JEFFERSON CITY, Mo. — Republican bills in the Missouri Senate show a difference in opinion between the party's moderates and its more conservative caucus regarding tax increases.
The Senate on Tuesday tabled a bill that would have raised Missouri's gas tax of 17 cents per gallon for the first time in two decades. The proposal would increase the tax by 2.5 cents per gallon in October and would increase to 15 cents per gallon over five years.
That came a day after the Senate rejected a bill that gradually would have eliminated the personal property tax on items such as cars, boats and machinery.
Senate Bill No. 24 was defeated Monday. The bill also would have capped local taxing jurisdictions from imposing rates beyond 4.5% or 9% for city and county taxes combined among a range of other changes.
Opponents raised concern that eliminating the personal property tax would have harmed local governments, which use the revenue to fund services such as police.
Sen. Bill Eigel, a Weldon Springs Republican and who sponsored the bill, said the lost revenue could be replaced with inflation-driven increases to real estate taxes. But only 13 Republican Senators voted for the measure.
Eigel and others responded Tuesday by stalling debate on the gas tax bill, which has been pushed by Republican Senate leaders.
"As a conservative I appreciate a low tax rate," said Dave Schatz, a Sullivan Republican and the Senate President Pro Tem. "What I do not appreciate is inadequate funding of the fundamental responsibilities of government."
Also Tuesday, the House gave initial approval to a bill that would tax out-of-state purchases. It would need to pass another House vote before going to the Senate. Missouri is one of only two states in the country that doesn't tax such purchases.
Supporters say it would even the playing field for in-state retailers, but some Republicans have opposed any hike in taxes without a corresponding decrease elsewhere in state revenue.
