Fuel Tax Increase to Provide Additional Road Funding for Cities and Counties

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According to recent projections released by the Missouri Department of Transportation (MoDOT) counties and municipalities across the state can expect to begin seeing additional revenues for local roads and bridges. Missouri, cities and counties will benefit from the 12.5 cent state fuel tax increase, which beginning in October 2021, will see the state gas tax increased 2.5 cents per gallon, with similar increases annually phased in over 5 years, until reaching the full 12.5 cents in July 2025.

County Aid Road Trust (CART) funds are distributed by the Missouri Department of Revenue to cities and counties. Cities and counties each receive 15 percent of the state gas tax. The funds are apportioned to cities based on population; and to counties based half on road miles and half on land valuation.

According to the Missouri Association of Counties, in 2021 statewide county CART funds were projected to be allocated in the NEMO RPC counties as follows:

Adair County – 0.0058% of $111.7 million = $647,860

Clark County – 0.0045% of $111.7 million = $502,650

Knox County – 0.0042% of $111.7 million = $469,140

Lewis County – 0.0041% of $111.7 million = $457,970

Schuyler County – 0.0027% of $111.7 million = $301,590

Scotland County – 0.0041% of $111.7 million = $457,970

According to MoDOT, the total 12.5 cent fuel tax increase is projected to generate the following increases (Estimated revenue each will receive once the gas tax is fully phased in over the next 5 years and before any refunds would be requested):

Adair County – $445,278

Clark County – $346,525

Knox County – $321,239

Lewis County – $315,398

Schuyler County – $208,819

Scotland County – $314,494

According to MoDOT, the total 12.5 cent fuel tax increase is projected to generate the following increases for local cities:

ADAIR COUNTY

Brashear – $5,301

Gibbs – $2,078

Kirksville – $339,888

Millard – $1,728

Novinger – $8,854

SCHUYLER COUNTY

Downing – $6,505

Glenwood – $3,806

Greentop – $8,582

Lancaster – $14,135

Queen City – $11,611

CLARK COUNTY

Alexandria – $3,087

Kahoka – $40,348

Luray – $1,992

Revere – $1,534

Wayland – $10,349

Wyaconda – $4,408

KNOX COUNTY

Baring – $2,563

Edina – $22,834

Hurdland – $3,165

Knox City – $4,194

Newark – $1,825

Novelty – $2,699

LEWIS COUNTY

Canton – $46,153

Ewing – $8,854

La Belle – $12,815

La Grange – $18,077

Lewistown – $10,368

Monticello – $1,903

SCOTLAND COUNTY

Arbela – $796

Gorin – $1,767

Granger – $660

Memphis – $35,377

Rutledge – $2,116

MoDOT officials have indicated initial funding projections for state planning purposes are anticipating up to a 25% utilization of the rebate option, which would lower the revenue numbers for the local communities. South Carolina, the first state to implement the fuel tax model offering a rebate system, has reported initial refunds at approximately 15%.