Gasoline tax rate climbs to seven cents in 1959

In 1925, Missouri’s first gasoline tax was two cents a gallon. The following year it increased to three cents a gallon. By 1959, the tax rate was seven cents; on a 10 gallon fill, the tax would be 70 cents or equivalent to a 30% sales tax on gasoline.

The average gasoline tax in Missouri was $56 a year for each vehicle. In addition, some of the larger cities had many municipalities that levied a tax which brought the total up to 45%.

By Jan. 16, 1959, the amount of taxes on gasoline was approximately $4 million – as much in 16 days as Missouri motorists use to pay in gasoline taxes in a whole year. It was also estimated the combined car owners would pay a total of approximately $97 million in gas taxes in the same year. Besides the millions spent for gas tax, another $40 million dollars was taken from Missouri car operators for license fees which was paid to the Missouri Highway Department.

The value of the dollar was continually shrinking in terms of buying power. It now took in $2.05 to buy what could have been bought for $1 in 1940. A savings bond purchased for $75 in 1947 and was to mature in 10 years and be worth $100 in 1947 values, but not at the 1958 values when the same goods could be purchased for $77. At the latter date, a person could buy a pair of nylon stockings with 37 minutes of labor, a pound of round steak with 38 minutes, a house dress for 129 minutes, and a man’s suit for approximately 34 hours.