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Bill Summary · HB 2156

Overview

Missouri House Bill 2156 (2026) proposes tying motor fuel tax rate changes to the Department of Transportation’s (MoDOT) expenditures, by requiring annual reporting on internal expenditures and allowing automatic tax rate adjustments based on a defined threshold. The core idea is to create a responsive mechanism: if MoDOT’s internal expenditures exceed 20% of its total expenditures, the motor fuel tax would be reduced by up to 0.50 cents per gallon in the following fiscal year (with a hard floor of reducing no more than 0.30 dollars per gallon below the August 28, 2026 rate). Conversely, if internal expenditures drop below 20%, the tax could be increased by up to 0.50 cents per gallon in the following year, up to the August 28, 2026 rate.

Purpose and Intent

  • Establish a linkage between MoDOT’s financial management (specifically, internal vs. total expenditures) and the state motor fuel tax rate.
  • Promote transparency and accountability by requiring MoDOT to publish detailed expenditure information in its annual report.
  • Introduce automatic, rules-based adjustments to the motor fuel tax rate based on MoDOT’s internal expenditure share.

Key Provisions

  • Effective reporting requirement:
    • MoDOT must submit an annual written report to the Governor and Lieutenant Governor by December 31, including:
    • A comprehensive financial report for the preceding state fiscal year, with an independent CPA audit.
    • The department’s current Citizen’s Guide to Transportation Funding.
    • The department’s current Financial Snapshot (external vs. internal expenditures).
    • MoDOT Results: Accountability. Innovation. Efficiency.
    • The report must be posted on MoDOT’s website for access by General Assembly members.
  • Definition:
    • Section 142.805 defines “internal expenditures” as funds MoDOT spends on internal functions (e.g., salaries, post-employment benefits, administrative costs, program distributions to other state entities and universities).
  • Automatic motor fuel tax adjustments:
    • If MoDOT’s internal expenditures exceed 20% of total expenditures (per the annual report), the motor fuel tax rate under subdivision (1) of subsection 1 of section 142.803 is reduced by 0.50 cents per gallon for the following fiscal year.
    • The reduction cannot drop the rate by more than 1.50 cents per gallon below the rate in effect as of August 28, 2026.
    • If, in a subsequent fiscal year, internal expenditures fall below 20%, the tax rate can be increased by 0.50 cents per gallon for the following year, up to the total rate in effect as of August 28, 2026 (whichever is less).
  • Rules and regulatory authority:
    • The Department of Revenue, in consultation with MoDOT, may promulgate necessary rules to administer the section.
    • Rules must comply with Missouri’s administrative rulemaking laws (Chapter 536). The provision is nonseverable.
  • Combined governance changes:
    • The bill repeals Section 21.795 and enacts two new sections (21.795 and 142.805) creating a permanent Joint Committee on Transportation Oversight with specified membership, meeting requirements, and authority to review MoDOT reporting (but not to modify projects or priorities). The committee can make recommendations, which the department/commission must report back on.
  • Specialty license plates:
    • The Joint Committee on Transportation Oversight also reviews specialty plate applications and must approve or deny them based on specified criteria.

Who Would Be Affected

  • MoDOT: Must prepare and publish enhanced annual financial and performance reports; its internal expenditure definition and expenditure reporting are central to the tax adjustments.
  • Department of Revenue: Authorized to promulgate rules implementing the tax-adjustment mechanism.
  • State taxpayers and motorists: Motor fuel tax rates could fluctuate annually within the defined limits.
  • State government and transportation agencies: Increased oversight via the Joint Committee on Transportation Oversight.

Procedural and Timeline Aspects

  • Annual cycle:
    • MoDOT’s internal/external expenditure data are used to determine the following fiscal year's tax rate changes.
    • December 31: MoDOT annual report deadline (for the preceding fiscal year).
    • February 15: Joint Committee on Transportation Oversight must hold its annual meeting to review the MoDOT report (no project/priority modification authority; may issue recommendations).
    • The committee also convenes two additional meetings per year to discuss transportation plans, efficiencies, and revenue/expenditure status, and may call special meetings with ten days’ notice.
  • Effective statutory framework:
    • Tax rate adjustments are constrained: reductions up to 0.50 cents per gallon, not exceeding 1.50 cents total below the August 28, 2026 rate; increases up to 0.50 cents per gallon, up to the August 28, 2026 rate (whichever is less).
    • Rulemaking authority is granted to implement the mechanism, with adherence to Chapter 536.

Potential Impacts to Consider

  • Financial volatility for motorists due to possible annual rate changes within the stated limits.
  • Incentives for MoDOT to manage internal expenditures relative to total expenditures.
  • Increased legislative oversight of transportation funding and reporting through the new Joint Committee on Transportation Oversight.
  • Administrative costs associated with enhanced reporting and rulemaking.

Compiled from official sources — confirm details with the bill’s official record.

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