Some Basic Facts about Proposition B The (Defeated) Transportation Tax Proposal on the August 6, 2002 Ballot
Proposition B was the largest tax increase ever voted on by Missourians. It would have raised the state gasoline tax by 4 cents per gallon to 21 cents, and raised the state sales tax by 1/2 cent to a total of 4.725 per dollar. This tax increase would have cost Missourians as much as $550,000,000 each year.
(Fiscal Note for Senate Bill 915 - 2002 State Legislature)
Proposition B would have added at least $150 a year in taxes for a family of four with two drivers. (according to Mo. Dept. of Transportation)
But, the effect of this tax increase would probably have been much more. Drivers of trucks or SUVs and people with long commutes could pay $150 in
new gas taxes alone. Prop B's sales tax increase equaled instant inflation in the cost of every purchase, including almost all basic necessities.
Proposition B's sales tax increase would have caused the total sales tax (state & local) to reach 8.725% in some Missouri cities. Sales tax would have increased to more than 8 cents per dollar in many areas, and would have been above 7 1/2 cents per dollar for the majority of Missourians. The sales tax on a $20,000 car in St. Louis would have cost $1,600 before the owner could buy a license plate. Ê[See examples of the increased sales tax rates for various cities at end
of this page.]
Proposition B would have raised the total state and federal gasoline tax in Missouri to 39.4 cents per gallon. If a gallon of gas costs $1.20, one third
of the cost would be taxes.
(Mo. Department of Revenue)
Proposition B's proposed taxes were a regressive tax increase on those least able to pay. Moderate and low income families pay a greater portion of their income in sales and gasoline taxes than do wealthy families. The
poorest families pay four times as much of their income on sales taxes
than the wealthy.
(Study: Missourians and the Taxes They Pay - March, 1996 by Univ. Mo.-St. Louis professor Donald Phares)
Proposition B proposed to raise taxes at a time when Missourians are struggling economically. Sales tax receipts were down, 100,000 Missourians
had been added to the food stamp rolls over the past two years, and unemployment has gone up.
(Mo. Departments of Revenue and Social Services)
Proposition B had no guarantees on how or where the new "state transportation money" would be spent. These tax dollars could have paid for new airport runways for private jets while one third or more of roads remain below standard.
(Jefferson City News Tribune 6/2/02)
The Mo. Highway and Transportation Commission announced June 25 that it plans to spend most of the Prop B money for projects promised over 10 years ago when the 1992 gas tax increase was enacted (without voter approval). But, again -- nothng is for sure.
Proposition B contained no increase in fees or other charges to trucks or other heavy vehicles that cause much of the damage to our roads and highways.
(Senate Bill 915, 2002 State Legislature)
Some Examples of the sales tax increase (derived from Mo.
Department
of Revenue sales tax charts):
St. Louis City sales tax will increase to 8.116
cents per dollar;
Kansas City (Jackson county) - to 7.225 cents;
Kansas City (Platte & Cass counties) -
to 7.475 cents;
Kansas City (Clay county) - to 7.375 cents;
Columbia - to 7.725 cents;
Bowling Green - to 8.475 cents;
Franklin & New Franklin - to 8.725 cents;
Brentwood, Des Peres, Kirkwood, Richmond Hts.,
Crestwood
-
to 7.825 cents;
Buffalo - to 8.275 cents;
Adrian (Bates county) - to 8.35 cents;
Hayti - to 8.225 cents;
Glasgow - to 8.475 cents;
Canton - to 8.225 cents;
Wentzville - to 8.325 cents;
Warrenton - to 8.475 cents;
Noel - to 8.35 cents;
Moberly - to 7.725 cents;
Kirksville - to 7.475 cents;
Potosi - to 8.225 cents;
St. Joseph - to 7.975 cents;
Warrensburg - to 7.725 cents;
Joplin (Jasper couny) - to 7.2 cents;
Joplin (Newton county) - to 7.35 cents;
Springfield - to 6.85 cents.
