Gov. Parson signs Missouri’s new gas tax increase into law
KANSAS CITY, Mo. — Missouri’s gas tax is increasing for the first time in 25 years just as gas prices rebound from low demand during the pandemic.
On Tuesday, Gov. Mike Parson signed the hike into law, which will raise money for highway and bridge repairs.
This gas tax will add 12.5 cents per gallon over five years. The first hike will happen in October. However, Parson said people can get a refund on that tax if they don’t want to pay it.
“So we came up with a solution that I believe offers the best for both people. If people want to make an investment in transportation, they can. If those want to get a refund, they can as well,” Sen. Dave Schatz, R-Sullivan, said.
“Missourians can get their money back if they so choose to through a very simple process,” Rep. Becky Ruth, R-Festus, said.
But how simple is that process really?
You’ll need to supply to the Missouri Department of Revenue with the following:
- Vehicle identification number of the car that used the gas
- Dates you bought the gas
- Your name and address
- Name and address of the gas seller
- Gallons purchased in the fiscal year
- Separately, gallons purchased and taxed under Missouri’s motor fuel tax
You’re also required to keep your gas receipts for three years in case of an audit. It’s important to note this process will only refund the new gas tax. Therefore, at first, the refund will only apply to 2.5 cents per gallon.
The gas tax will increase every July until 2026 — topping off at 29.5 cents per gallon.
People who live out of state can also apply for a refund.
Pursuing the refund might not be worth it to some drivers.
At Gateway Classic Car of Kansas City, some people might dismiss their 150-some cars as gas guzzlers. But sales consultant Lucas Mynatt said vehicles with a V8 can surprise you.
“I don’t really think too many people are really going to think these are Priuses,” said Mynatt, who grew up watching his grandpa restore classic cars and now sells them.
With some cars priced at over $50,000, those buying from Gateway Classic Car might not be worried about some extra change at the gas station.
“No, I mean these cars are pretty premium. A 1970 Dodge Challenger is kind of the cream of the crop when it comes to muscle cars,” Mynatt said.
“These cars are wants, not needs. We’re basically selling dreams here,” he added.
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