South Carolina drivers: the very first 2-cent round of gas tax increase is Saturday, News
South Carolina drivers: the very first 2-cent round of gas tax increase is Saturday
Albert Smith of Hollywood said adding two cents will take a toll on him because of his business Charleston Landscape management. Smith was at the BP Sky Mart on Sam Rittenberg Blvd. Wednesday June 28,2017 the gas is $1.99 a gallon. Leroy Burnell/Staff
Leroy Burnell [email protected]
The hum of engines and passing drivers rush down King Street as North Charleston resident James Conyers fills up his tank at a Shell gas station.
He often checks gas prices to make sure he’s not overpaying, but he doesn’t always notice petite increases on his bill.
Fluctuating fuel costs is something Coyners has learned to tolerate because driving is his main form of transportation.
“If you’ve got a car, it’s not going to matter because you still need to pack up,” he said. “It’s not something you can indeed control. It’s a give-and-take situation. You just have to deal with it if you want to get places.”
But kicking off this weekend, Coyners said he may pay closer attention to how much he’s paying at the pump.
The state’s gas tax will increase by two cents per gallon Saturday in the very first of six, 2-cent bumps scheduled for the the next six years, for twelve cents total more.
Passed by the General Assembly this year, the increases will raise the state gas tax to 28.75 cents per gallon by two thousand twenty one to address the state’s woeful roads.
The current 16.75 cents per gallon tax hasn’t switched since 1987.
The state Department of Transportation expects to collect $149 million in the very first year.
“It’s going to take a while to come back the state of roads and bridges to the state they were in,” said DOT Secretary Christy Hall. “It’s not going to switch overnight, but the public will see incremental switch.”
More than $600 million a year is expected once the utter increase is implemented, according to DOT.
Average drivers could pay an extra $57.39 yearly for gas once the tax is fully implemented, according to state estimates.
Members of the business community and automotive industry welcomed the gas tax increase as a way to improve roadways.
“It’s a responsible increase phased in as extra taxes, but (businesses) understand it’s going to a purpose that needs to be addressed,” said Ted Pitts, president and CEO of the S.C. Chamber of Commerce.
Motor club AAA supported the increase as well.
Rick Todd, president of the S.C. Trucking Association, said the 2-cent bump will have a minimal effect because fuel costs have remained low.
“Two cents shouldn’t to make or break an operation,” he said.
Nationally, drivers this Fourth of July holiday will see the cheapest gas prices since 2005, a GasBuddy report said.
U.S. consumers were paying an average of $Two.23 per gallon at the pump as of Friday afternoon, well under the 10-year average of $Trio.14, GasBuddy said. The South Carolina average price was $1.88 per gallon Friday, the site said.
At least five states enlargened their gas tax this year.
South Carolina’s gas tax increase was part of a highway bill that became law in May. It had strong support in the General Assembly, but Gov. Henry McMaster vetoed the legislation. Legislators overrode the veto.
In addition to the gas tax increase, the bill includes sales tax and fee increases and tax violates.
Other parts of the law that will go into effect Saturday include:
- A $500 tax for vehicle purchases over $Ten,000
- A $500 fee to register out vehicles
- A $250 fee to register cars from out of state
On Savannah Highway, Palmetto Ford Lincoln Sales Manager Lane Arnold said most customers aren’t put off by the sales tax increase. Many are retirees from the Northeast or Midwest who are used to paying more taxes to buy a car, anyway.
“We’ve been telling customers the sales tax would go up,” he said. “Some say they want to buy now, but others are fine waiting.”
Other parts of the bill that will go into effect in 2018:
- Property tax cuts for manufacturers
- Tax rebates for gas and vehicle repairs
- Earned income tax credits for low income earners
- Tax refunds for South Carolina college students
DOT already has plans for some of the early spending including investing $50 million in the Rural Road Safety Program to repair highways across the state. The very first phase of improvements has been approved along routes including U.S. Highway seventy six in Richland County and U.S. Twenty nine in Anderson County.
“They’re going to be doing something useful,” Coyners said. “If it’s for the roads, what’s the problem?”
Reach Mina at 843-937-5558. Go after her on Twitter @mlcorpuz.