Could Senator Cleary’s Gas Tax and Motor Vehicle Tax Hikes be the Solution for Poor SC Roads

sen cleary

South Carolina’s road shortcomings are well recognized but the prospects for a funding solution don’t appear to be generating the necessary enthusiasm in the Legislature.

The issue is getting bogged down with side issues that are likely to delay a funding solution for yet another year. Gov. Nikki Haley, for example, wants a gas tax increase tied to a major cut in the state income tax rate. And she has threatened to veto anything less. It’s almost a guarantee for stalemate.

The Legislature should look to a simple solution — such as that recommended by Sen. Ray Cleary, R-Georgetown. His proposal grasps the essential problem of crumbling infrastructure and doesn’t shy away from applying the necessary remedy.

Sen. Cleary’s plan seeks new revenue from two main sources: an increase in the state gas tax, and an increase in the sales tax for motor vehicles. His bill recognizes that both sources of revenue are long overdue for adjustment.

The state’s gas tax is 16-cents per gallon, and hasn’t been increased for 25 years. It is among the lowest gas taxes in the nation, and the condition of South Carolina roads is testament to the overdue necessity of increasing the primary source of state revenue for transportation.

The DOT puts the cost of necessary improvements at an astronomical $30 billion over the next 25 years. That would require another $1.2 billion a year to bring the transportation system up to par.

At an additional 10-cents per gallon, Sen. Cleary’s gas tax hike wouldn’t solve that mammoth problem, but it would be a start.

So would an adjustment to the preposterously low ceiling for sales taxes on motor vehicles. Buyers pay no more than $300 in sales tax for any auto, which means that the buyer of a used car costing $6,000 pays the same as the purchaser of a $80,000 luxury vehicle. Where’s the logic or equity in that?

 

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