Gas Tax Holiday Would Harm Highways

JEFFERSON CITY - Pete Rahn, director of the Missouri Department of Transportation, responded quickly today to a proposal to suspend collection of some gax taxes for 14 days.   Rahn stated that the initiative would result in a loss of $19.1 million in funding for state highways and local roads.

"I sympathize with our state's motorists, but this proposal would harm our ability to provide road and bridge improvements promised to Missourians," Rahn said.   "We would face a considerable loss of revenue at a time when we don't have enough money to address the extensive needs of our state highway system."

Rahn estimates that a 10-cent gas exemption over 14 days along with a permanent school bus fuel exemption, as detailed in the proposal, would result in the loss of $13.8 million for vital state highway improvements.   At the same time, cities and counties would lose $5.3 million to improve their roads and bridges.

"Missourians experience a clear connection between the state gas taxes they pay and the condition of their highways," Rahn said.   "We are committed to ensuring that every dollar paid in gas taxes is used to make our highways smoother and safer, but the fewer dollars we have the fewer improvements we can make."

Bonding efforts also could be jeopardized by the proposal, according to Rahn.   He said that any impact to Missouri's gas tax revenue could invoke concern among bondholders, which would cause interest rates on future bonds to increase.

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