The South Carolina House passed a $427 million transportation plan that includes a gas tax and vehicle sales tax hike, which would be offset by a $50 million income tax cut.
Under the new plan, drivers would eventually have to pay 10 cents more per gallon at the pump to fund the statewide transportation improvements outlined in the plan. In addition, the average taxpayer’s income would be cut by $48 a year with the goal of reducing South Carolina’s $6.9-billion-a-year general fund to approximately $50 million after two years.
The transportation plan passed in an 87-20 vote, but faces an uncertain political future. It took more than seven months of deliberation, which included criticism from Charleston-area lawmakers who believe it favors rural areas and would negatively impact the Charleston area.
Republican Rep. Jim Merrill and Democratic Rep. Leon Stavrinakis said the plan allocates an additional $25 million per year equally among the South Carolina’s 46 states, without taking factors such as population into account.
The plan also gives the governor more control over the Department of Transportation, and the increase in the gas tax is paired with a slight income tax reduction to make up the difference.
