WeVote
Log In

Bill

Bill

HJR 177

Proposes a constitutional amendment modifying provisions relating to revenue derived from highway users that is deposited into the state road fund

2026 Regular Session Introduced by Don Mayhew

The bill would create a State Road Fund and require highway revenue to be annually appropriated, directing funds to counties, cities, and state road needs per new formulas.

Referred: Emerging Issues(H)
#roadsandhighways #transportation #departmentof
0
WeVote Research Nonpartisan
Bill Summary · HJR 177

Summary of Bill: HJR 177 (2026) – Missouri

Purpose and intent

HJR 177 proposes a constitutional amendment to modify how revenue derived from highway users is deposited and spent, establishing the State Road Fund as subject to General Assembly appropriation (instead of being “standing appropriated”). The measure aims to refine distribution of fuel taxes and related highway revenues across counties, cities, and the state road system, and to set priorities for funding through the statewide transportation framework.

Key provisions and changes

  • Repeal and replacement of Sections 30(a) and 30(b) of Article IV, with two new sections (30(a) and 30(b)) outlining the funding structure and uses.

  • Section 30(a) – Fuel tax distributions

    • Taxes based on fuel used for highway motor vehicles will be collected, with refunds for fuel not used for highways.
    • After deductions (including collection costs, refunds, and certain other adjustments), net proceeds are allocated as follows:
    • 10% to the County Aid Road Trust Fund (CARF).
    • An additional 5% (from the difference between 1992 and post-1994 tax rates) to CARF, with 5% of that share allocated to cities not within any county; the remainder distributed to counties based on:
      • County road mileage ratio, and
      • Rural land valuation ratio (with adjustments for incorporated areas and a minimum rural land valuation of $5 million for counties below that threshold).
    • The CARF funds must be used for county roads, bridges, and related maintenance, subject to law; rural five-percent funds cannot be used for equipment, salaries, or capital improvements not tied to roads/bridges. In township counties, funds are controlled by the county commission.
    • 15% of net proceeds go to incorporated cities, towns, and villages for road-related work and debt payments, allocated by population (based on 2010 Census data), with a floor ensuring prior motor fuel tax receipts are preserved for those with existing taxes.
    • 1% of net proceeds go to counties based on agricultural land acreage.
    • All remaining net proceeds go to the State Road Fund (see below) for state purposes.

  • Section 30(b) – State Road Fund and state highway uses

    • Net revenue from highway users (after specified deductions: collection costs, refunds, and certain admin costs) must be deposited in the State Road Fund.
    • The State Road Fund must be used by the Highways and Transportation Commission (HTC) for:
    • Payment of principal and interest on state road bonds.
    • Maintaining a balance to cover bond payments for the next 12 months.
    • Remaining balance used for state highway system purposes, including:
      • Construction, reconstruction, maintenance, and improvement of the state highway system.
      • Reimbursement to counties and other political subdivisions for certain road/bridge work.
      • Planning, locating, relocating, and maintaining highways (including interstates, primary/state highways, bridges, tunnels, etc.), park/connective facilities, and federal-compliant projects.
      • Acquisition of materials, equipment, and staff as needed.
      • Additional purposes per the statewide transportation improvement program (STIP) or successor documents to establish funding priorities.
    • A separate provision ties motor vehicle sales tax allocations (half of such tax proceeds) to various transportation funds (including a specific portion to the State Road Fund) and creates a State Road Bond Fund for certain bond-related uses, with rules on bond issuance and uses of bond proceeds.
    • Post-1980 increases in motor vehicle-related taxes would continue to be allocated to counties, cities, and the State Road Fund as described.
    • Proceeds allocated to the State Road Fund, other transportation funds, or bond funds are exempt from counting toward “total state revenues” or “expense of state government” for fiscal constitution purposes.

Affected entities and beneficiaries

  • Counties, cities, towns, and villages receive a defined share of net highway fuel tax revenues, via the CARF, population-based city shares, and agricultural land-based county shares.
  • The State Road Fund, Highway and Transportation Commission, and state road bond program are directly impacted, with funds explicitly dedicated to bond payments, maintenance, and long-term planning of the state highway system.
  • The amendment would alter the current automatic/standing appropriation status of highway funds, making them subject to annual appropriation by the General Assembly.

Procedural and timeline aspects

  • If approved, the amendment would be submitted to Missouri voters at the next general election after November 1, 2026 (or at a governor-called special election for that purpose).
  • The measure requires voter approval to take effect; upon passage, the described allocations and fund structures would govern future distributions.
  • The text references ongoing alignment with the statewide transportation framework (STIP) for project prioritization.

Notable context

  • The bill is intended to align Missouri’s highway funding with a more explicit constitutional framework, defining fund creation (State Road Fund) and dedicating revenues for bonds and road projects, while ensuring local governments receive prescribed shares.
  • It resembles and builds on prior proposals (e.g., HJR 21, 2025) related to the State Road Fund and highway revenue apportionment.

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

Sign in to ask a question.