What Does the Missouri Gas Tax Rebate Mean for You?
Every time you fill your vehicle with gas, you pay a gas tax rate. The money from this tax rate typically goes towards fixing roads and bridges within your state. In July of this year, Missouri Governor Mike Parson signed a state gas tax increase. Said increase went into effect as of October 1, 2021, but what does the Missouri gas tax rebate mean for you? Read our blog to find out!
How Much Is the Tax Increase?
This raise is the first gas tax increase in the state of Missouri since 1992. However, it may have been a long time coming. Missouri holds one of the lowest gas tax rates in the country, at just 17 cents per gallon. Since October 1, the state’s residents have been paying an additional 2.5 cents per gallon of gas. The tax will increase yearly between now and 2025. Once done, the gas tax rate will sit at 29.5 cents per gallon. That might not seem like a lot, but these taxes could raise about $500 million for the state of Missouri.
Why The Increase in Taxes?
The state of Missouri plans to split the money from these taxes between the Missouri Department of Transportation (MoDOT) and local governments to help cover the costs of road and bridge repairs. Yet, this may not be enough for all the maintenance that needs to be done. The state of Missouri faces a $745 million gap for high-priority road and bridgework. Unfortunately, rising material and equipment costs have reduced the purchasing power of the MoDOT to under 50% of what it used to be in the mid-1990s.
What is the Rebate?
Missouri is offering a rebate for those who do not wish to take part in this tax raise. This rebate is available to both residents and businesses within the state of Missouri. Gain access to the rebate form here. Anyone interested in applying must track individual purchases starting October 1, 2021, through June 30, 2022 (to the end of the fiscal year). The ultimate consumer or retailer can then apply for refunds starting July 1, 2022, to September 30, 2022 (the first three months of the new fiscal year). However, tracking how much gas you’re buying is just the start of this process.
How Do I Get My Rebate?
To fill out the rebate form, you will need some information:
- The vehicle identification number of the vehicle the fuel was delivered to
- The date of sale
- The names and addresses of the purchaser and seller
- The number of gallons purchased
- The number of gallons purchased and charged Missouri fuel tax as a separate item
You also need to maintain purchase records that include invoices, original sales receipts marked paid by the seller, bills of lading, or other pertinent records, for up to three years as the Department of Revenue has the right to carry out an inspection of your documents within that period. Remember to sign and date the form. Claims unsigned will be returned. If you have any questions about completing the form, you can call (573) 751-7671 or email email@example.com.
What Will You Do?
So, will you be participating in the rebate program? Several state reps have announced their distaste for the confusing paperwork needed to avoid the additional taxes. In contrast, others praise the fact that the option to participate is there to begin with. Ultimately, it’s up to you to decide what to do.
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