States raise transportation taxes after federal cuts

Queena Kim Aug 5, 2014
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States raise transportation taxes after federal cuts

Queena Kim Aug 5, 2014
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On Tuesday, Missouri voters are headed to the ballot booth to decide on whether to increase the state’s sales tax. The additional revenue would be used to fund the maintenance and construction of roads and bridges.

The state of disrepair of the nation’s transportation infrastructure has been a known problem for quite a while now. What isn’t known is who’s going to pay to fix it.

Phil Oliff, who researches infrastructure issues for the Pew Charitable Trust, says traditionally, “states get a lot of money that they spend on highway and transit infrastructure from the federal government.” Most of that money comes from the Federal Highway Trust Fund, but the fund is running out of money, and Congress has been doling out funding in short-term increments. That’s bad news for states, who need more certainty about their financial situation when they commit to long term projects. Many states are taking it upon themseves to raise the money independently.

That could mean tolls on roads and bridges. It could mean borrowing from the bond market. In Missouri, lawmakers are proposing a three-quarter-of-a-cent increase in the sales tax.

Tom Shrout, of the advocacy group Missourians for Better Transportation, says says the tax is unfair to locals.

Big trucks passing through Missouri, they would be asked to pay nothing while a senior citizen who doesn’t use the roads much will be asked to pay more,” he points out.

As Missourians head to the polls, the Associated Press says nearly a quarter of the states have already instituted similar taxes, fees or fines to pay for infrastructure projects.  

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