South Carolina House approves gas tax increase

Updated Mar 8, 2017

South Carolina WelcomeThe South Carolina House, in a 97-18 vote, has approved H. 3516, legislation that would increase the state’s gas tax by 2 cents per gallon a year for five years.

At the end of five years, the state gas tax would be 26 cents per gallon, compared to the current rate of 16 cents per gallon.

The bill estimates in the first fiscal year funding for transportation projects would increase by $68.86 million.

Other revenue collection mechanisms as part of the bill include:

  • A biennial registration fee increase of $16
  • An infrastructure maintenance fee added to first time vehicle registration: 5 percent of sales price up to $500
  • A biennial road use fee for alternative vehicles of $120; $60 for hybrid vehicles
  • A road use fee on all large commercial motor vehicles, starting Jan. 1, 2019 (similar to the current motor carrier property tax)
  • A one time fee of $87 to register a trailer or semi-trailer (commercial)

The bill now moves on to the Senate Committee on Finance.