H.3516 would increase the gas tax by ten cents (a yearly two-cent increase over the next five years). It would also increase vehicle registration fees from $24 to $40 and add a new infrastructure maintenance fee for first-time vehicle registrations in South Carolina. The bill would also add a biennial road use fee for electric and hybrid vehicles.

The problem with South Carolina roads is structural rather than monetary, as existing infrastructure revenue is spent unwisely and the system is unaccountable to taxpayers. These issues should be addressed before a tax hike is even considered.

 

By South Carolina Policy Council

Since 1986 the South Carolina Policy Council Education Foundation has advocated innovative policy ideas that advance the principles of limited government and free enterprise. The Policy Council is the state’s meeting place for business leaders, policymakers, and academics – as well as engaged citizens – who want to see South Carolina become the most free state in the nation. For questions or comments on the articles on this website, please email Research Director Jamie Murguia.