Tagged: sales tax

A proposed 1-cent sales tax for transportation has stalled in the Missouri Legislature.

The sales tax proposal was projected to generate nearly $8 billion over a decade for state highways, local roads and other modes of transportation such as railroads, airports, mass transit and river ports. Cities and counties would each get 5 percent of the revenues, with the rest going to state projects. Voters would have had to approve the tax in 2014 to enact the proposal.

Missouri House members have endorsed a 1-cent sales tax that would be dedicated to paying for state and local transportation projects.

Missouri Governor Jay Nixon has vetoed a bill which would have levied sales taxes on out-of-state auto, boat and other vehicle purchases. 

The Governor vetoed a similar bill in May of last year.

Friday's action marks the second time in two years he has rejected the Legislature's attempt to reverse the effect of a 2012 Supreme Court ruling.

The Missouri Senate has passed a proposed 1-cent sales tax to fund state and local transportation projects.

The tax would require approval by Missouri voters and go back on a statewide ballot after 10 years.

Officials estimate the tax would generate nearly $8 billion over a decade with 10 percent dedicated to local transportation needs.

The proposal now goes to the House after clearing the Senate Thursday on a vote of 24-10. All the opponents were Republicans.