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Thursday, April 5, 2007

TRANSPORTATION CHAIR PROPOSES $4 BILLION TAX HIKE

House Transportation Committee Chairman Neal St. Onge on March 29 proposed a $4 billion tax increase to pay for rebuilding Interstate 70 and other highway projects throughout the state, along with upgrading river ports and improving public transportation. St. Onge, R-Ballwin, doesn’t expect his proposal to pass this year but hopes to build support for placing it on the statewide ballot in 2008, according to The Associated Press.

St. Onge’s plan calls for increasing car license plate fees by $15 and commercial truck plate fees by $20. It would also boost the state fuel tax by 4 cents per gallon, impose a 2 percent sales tax on fuel and increase the general state sales tax by half a percent. The taxes would expire after six years.

Earlier this year, Senate Transportation Committee Chairman Bill Stouffer, R-Napton, proposed a 1 percent general state sales tax for rebuilding Interstates 70 and 44. That tax would generate as estimated $7.2 billion and expire after 10 years. The bills are HB 1237 and SB 310.

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