- Introduced -

SJR 40 - This proposed constitutional amendment modifies Article IV of the Missouri Constitution. The resolution raises the motor fuel tax by 5 cents beginning January 1, 2003. The motor fuel tax increase will terminate on December 31, 2012, unless the people vote for its continuation in a future election.

The resolution modifies the cost of collecting the fuel tax by limiting the amount of the deduction for costs to 3% of the amount collected after June 1, 2003.

The resolution modifies the language of subsection 5 of Section 30(a) regarding Hancock limitations by stating that the net fuel proceeds to counties and cities will not be considered an "expense of state government".

The costs for collecting highway user fees is limited to 3% of the tax or fee collected beginning June 30, 2003. The resolution phases out the amount of highway user fees that can be used to pay the costs of the Highway Patrol. After June 30, 2007, no amount shall be appropriated from highway user fees and taxes for administering and enforcing state motor vehicle laws. The costs of maintaining the highway related activities of the MoDOT (workers' comp and retirement) is not deducted before the user fees and taxes are deposited in the Road Fund. Instead, these costs are treated as an expense of the Road Fund.

The distribution formula of the motor vehicle sales tax is altered. The state road fund will receive an additional one percent (from 74% to 75%) by eliminating the 1% the state transportation fund currently receives from the sales tax on motor vehicles.

Beginning July 1, 2003, the current 50% of the sales tax on motor vehicles which currently goes to general revenue is deposited in the State Highway Patrol Fund to pay for their expenses. The amounts the fund receives is phased in over time. After June 30, 2007, the fund will receive all the proceeds. The fund shall only be used for state highway patrol purposes. The fund is subject to the appropriation process of the General Assembly.

The motor vehicle sales tax allocated to this provision shall not include the Conservation taxes nor the Proposition C tax.

Beginning January 1, 2003, this resolution imposes a 5/8 sales and use tax. The tax imposed by this provision shall be effective without action of the General Assembly.

The additional 5/8 sales tax is distributed as follows:

1. 80% to the State Road Fund (stands appropriated without legislative action); and

2. 20% to the State Transportation Fund (created in Section 30(c)).

The sales tax expires on December 31, 2012, unless renewed by the voters. The sales tax shall not be included within the definition of "total state revenues" nor in "expense of state government". The resolution sets forth the ballot language that must be submitted to the voters for their approval.

The state transportation fund will receive 20% of the one-half portion of the motor vehicle sales tax and any other appropriations. The fund will be used for non-highway purposes. The monies in the fund stand without appropriation.

STEPHEN WITTE