To say that time is running out for a legislative solution on highway funding is no exaggeration. Failure to move a highway funding bill to the head of the line for Senate consideration today could mean that yet another session will end without an answer to the state’s crumbling road system.

The Senate Finance Committee on Tuesday approved a plan by Sen. Ray Cleary, R-Georgetown, to raise the state’s gas tax, double the $300 cap on sales taxes for vehicles and put an annual fee on alternative fuel vehicles that pay comparatively little in gas taxes.

By 2017, the bill would bring in an additional $800 million a year to make badly needed road improvements.

The state Department of Transportation estimates a $40 billion road funding shortfall over the next 25 years. Critics contend that the DOT’s estimate includes costs for projects that aren’t really vital to safety and mobility. And maybe the DOT projections aren’t strictly limited to absolute priorities.

But most who drive on South Carolina highways can see — and feel — the road deterioration for themselves. They pay the hidden tax related to the sad condition of state highways — in ruined tires, worn suspension and accidents caused by inadequate or crumbling roadways.

Some concerns could be addressed by restoring a provision in the Cleary bill to fund only priority projects. The bill should also be amended to address a sunset proviso for the secretary of transportation, allowing the Cabinet officer to continue to administer the department.

Further, the Senate bill needs to include incentives to transfer short stretches of state-maintained roads to local governments, where most belong.

At present, South Carolina has one of the largest state road systems in the nation, and one of the lowest gas taxes to provide for maintenance and improvements. The gas tax hasn’t been raised for more than 25 years.

Read the full story by clicking the link below:

http://www.postandcourier.com/article/20150430/PC1002/150439982/1022/beef-up-road-plan-and-pass-it

South Carolina senators passed their own version of a plan Tuesday to raise money to repair the state’s crumbling roads, setting up a crash with their counterparts in the S.C. House.

The collision came as the Senate Finance Committee voted 14-8 to replace a House road-repair plan with a Senate proposal. The Senate plan would raise more money for roads — roughly $800 million a year versus $427 million — but also increase the gas tax more — by 12 cents a gallon versus 10 cents.

Despite a veto threat from Republican Gov. Nikki Haley, the Senate panel approved:

▪ Increasing the state gas tax by 12 cents a gallon over three years

▪ Increasing fees for 10-year driver’s licenses to $50 from $25

▪ Levying a $60 fee on hybrid vehicles every two years and a $120 fee on electric vehicles

▪ Increasing the cap on the state’s sales tax on vehicles to $600 from $300

House Speaker Jay Lucas, R-Darlington, said he was “extremely disappointed” the Senate committee did not debate the various parts of the House bill, instead substituting its own proposal.

Lucas called the House’s 87-20 passage of its own roads plan two weeks ago a “courageous vote,” adding senators focused only on “dollar signs,” not the other reforms in the House plan.

State Rep. Gary Simrill, the York Republican who sponsored the House bill, said the resounding House vote — enough to withstand a promised Haley veto — was because that proposal also included reforming the State Infrastructure Bank and S.C. Department of Transportation.

“The Senate bill … has nothing for reform. It has nothing for right-sizing DOT,” Simrill said. “It is just a funding (proposal).”

A group opposed to raising the gasoline tax will pay the gas tax portion of motorists’ bills in Summerville during afternoon rush hour Thursday as a way to bring attention to how much in taxes drivers already pay.

Americans for Prosperity-South Carolina will be at Express Petroleum at 139 S. Main St. at 4 p.m., trying to reinforce the argument against a 10-cents-gallon gasoline tax hike being considered by state lawmakers to build and repair roads.

The group, part of a national organization, will pay the state and federal gas tax as well as the proposed tax increase lawmakers are considering. It amounts to about 45 cents a gallon.

The full article could be found by clicking the link below:

http://www.postandcourier.com/article/20150428/PC05/150429353/1177/opponents-of-gas-tax-hike-to-pay-motorists-x2019-gas-taxes-at-summerville-station-thursday
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Signage at the gas station will reflect the change in price.

The event will follow a similar one by the group in Greenville Wednesday morning.

“Commuters all over the state have to budget carefully to make sure they can afford to fill their tanks, but rarely do they get reminded about how much of that cost is pure tax,” group state director Dave Schwartz said. “With unaccountable bureaucrats spending this money on mass transit and even bike paths, it begs the question: do we need a massive gas tax hike?”

The chief executive of Sonoco, the state’s largest home-based company, on Tuesday said the state’s poor roads will stall industrial recruitment and cause existing companies to expand elsewhere.

M. Jack Sanders also told the The State newspaper that he would support raising the gas taxes to pay for repairs.

Sonoco estimates that poor roads cost the global packaging giant up to $5 million annually in increased maintenance to its trucks as well as driving farther to avoid bad South Carolina roads.

