Push for tobacco tax takes new road

The association representing Missouri convenience stores and petroleum is making a first-time initiative petition push for higher taxes on cigarettes and tobacco, and it now says it wants the money to go to transportation.

The Missouri Petroleum Marketers & Convenience Store Association (MPCA) and its allies previously had filed a petition with the Secretary of State's office that would let Missouri voters next November decide whether to increase cigarette taxes by 135 percent and other tobacco products by 50 percent.

For statutory changes to be brought before Missouri voters in the November 2016 election, signatures must be obtained from registered voters equal to 5 percent of the total votes cast in the 2012 governor's election from six of the state's eight congressional districts.

MPCA currently is collecting signatures, and expects to have enough to qualify as a ballot issue.

Signatures on behalf of all initiative petitions for the 2016 ballot are due to the secretary of state's office by 5 p.m. May 8.

MPCA's proposal is among a handful of other initiative petitions that would hike tobacco taxes.

Initially, the association wanted the money to go into the state's general revenue fund, but it is now pushing for a similar proposal that would fund transportation infrastructure.

"Once fully implemented, this proposal will generate nearly $100 million per year in new revenue that will be used to repair and replace Missouri's dangerous roads and bridges," said Ron Leone, executive director of the association. "If passed, this proposal helps MODOT avoid a fiscal crisis and guarantees Missouri continues to receive $4 in federal funds for every $1 the state spends on highways."

The association has opposed tobacco increase proposals in 2002, 2006 and 2012. "But we've always supported a fair and reasonable tax increase, and decided to take control of our own fate," Leone said.

Those prior proposals have been "outrageous and unfair," Leone said, adding he believes voters will approve their initiative petition proposal.

MoDOT hasn't taken a public stance yet on the measure, and is crafting its own proposal for more funding.

Leone said $100 million won't solve MoDOT's transportation funding problem, but "it's a good start.

"They want to hit a home run, but are going to have to take some singles," he said.

Even if MoDOT supports the proposal, it will have to support other funding options, he said.

Specifically, the proposal would increase taxes on:

• Cigarettes by 135 percent (23¢ per pack), phased-in as follows: 13¢ per pack on Jan. 1, 2017; 5¢ per pack on Jan. 1, 2019; and 5¢ per pack on Jan. 1, 2021. Once fully phased-in, the total tax will be 40¢ per pack - 17¢ per pack existing tax, plus 23¢ per pack through this proposal.

• Other tobacco by 50 percent, effective Jan. 1, 2017, with no phase-in.