Like most states, in South Carolina, the state motor fuel user fee (aka the “gas tax”) is the primary source of state revenue for roads and bridges. This fee, set at 28 cents per gallon, applies to all gasoline and diesel purchases made in South Carolina.
South Carolina’s revenue trajectory changed significantly with the passage of the road funding bill (Act 40) in 2017. That legislation, which increased the “gas tax” by 12 cents, phased in at two cents per year over six years (2017 – 2022), has been the key driver for the state’s motor fuel revenue growth.