Last Wednesday, the South Carolina state legislature enacted into law a bill which will increase the state’s gas tax by 12 cents, from the present 16.75 cents per gallon to 28.75 cents per gallon when fully phased in 2022. The tax will increase 2 cents per gallon each year beginning July 1, 2017, for the next 5 years. In addition to the increase in the gas tax, the bill also included several other measures:
- Increases the maximum sales tax on in-state purchases of automobiles from $300 to $500
- Provides for a one-time infrastructure maintenance fee upon registration of a vehicle up to $500 (or $250 if from out of state). These vehicle purchases would be exempt from the SC sales and use tax.
- Imposes a biennial fee of $60 for hybrids and $120 for electric vehicles
- Increases vehicle registration fees by $16
- Increases the college tuition tax credit
- Increases the credit for dual-income taxpayers filing joint returns
- Provides for an income tax credit for South Carolina residents to offset the increase in the gas tax
If you would like additional information on the new SC gas tax bill, please contact your Elliott Davis Decosimo tax advisor.