Missouri House Bill HB2813

Missouri 2022 Regular Session

• Introduced: 2/28/22
• Refer: 3/10/22

Caption

Creates a one-time six-month tax holiday on motor fuel sales

Impact

If enacted, HB 2813 would have significant implications for state revenues generated from taxes on motor fuel. The tax holiday is expected to decrease state tax income but is justified by supporters as an investment in economic stability during challenging fiscal periods. This measure could set a precedent for similar interventions in the future, depending on economic conditions. However, the potential revenue loss remains a point of concern among fiscal conservatives, highlighting the ongoing debate about balancing tax relief with maintaining essential state funding.

Summary

House Bill 2813 proposes a one-time six-month tax holiday on motor fuel sales, aiming to alleviate financial burdens on consumers during times of high fuel prices. The bill seeks to provide temporary relief by suspending the state sales tax on motor fuel, which proponents believe will offer much-needed economic support to families and businesses alike. The initiative is part of a broader effort to mitigate the effects of rising gas prices on the state's economy, thereby enhancing consumer purchasing power and benefiting local economies.

Contention

The discussions surrounding HB 2813 reveal a divide among legislators regarding its implementation. Supporters argue that the bill supports families, particularly during rising fuel costs, while critics voice concerns over the long-term fiscal implications for the state. Detractors suggest that a temporary tax holiday could undermine budgets and question whether such measures are sustainable or merely a short-term fix. Additionally, there are discussions around the fairness of the tax holiday's benefits distribution across different economic demographics, making it one of several contentious aspects of the bill.