12-cent-a-gallon SC gas tax hike gets key approval

S.C. drivers soon could pay more at the pump to raise money to repair the state’s crumbling roads.

A South Carolina road repair plan would raise the state’s gas tax by 2 cents a gallon per year for the next six years, if an agreement reached Friday by key S.C. House members and senators becomes law.

The tax hike would equal roughly $1.40 per week for a driver who travels 15,000 miles and gets 25 miles per gallon.

If the proposal becomes law, the state’s 16.75-cent-a-gallon gas tax would increase by 12 cents over six years.

The plan is expected to raise roughly $600 million to repair the state’s roads and bridges when fully phased in.

“It’s a remarkable day that the Senate and House have come together after three years of debate to begin the process of healing South Carolina roads,” said S.C. House Majority Leader Gary Simrill, R-York.

A compromise panel of three representatives and three senators negotiated the deal between the S.C. House and Senate versions of the roads plan. The deal goes next to the chambers for approval.

The panel also:

▪  Increased the 5 percent car sales tax cap to $500 from $300

▪  Created a one-time $250 fee when a new S.C. resident registers a vehicle in South Carolina

▪  Created tax rebates to offset S.C. residents paying a higher gas tax and driving fees, tuition tax credits and other tax cuts. Initial estimates for how much those tax cuts will cost were not available Friday.

▪  Created a $60 fee every two years for hybrid vehicle drivers and a $120 fee every two years for electric vehicle drivers

▪  Added a ninth at-large member to a panel that oversees the S.C. Department of Transportation. They also agreed to give the governor – who would appoint all nine commissioners – the ability to remove any commissioner for any reason.

The S.C. House and Senate must pass a final compromise plan with two-thirds support to withstand a veto by Gov. Henry McMaster.

The Richland Republican has said he opposes raising the state’s 16.75-cents-a-gallon gas tax, the second lowest in the nation.

State Sen. Vincent Sheheen, D-Kershaw, said he is optimistic the plan could have the needed support to withstand a veto.

“Our elected officials want a plan to fix our roads,” he said, adding, “In South Carolina right now, we’ve been paying for cruddy roads. We’re about to pay for good roads.”

This story was originally published May 5, 2017 at 10:37 AM with the headline "12-cent-a-gallon SC gas tax hike gets key approval."