The Missouri Senate has approved a bill that is intended to reduce the
cost of roadwork throughout the state.
Senators voted 25-6 to advance a bill that would exempt contractors
from paying sales tax on materials bought for highway projects. The bill –
SB629 – now heads to the House for further consideration.
The bill’s sponsor, Sen. Chuck Gross, R-St. Charles, said if
contractors are freed from paying the tax, the Missouri Department of
Transportation could earmark more money for other uses.
The change in state law could be worth $34 million for the
transportation department in the first year, The
Associated Press reported. That money could not be used for non-road
needs, including mass transit, railroads or port improvements.
Eliminating the tax is expected to cost the state about $18 million in
general revenue in the first year.