Should SC suspend the gas tax? Some House members look to ease the pain at the pump
Several South Carolina House members are looking to make a push to suspend the state’s gas tax.
The 26-cent per gallon gas tax, which goes up to 28 cents on July 1, brings in about $910 million a year to the state, with higher amounts collected during warmer months as tourists visit South Carolina.
Democratic gubernatorial candidate Joe Cunningham first called for the suspension of the gas tax in November. Recently some Republican state lawmakers including State Rep. Russell Fry, R-Horry, who is running for Congress in the coastal 7th District, and state Rep. Stewart Jones, R-Laurens, are calling for the suspension.
The push to suspend the motor fuel tax comes as gas prices have sharply increased, especially in recent weeks after the Russian invasion of Ukraine and as the U.S. has banned oil imports from Russia.
Jones told The State he was looking to propose a provision in the annual spending plan to suspend the motor fuel tax during this week’s budget debate, but clarified Monday he would make the push through traditional legislation.
Fry said he and Jones were looking at ways to “ease the pain at the pump here in South Carolina.”
Suspending the gas tax without replacing the revenue would mean pain on the roads, Hall said. Paving work, bridge projects and large projects such as Malfunction Junction northwest of Columbia would be delayed, said Secretary of Transportation Christy Hall.
She added pothole patching, mowing and litter pick up also would stop and the state’s ability to receive federal matching dollars would be stopped.
“If the revenue stream completely cut off with no back fill, and the money just disappears, then it would create a massive cash flow issue here at the DOT for our ability to meet current contractual obligations, ” Hall said.
Hall also is worried that oil companies and gas stations may not necessarily pass along the savings to motorists.
Georgia’s House of Representatives recently voted to suspend the state’s gas tax through May 31, while using budget surpluses to cover money lost by the suspension. The move still needs to be approved by the state’s Senate and signed by the governor.
Brian Symmes, spokesman for the Gov. Henry McMaster, pointed out the governor vetoed the gas tax increase in 2017 and would consider any piece of legislation that reaches his desk.
However Symmes said McMaster, who signed onto a letter with 24 Republican governors, believes high gas prices are the result of long-term issues that need be dealt with by the Biden administration.
The group of governors called for President Joe Biden to allow for new oil and gas development on federal land, allow the Keystone XL pipeline to be built and for the reinstatement of regulatory reforms to streamline energy permitting.
“We can protect our national energy security and sell to our friends rather than buy from our enemies — specifically Russia,” the governors wrote.
This story was originally published March 14, 2022 at 4:11 PM with the headline "Should SC suspend the gas tax? Some House members look to ease the pain at the pump."
