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BusinessJuly 15, 2002

Proposition B is Aug. 6 Business Today JEFFERSON CITY -- Missouri counties and municipalities large and small would share an extra $51.8 million a year for local road and bridge projects if voters approve Proposition B. The ballot measure, which Missouri voters will decide on Aug. 6, calls for adding 4 cents to the state fuel tax and increasing the statewide sales tax by a half cent...

Proposition B is Aug. 6

Business Today

JEFFERSON CITY -- Missouri counties and municipalities large and small would share an extra $51.8 million a year for local road and bridge projects if voters approve Proposition B.

The ballot measure, which Missouri voters will decide on Aug. 6, calls for adding 4 cents to the state fuel tax and increasing the statewide sales tax by a half cent.

Though the bulk of the estimated $483 million a year generated by the tax package would go to the Missouri Department of Transportation, the state Constitution earmarks a portion of fuel tax revenue and sales taxes from vehicle purchases to cities and counties.

MoDOT spokesman Jeff Briggs said that revenue is dispersed to local governments in monthly payments with no strings attached - except that the money must be used for transportation.

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Currently, cities receive $143 million a year in state transportation money and counties $107 million. Passage of Proposition B would provide an additional $26.55 million for municipalities and $25.25 million for counties - a 21 percent combined increase.

Each city's share is determined based on its population. Among Southeast Missouri cities, Cape Girardeau would get the biggest boost from new taxes - $256,400. Biehle, population 11, would get $100 a year.

Cape Girardeau city manager Michael Miller said city officials haven't discussed what they would do with the extra quarter-million dollars if the tax issue passes.

The allocation for counties is calculated on a county's assessed rural land valuation and total county road miles.

The money Southeast Missouri counties would receive from the tax hike ranges from a low of $72,900 for Carter County to a high of $259,000 for Stoddard County. Butler County would come in a close second with another $258,900 a year.

Gary Markenson, a lobbyist of the Missouri Municipal League, that while cities and counties would get some benefits from Proposition B, his group dislikes the sales tax component. Increasing the state sales tax, he said, would hamper the ability of municipalities to raise their own sales taxes for transportation, capital improvements and other needs. However, he said the Municipal League isn't taking a position on the issue.

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