COLUMBIA, S.C. (AP) - Senators advanced a bill Tuesday that would eventually raise nearly $800 million more annually for South Carolina’s roadways, though arguments that killed previous road-funding proposals are expected to resurface during the floor debate.
The Senate Finance Committee voted 14-7 on a proposal that would increase the state’s gas tax by 12 cents over the next six years, to 28 cents per gallon. That’s two pennies more than the road-funding plan approved by the House earlier this month, which would eventually generate $530 million yearly, according to an updated estimate.
Sen. Tom Davis, the chief blocker of previous plans, called the latest version “the worst of all possible outcomes,” as a straight-up tax increase without reform.
People were interested in these podcasts
Davis, R-Beaufort, wants to eliminate the commission that oversees the Department of Transportation and give the governor’s office full oversight. If senators don’t insert restructuring on the floor, he said, “I’m going to do my best to kill it.”
Similarly, Democrats refuse to accept a road-funding bill that also cuts income taxes.
“I promise you, if you put the taxes in there, it’s dead,” Sen. John Matthews, D-Bowman, told Republicans who plan to push those amendments on the floor.
Former Gov. Nikki Haley repeatedly vowed to veto any bill with a gas tax increase unless it also slashed income taxes and eliminated the DOT commission. Gov. Henry McMaster, who ascended to the office in January, opposes increasing state gas taxes, unchanged since 1987. But he’s stopped short of a veto threat.
Despite senators drawing distinct lines, Senate President Pro Tem Hugh Leatherman said compromise is still possible.
“At the end of the day, I’m confident we’ll pass something” that provides a long-term, sustainable funding stream to the Department of Transportation, said Leatherman, R-Florence.
Department Director Christy Hall has said an additional $28 billion is needed over the next 25 years to bring the state’s existing highway system - the nation’s fourth-largest with 41,400 miles of roadway - up to good condition. More than half of roadway miles statewide have deteriorated to the point of needing to be completely reconstructed, drastically increasing costs, she said.
Beyond the 2 additional cents per-gallon, the Senate plan raises more than the House by increasing the sales tax cap on vehicles from the current $300 to $600, instead of $500. It also charges more for a newly created fee. When fully phased in, people moving to South Carolina would pay a one-time fee of $600 instead of $250 to register a vehicle bought outside the state.
The Senate Finance proposal also ties the state gas tax to inflation starting in 2023. However, any increase would be capped at 2 percent, and the plan specifies that South Carolina’s gas tax must stay below taxes in neighboring Georgia and North Carolina.
Both the House and Senate Finance plans also increase drivers’ biennial vehicle registration fee by $16, create a new fee for hybrid vehicles and impose a new tax on commercial trucks that are licensed with out-of-state fleets.
Please read our comment policy before commenting.