Senate Drops Tax for Highway Contractors
Department of Transportation Director Pete Rahn urged lawmakers to earmark sales taxes paid by highway contractors to the agency for railroads, airports and public transit. But the Senate legislation instead simply does away with the sales tax. Senator Chuck Gross says the agency will benefit if contractors don't pay the tax, as road project costs should drop. The measure is estimated to save MO-DOT $34 million in the first year. If the measure becomes law, the tax would go away in mid-2007. The House will now consider the bill.