About $10 million of the $40 million the company spends in-state on freight is gasoline, the company said.

“The timing is right,” Sanders said of a tax increase, noting that wholesale gas prices are low and should remain so for the next few years.

“I also think it’s fair because people that are using the roads are paying to ensure that they are maintained,” he said, without specifying how much of an increase he supports. “Like anybody else, I don’t want to pay any more taxes, but … we have to do something.”

Bad roads also are a risk to the company’s drivers, Sanders said. “There is a potential safety issue. There are insurance and liability issues as well.”

Sonoco is South Carolina’s largest home-based company with more than $5 billion in sales. It has more than 335 operations in 33 countries, producing packaging for some of the world’s most recognized brands, according to its website. Sonoco said it serves customers in 85 nations.

GOV. NIKKI HALEY overplayed her hand so badly by trying to hold a road-improvement plan hostage to her budget-busting tax-cut proposal that she took herself out of the game. That means what happens with the top priority for the state’s business and political communities will be decided by the House and Senate, without the governor’s input.

That’s the most obvious take-away after the House voted by a margin of more than 4-to-1 for a road-funding plan that raises taxes by nearly $400 million. Less obvious but potentially important: If the House and Senate can reach agreement on a plan that retains anywhere near that much support — not a sure thing, but there’s no legitimate reason it can’t happen, if Senate leaders are as committed to tackling our long-neglected roads problem as they say they are — this could signal a huge shift in how our Legislature does its job.

It was a busy week at the State House, where a comprehensive roads plan finally made big progress.

But the politics and debate aren’t over.

The President of the South Carolina Trucking Association has been following the legislation closely.

He’s not sure what will happen over the next few weeks, but says Governor Nikki Haley might find herself in a tough position if she’s forced to veto road funding.

As the president of the South Carolina Trucking Association, Rick Todd hears the same old complaints all the time.

“If we blow out a tire because we hit a big pot hole, that’s a several hundred dollar tire,” Todd said. “Then, you got the down-time, the expense of the repair, and lost productivity.”

But this week, the South Carolina House of Representatives passed a bill that might pave the way to change.

“It’s a good sign when you can get the House of Representatives, a very conservative body, to cast a vote of 87-20 on a tax increase,” Todd said.

It was welcome news to Todd, but he’s not celebrating just yet.

Governor Nikki Haley has said she’ll veto any roads bill that doesn’t include three things: reducing the Income Tax rate from 7 percent to 5 percent over the next decade, reforming SCDOT, and increasing the gas tax by ten cents over the next three years.

The House bill addresses the gas tax and SCDOT, but the Governor says she’ll veto it because it doesn’t cut taxes enough.

“I think the governor is in a tough position, because she’s come out so strongly threatening a veto, despite the fact that the public overwhelmingly recognizes that the roads have to be fixed,” Todd said.

Read the full article by clicking the link below:

http://www.wistv.com/story/28835711/road-expert-legislation-might-put-governor-in-tough-situation

The South Carolina House passed a bill Wednesday to pay to repair the state’s crumbling roads by increasing the state’s gas tax by 10 cents a gallon.

The proposal, which would raise roughly $427 million a year, passed 87-20, a large enough margin in the GOP-dominated House to survive a veto threat by Republican Gov. Nikki Haley.

State Rep. Gary Simrill, R-York, said the “strong vote” shows House members are serious about fixing S.C. roads.

The House proposal would:

▪  Increase the state’s gas tax by the equivalent of 10 cents a gallon to 26.75 cents

▪  Increase the maximum state sales tax on vehicles to $500 from $300

▪  Cut the average S.C. taxpayer’s income taxes by $48 a year. Once phased-in after two years, that tax cut would reduce the state’s $6.9-billion-a-year general fund by roughly $50 million.

Haley took to Facebook on Wednesday evening saying she was stunned the House voted to “raise your taxes by $365 million” next year. She posted to her social media followers how House members voted. She has said she would veto a tax increase to repair roads that did not include a “massive” tax cut.

South Carolina’s business leaders say legislators must pass a bill in the coming weeks that raises at least another $600 million a year for road and bridge work.

With just 24 days left in the legislative session, the South Carolina Chamber of Commerce and Manufacturers Alliance sent legislators a letter urging action. While the groups lay out a broad, five-point plan, they’re not picky on the specifics. What’s unacceptable is for the session to adjourn without a deal, said Ted Pitts, the chamber’s president and CEO.

“It’s way past the critical point. We need them to start moving now,” Lewis Gossett, the alliance’s president and CEO, said Monday via cellphone, as he dodged a huge pothole on Interstate 26.

