SC politics

Senate panel passes plan to raise money for roads

A state Senate panel Wednesday passed a plan to raise money to repair the state’s roads, including a 12-cent-a-gallon increase over three years to the state’s current 16.75-cent gas tax.

The plan would raise roughly $800 million a year, said Sen. Ray Cleary, R-Georgetown.

The state Transportation Department, has estimated the state needs an added $1.5 billion a year to repair, maintain and expand the state’s roads.

Cleary’s proposal also would:

▪  Increase fees for 10-year driver’s licenses to $50 from $25

▪  Levy a $60 fee on hybrid vehicles every two years and a $120 fee on electric vehicles

▪  Increase the cap on the state’s sales tax on vehicles to $600 from $300

Cleary said the fee on hybrid and electric vehicles addresses a fairness issue. Those vehicles use the state’s roads but do not pay as much in gas taxes, he said.

Gov. Nikki Haley said Tuesday she would veto the Senate roads proposal, saying it would raise taxes too much and does not include a tax cut she wants. Haley also wants complete control over the state Transportation Department. That agency’s commission now is dominated by legislative appointees.

“If all we hear from her is, ‘It’s my way or no highway,” how do you compromise?” Cleary asked Wednesday.

Sen. Kevin Bryant, R-Anderson, placed an objection on the bill, which could hold it up. Cleary said the bill will have to be given priority status to be debated on the Senate floor.

Meanwhile, the S.C. House Ways and Means Committee will consider Thursday its roads repair proposal. That proposal, which could be married with a small income tax cut, includes increasing gas taxes by the equivalent of 10 cents a gallon and hiking the cap on vehicle sales taxes to $500.