You’ll pay more at the gas pumps in South Carolina soon. Here’s why
Drivers filling their gas tanks in South Carolina soon will pay more at the pumps.
Beginning July 1, there will be a 2 cent hike on the cost of fuel, according to the South Carolina Department of Revenue.
It is the fourth consecutive year there will be an increase in the South Carolina Motor Fuel User Fee, raising the overall tax to 24 cents per gallon, Department of Revenue officials said in a news release.
The rate hike will be in place for a year, until it rises another 2 cents in 2021. The fee will increase to 28 cents per gallon in July 2022, according to the release.
The money generated by the gas fee is used to support road, bridge, and infrastructure construction, officials said.
Since the fee increases were passed by South Carolina lawmakers in 2017, about $364 million has been added to the state’s Infrastructure Maintenance Trust Fund, according to the release. That fund is used for the South Carolina Department of Transportation’s 10-year plan, which is targeted for more than $1.3 billion in improvements and repairs.
Lawmakers said the gas tax would lead to the largest investment in state history to fix South Carolina’s pothole-riddled roads.
Taxpayers in South Carolina are eligible to claim a credit on their state income tax returns “to help offset increases in the Motor Fuel User Fee,” officials said.
To earn it, taxpayers must save receipts — starting Jan. 1 — when buying gas or paying for car maintenance, such as new tires or oil changes for up to two vehicles.
At this point in the 2020 tax season, the credit has been claimed on 65,638 returns, and taxpayers are getting an average of $42.41, according to the release. Officials said that is nearly double the average credit from 2019.
So far this year, $2,783,770 of the available $65 million credit for the 2020 tax season has been claimed, according to the Department of Revenue.
This story was originally published June 3, 2020 at 12:08 PM.
