The South Carolina House of Representatives on March 1 passed a plan to increase motor fuel taxes and transportation-related fees to provide an estimated $600 million annually for needed transportation infrastructure maintenance and construction. The plan will now go to the Senate for consideration.

If approved by the Senate, South Carolina House Bill 3516 (H 3516) would increase the state motor fuel tax gradually over five years, for a total increase of 10 cents-per-gallon. The bill would also create an infrastructure maintenance fee of $250 for out-of-state vehicles registering for the first time in South Carolina, and raise the limit of the 5 percent vehicle sales tax from $300 to $500. Additionally, H 3516 would institute a new $120 biennial road user fee for electric or hydrogen vehicles and a $60 hybrid biennial road user fee for vehicles that use a combination of motor fuel and another fuel source.

The plan passed in the House with a vote of 97-18 (five excused). The bill will now be referred to the Senate, where it will be assigned to a committee for initial evaluation.

Visit ARTBA-TIAC’s “State Transportation Funding Legislation” page to see what other states are considering transportation funding legislation in 2017.