that available to Missourians.
The bill notes that states residents who keep their gas receipts can apply for a refund if they file a claim from July 1 through Sept. 30, following the fiscal year for which the exemption and refund is claimed.
There is an Interstate Commerce Clause in the bill, which states that people from out-of-state who gas up in Missouri are also eligible for a similar refund.