Road tax to end earlier than expected
On Monday, the U.S. Highway 36 – Interstate 72 Corridor Transportation Development District announced the termination of its half-cent sales tax, effective August 1, 2017.
The sales tax was established on January 1, 2006 for a period of up to 15 years to support paying for a 52-mile expansion project of U.S. Highway 36 from eight miles west of Hannibal to Macon, Mo.
The District’s Board of Directors authorized the repeal of the sales tax at a special meeting held in March in Shelbina, Mo.
“On behalf of the District’s Board of Directors and everyone else that has been involved in this 52-mile project, we are thrilled that we can repeal this sales tax some three-and-a-half years early. We want to thank the voters of the four-county district for supporting this safety project and having the faith in the Board to complete this project on time and ahead of schedule” said Larry B. Craig, Executive Director of the District.
Craig continued, “Furthermore, it is my pleasure to announce on behalf of the District that as of July 27th, 2017 the District has made its final two installments totaling over $6.5 million to complete our financial obligation to the Missouri Transportation Finance Corporation’s loan of $34,299,339.63 in support of this project. We always said from the beginning that when we had enough funds to pay back our loan and to meet our obligations, we would repeal the tax and abolish the District. The action taken by the District’s Board of Directors at its March 16 meeting is a fulfillment of that promise.”
The tax is ending nearly three-and-a-half years earlier than the 15-year period approved by the voters.
It is anticipated that the district will repay the Missouri Transportation Finance Corporation loan before the end of 2017. After that, the District’s Board of Directors will seek voter approval to abolish the district, which is expected could occur in 2018.