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Sales and Fuel Tax Proposal Would Go To Highway Maintenance

To help the department of transportation, one Missouri senator proposed a 650 million dollar a year tax increase. Seth Bachelier has the story from Jefferson City...

Senior Democratic senator James Mathewson has proposed raising the gas tax by two cents per gallon and sales taxes by one penny on the dollar.

And this tax will be subject to voter approval.

But, Mathewson said that tax cuts over the last few years have caught up with the state and a new source of revenue is necessary.

And Mathewson says that Missourians made the choice for him.

But, Republican senator David Klarich says he thinks there are alternatives to increasing revenue other than through sales taxes.

Klarich says the best alternative would be to use existing money from motor vehicle sales on transportation projects.

From Jefferson City, I'm Seth Bachelier.

A bill filed in the Missouri Senate may increase state taxes by 650 million dollars a year. Seth Bachelier has the story from Jefferson City...

To increase revenue for highways, senior Democratic senator James Mathewson proposes to hike up sales taxes by 1% and fuel taxes by 2 cents per gallon.

And this tax will be subject to voter approval.

Mathewson says tax cuts in the past have created a 300 million dollar shortfall in the state's budget.

But, Republican senator David Klarich says he doesn't know if taxes are the answer.

Among the many alternatives, Klarich says he thinks that existing money from motor vehicle sales would be the best source of revenue for transportation needs.

From Jefferson City, I'm Seth Bachelier.