The Department of Transportation has said it needs more than another $1 billion annually over 20 years to bring roads to good condition. The business groups are seeking at least $600 million through diversified sources — noting that as vehicles’ fuel efficiency increases, gas taxes will bring in less revenue.

Deplorable road conditions affect the state’s image and ability to attract business, said Jack Sanders, president of Hartsville-based Sonoco, which has some 200 trucks on South Carolina’s roads at any given time. The company says it spends millions yearly on truck repairs and lost time for detours around unsafe bridges.

Like other business executives, Sanders said road conditions are part of any discussion on whether to expand in South Carolina.

“We are one of the fastest-growing states. If we’re going to continue that wonderful growth, somehow, some way we have to widen our roads and repair our roads,” said Brian Newman, president of Honda of South Carolina, who worries about parts getting damaged on rough roads before arriving at his Timmonsville plant.

Progress could occur this week.

The House is expected to debate a bill Wednesday that would generate another $400 million annually for roadwork. It also cuts most taxpayers’ income taxes by $48 yearly. A bill up for debate in the Senate would generate roughly $800 million annually for roadwork but doesn’t address income taxes.

The House’s income tax provision is an attempt to escape Gov. Nikki Haley’s veto pen. But the threat looms, regardless.

Haley had repeatedly promised to veto any increase in the gas tax. In January, she offered to sign a 10-cent increase, but only if it’s accompanied by deep cuts to personal income taxes. Her plan would cut general fund revenue by $1.8 billion annually. But legislators of both parties balked, arguing that could necessitate deep budget cuts in education, health care and other services.

“What we need is money for roads,” said Rep. Gary Simrill, R-Rock Hill, chairman of the House panel that’s worked on a plan since last fall. “A roads bill is not the place to cover comprehensive tax reform.”

The governor should be held accountable by the General Assembly for all revenue, including any new taxes, spent by SCDOT. Our roads crisis demands some increase in revenue to reverse our slide into complete decay. SCDOT may need more in the future, but it would be fiscally foolish to give them an additional $1 billion per year before the governor presents a reform plan. Our current Secretary of Transportation has said that an increase of $400 million per year would allow SCDOT to bring our current system up to an acceptable condition without initiating any new projects.

The bipartisan plan cuts the gas tax and shifts the difference to a sales tax based on the wholesale price of gas. In effect, it shifts revenue from a stable, fair and visible revenue stream to an unstable, unfair and hidden revenue stream. Our roads system receives the vast majority of funding from our gas tax. It was last increased 25 years ago to 16.75 cents per gallon. Inflation and an expanded road system have devalued the effectiveness of the current tax rate. Increasing the current gas tax by an additional 10 cents per gallon tax would raise around $400 million per year. It would be politically foolish to pass a confusing tax swap when a simple increase in the gas tax would yield an adequate amount of revenue.

The bipartisan plan offers a nominal amount of income tax relief — about $48 per filer — to offset the road tax increase. We have an unfair and antiquated tax system. Our sales tax system has over 80 exemptions for various groups and industries. We actually exempt more revenue than we collect. The income tax structure allows 40 percent of those who file an income tax return to pay zero taxes. These two systems shift most of our overall state tax burden to our working population. The tax swap provision in the bipartisan bill forces our workers to shoulder even more of the tax burden and further confuses our tax system. Having never benefited from any meaningful income tax relief, our workers deserve more than a $48 reduction.

Read the full article by clicking the link below:

http://www.greenvilleonline.com/story/opinion/contributors/2015/04/11/road-repair-debate-begins-sc-house/25603017/

As you travel around South Carolina, it is becoming more and more evident that our roads need additional funding. Since the last 3-cent-per-gallon gas tax increase was signed into law by then-Gov. Carroll Campbell in 1987, the cost of paving a road has increased five-fold, while our state’s 16.75 cents fuel tax has remained the same. Clearly, something has to give.

While there are many competing fuel tax increase plans in the Legislature, our organization prefers Gov. Nikki Haley’s plan because it accomplishes two goals: It raises needed revenue for our roads by increasing the fuel tax by 10 cents per gallon over three years (raising nearly $400 million), and it lowers South Carolina’s highest-in-the-Southeast income tax to 5 percent over a period of 10 years.

By passing the Haley plan, the General Assembly will deliver a two-fold economic boost: needed money for infrastructure, which helps attract more corporate investment, and a lower income tax rate, which many retirees and corporate leaders consider when relocating. The critics who say South Carolina cannot sustain the budget cuts needed to lower the income tax rate are discounting normal revenue growth.

As South Carolina’s population has grown, along with more economic development, the state budget has grown by hundreds of millions of dollars a year in normal economic times. In a worst-case scenario where the economy suffers an unlikely slowdown, the income tax cuts could be tapered in over a longer period.