MoDOT Proposed Gas Tax Increase Falls Well Short of Funding New I-70, Future Projects

MoDOT recently came forward with some ideas on how it might pay for the $1.5-4 billion project to rebuild and widen I-70 between Kansas City and St. Louis. The two options they proposed included 1) a 15¢ increase in the state gas tax over ten years, 2) tolling I-70, or both. For purposes of this post, let's focus on just the gas tax option. While I wrote about the declining value of the state gas tax a little over a month ago, MoDOT's proposal will allow us to go into a little more detail.

Missouri's state gas tax currently stands at 17¢ a gallon and has not changed since 1996. Let's assume that the proposed gas tax increase first takes effect in 2013. Over the next 9 years, the state gas tax will almost double to 32¢. Assuming the status quo for other states, the new rate would place Missouri 16th, between Oregon and West Virginia.