Funding History

Funding History

Year Event
2021 Gov. Mike Parson signed Senate Bill 262 into law, including the state's first motor fuel tax increase in 25 years. An increase of 2.5 cents went into effect in October, and the tax will increase by 2.5 cents each year until reaching a total of an additional 12.5 cents in 2025. A refund on this new increase is available for all individuals who apply for one. MoDOT has developed a high-priority unfunded needs list with regional planning partners in all regions of Missouri. The list serves as MoDOT’s guide as additional state or federal funding become available.  Additional funding generated from the tax increase will fund projects on this list.

Missouri voters turned down Proposition D by a margin of 53.6 percent (1,281,143 votes) to 46.4 percent (1,109,009 votes). The measure would have raised the state fuel tax by 10 cents in 2.5-cent increments each year for four years. Had it passed, the proposal would have generated at least $288 million annually for Missouri state law enforcement and $124 million annually for local governments for road and bridge construction and maintenance, thus redirecting about $241 million annually to state road and bridge projects.

2014 Missouri voters turned down Constitutional Amendment 7 by a margin of 59 percent (590,495 votes) to 41 percent (407,532 votes). The measure would have raised the state sales tax by ¾-cent for 10 years and generated $5.4 billion (10 percent of that total would have been split among cities and counties). During the same 10-year period, the state gas tax would have been frozen. Had it passed, the amendment would have enabled more than 800 locally prioritized projects on the state system across all modes of transportation.

In July, the start of fiscal year 2009, Amendment 3 is fully phased-in, providing MoDOT with all of the motor vehicle sales tax revenues previously going to General Revenue.

MoDOT sold bonds for a portion of the new Interstate 64, a design-build project in the St. Louis region. For the first time, MoDOT secured bonds primarily with federal funds, rather than state funds. These bonds are called Grant Anticipation Revenue Vehicle (GARVEE) bonds.

2004 In November, Missouri voters approved Constitutional Amendment 3, which requires all revenues collected from the sale of motor vehicles come to MoDOT. Previously, half of the sales tax went to MoDOT and half to the state’s general revenue fund. It requires the Missouri Highways and Transportation Commission to issue bonds for building highway and bridge projects and uses these additional revenues to pay back the bonds over a period of time. The additional Amendment 3 revenues are to be phased-in over a 4 year period in 25 percent increments.
2002 Legislation is passed extending the 6-cents-per-gallon motor-fuel tax, which was due to expire in 2008. Proposition B, an omnibus transportation bill that would have increased the motor-fuel tax by 4 cents per gallon and the general sales tax by 1/2 percent, is defeated by voters by a 3-to-1 margin.
2000 Legislation was passed, effective May 30, 2000, allowing MoDOT to issue $2.25 billion in bond financing to accelerate highway improvements. Up to $250 million in bonds can be issued in 2000 and up to $2 billion from 2001 through 2006. Projects funded by the first $250 million were required to come from MoDOT's 5-Year Statewide Transportation Improvement Program. MoDOT can issue up to $500 million per year in bond financing through the year 2006. MoDOT submits a bond financing project list to the Legislature each January for approval.
1992 A 6-cent per gallon increase in the motor fuel tax is passed by the Legislature. The 6 cents is to be phased in over a 5-year period; 2 cents in 1992, 2 cents in 1994 and 2 cents in 1996.
1987 Proposition A, a constitutional amendment to increase the motor fuel tax by 4 cents per gallon, is approved by the people. It becomes effective June 1.
1984 Fees for motor vehicles and truck classes not raised in 1983 are increased.
1983 Fees for some classes of trucks are increased.
1982 Proposition B, a constitutional amendment to raise the motor fuel tax by 4 cents per gallon, is defeated by the people.
1979 Voters approve a constitutional amendment changing the CART distribution formula. Counties receive 10 instead of 5 percent, cities receive the same 15 percent and the state receives 75 instead of 80 percent. The law is effective Jan. 1, 1980. The amendment also merges the Highway Department with the Transportation Department. Also included in this legislation is a provision that one-half of the motor vehicle sales tax go to finance road and bridge construction. Of this half, 74 percent would go to the state, 15 percent to the cities and 10 percent to the counties. The remaining 1 percent goes for planning of other transportation modes.
1978 An initiative petition to increase the fuel tax 3 cents per gallon is defeated.
1972 The Legislature passes a bill increasing the gas tax from 5 cents to 7 cents per gallon.
1961 The Legislature passes a bill temporarily raising the fuel tax from 3 cents to 5 cents per gallon. The bill provides that a constitutional amendment be put before the people which would allow cities and counties to share in state motor fuel tax revenues. If the amendment is not submitted within six months, or if it is rejected, the tax would revert to 3 cents. Voters approve the amendment on March 6, 1962, and the 5-cent per gallon tax becomes permanent. This act establishes the County Aid Road Trust program.
1952 On March 24, an act is approved increasing the motor vehicle tax from 2 cents to 3 cents per gallon. The law becomes effective July 29.
1950 On April 4, Missourians again reject a referendum proposal to increase the motor vehicle tax. The proposal would have increased the tax from 2 cents to 4 cents per gallon.
1938 On Nov. 8, the people defeat by referendum election an attempt of the Legislature to raise the fuel tax from 2 cents to 3 cents per gallon. At the same time, an initiative petition proposal to amend the Constitution to fix the fuel tax at 3 cents for 10 years is also defeated.
1924 A 2-cent tax rate for motor vehicle fuel is adopted by a vote of the people under initiative petition. It is the state's first motor fuel tax.