(KMOX) - Missouri's gas tax increase takes effect on Friday. It's the first incremental hike in the state since 1992.
The passage of SB 262 this year, approved the gradual tax increase on gasoline and diesel fuel by 12.5 cents per gallon over the next five years. It will increase 2.5 cents each year.
"Previously, Missouri's gas tax was 17 cents per gallon. It was the second-lowest fuel tax rate in the country, trailing only behind Alaska," AAA spokesman Nick Chabarria says.
The Missouri Department of Transportation estimates Missouri faces a $745 million annual funding gap for roads and bridges. The new law could generate more than $500 annually for the state.
Gas prices are up a dollar from this time last year. Chabarria says that's because the pandemic decimated the demand for gasoline, which dropped crude oil prices.
But Missourians can get some relief, if you hold on to your gas receipts. The new law also allows drivers to apply for a refund on the new tax increase.
"Starting (Friday), if drivers hold on to their gas receipts, next July they can begin to file with the Missouri Department of Revenue," Chabarria says.
Related
© 2021 KMOX (Audacy). All rights reserved
LISTEN on the Audacy App
Follow KMOX
Facebook | Twitter | Instagram