JEFFERSON CITY — Missouri’s fuel tax increases again on Friday, but in Illinois, a planned hike is on hold for six months.
Missouri’s tax will go up another 2.5 cents, the second such increase since last year, bringing the state’s total fuel tax to 22 cents per gallon.
Meanwhile, Illinois’ 39-cent fuel tax will stay flat until January as part of a tax relief package signed by Gov. J.B. Pritzker.
Missouri taxes are increasing as consumers continue to face pressure at the gas pump, with average retail prices at Missouri stations peaking at about $4.70 per gallon in June before declining slightly to close out the month, according to a GasBuddy analysis.
David Mitchell, a professor of economics and director of Missouri State University’s Bureau of Economic Research, said stations may try to pass the tax increase onto consumers in the short term.
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“They might try to sneak it in now because prices are high and they’re volatile, and they (consumers) might not notice a 2-3 cent increase,” Mitchell said. “But over the long term ... producers will share more of that tax burden.
“Just because you place a tax of $2 on something, or 2.5 cents on something, doesn’t mean that the price will go up by that much,” he said. “Some of that tax can be shifted onto producers and they’ll take it actually in the form of less money that they get.”
To pass the tax increase in May 2021, when prices stood at about $2.75 per gallon, Missouri lawmakers included a loophole allowing motorists to claim a rebate on new fuel taxes paid.
As of Friday, that means drivers may get a nickel back for every gallon they purchase over the next year, if they fill out a form at the start of the fiscal year that begins July 1, 2023.
The 2021 law, designed to raise more money for road projects, requires motorists to save receipts for three years.
Motorists will also be able to claim a refund for the initial 2.5-cent increase in place between Oct. 1, 2021, and Thursday.
To claim the refund, taxpayers must fill out a Form 4923-H, which asks for vehicle identification numbers, as well as information for each transaction, including seller name, address, date of purchase and number of gallons purchased.
Claims this year must be postmarked between July 1 and Sept. 30, according to the form.
The average driver likely won’t see a windfall from the rebate.
Someone who purchased 400 gallons of fuel over the last nine months would receive $10 back if they file for a refund, minus any postage paid.
Anne Marie Moy, spokeswoman for the Department of Revenue, said officials estimated they had so far collected $57 million from the 2.5-cent fuel tax increase that took effect Oct. 1.
She said the estimate only covers about six months of the nine-month period due to taxes that have yet to be reported.
Meanwhile, in Illinois, an inflationary increase in that state’s gas tax — about 2.2 cents per gallon — will be suspended for six months as part of the budget Pritzker signed in April, Capitol News Illinois reported.
Illinois lawmakers and Pritzker doubled the state’s gas tax three years ago from 19 cents to 38 cents per gallon to fund road improvements. The tax had stayed flat for three decades, and officials tied future increases to inflation.
In Missouri, which also hadn’t adjusted its fuel tax to keep up with inflation, lawmakers signed off on a 12.5-cent increase to the 17-cent tax, to be phased in over five years.
Posted at 2 p.m. Thursday, June 30.
