What Impact Will the Fuel Tax Defeat Have on Missouri Businesses?
With the elections past, the fuel tax that was on the ballot in the past election cycle has failed. But though we know that there is always an effect of taxes on business, what can we expect in terms of the impact that the failure of the fuel tax will have on businesses in Missouri? Here's a quick overview to help you get started.
With the fuel tax defeated, state officials are working hard to try to find areas where they can gain revenue to prop up the perpetually short budget of the Missouri Department of Transportation. When Proposition D failed to implement a fuel tax that would help supplement road improvements and repairs in the state, it left the agency scrambling to find funding to make future planned projects work. But without the fuel tax, these repairs and improvements may be difficult to impossible.
One possibility is that the Department of Revenue could increase the cost of vehicle registration. Given the increased cost for registration based on horsepower, this would have businesses that depend on heavy machinery and larger trucks, such as construction, trucking and similar industries, bear a much higher cost. Some would argue that because these vehicles have a larger impact on the roadways due to their weight, that they should bear the higher cost of operation.
However, with President Trump's push for funding infrastructure improvements across the country as part of his plan for economic growth, there's a possibility that some amount of funding may come from the federal government. This would work well for interstates and federal highways, but would still leave state, county and city roads in need of funds for repairs.
Though it's difficult to determine the overall effect of taxes on businesses, the defeat of the fuel tax during the last election may have some far-reaching impacts in areas we may not expect yet. Is your business dependent on transportation and highways to keep operating effectively? If it is, you need a strategy to deal with the potential impact of the fuel tax's defeat. AccountRely has a wide range of business professionals waiting to help. Please feel free to reach out today to get connected to the right professional for your business.