road funding Archives

South Carolina’s fuel tax increased by two cents on July 1, bringing the statewide total to 22.75 cents per gallon. The increase marks year three of the six-year phase-in period established by the 2017 road funding law.

Why is the Fuel Tax Increasing?

The primary source of state funding for roads and bridges comes from the state fuel tax. Prior to 2017, South Carolina had not adjusted the fuel tax since 1987. South Carolina’s fuel tax was among the lowest in the nation and had lost a significant amount of buying power.

The SC Legislature made transportation infrastructure a priority in 2017, choosing to increase vehicle-related fees to make additional investments to fund improvements to South Carolina’s extensive state-owned road system.

All of the new user-fee based revenues, including the fuel tax, are being used to make repairs and improvements to existing roads and bridges in all 46 counties in South Carolina.

The 2017 investment was long overdue, and right now, South Carolina is working to make up for years of neglect due to underfunding.

All of the new revenues go directly to the Infrastructure Maintenance Trust Fund to be used on repairs to existing roads and bridges across the state. A full accounting of this fund, including project lists, and vendor payments are available online and updated monthly.

To date, over $1 billion has been committed to fund improvements to over 3,000 miles in ALL 46 counties in South Carolina.

NONE of these improvements would be possible without the revenues from the 2017 road funding law.

Despite the increase, our gas receipts will still be among the cheapest in the nation. For example, here’s how much you would be paying in state taxes/fees to fill up in our sister states:

Also, just for comparison on July 1, 2019, the average price of regular unleaded gasoline in SC was $2.37 per gallon – which is lower than it was the year before. (On July 1, 2018, the average price was $2.52 per gallon.) View more details about South Carolina’s gas tax prices here.

South Carolina is not alone when it comes to increasing fuel taxes to fund road improvements. Since 2013, 31 states have adjusted their fuel taxes to fund transportation infrastructure improvements.

SCDOT has mapped out a decade-long plan designed to rebuild decaying roads and replace structurally deficient bridges across the state. The foundation of this mission begins on Saturday, July 1, with the Roads Bill being enacted into law.

The Roads Bill, a years in the making bipartisan initiative, comes after decades of under-investment in our highway transportation system. The legislation, approved by super-majorities in both the House and Senate, enables SCDOT to begin comprehensive fixes in a responsible, sustainable manner through the following fee increases.

The state’s gas tax, currently the second lowest in the nation, will increase for the first time since 1987. On July 1, 2017, the 2 cent increase will take effect and will increase by another 2 cents each year for six years – resulting in a 12 cent increase. At full implementation, the state’s gas tax will equal 28 cents per gallon, significantly less than our neighbors – Georgia’s 31 cents and North Carolina’s 35 cents.

Additionally, the vehicle sales tax will be raised – for the first time since 1981 – on July 1 along with other vehicle-related fees.

As a result, South Carolina’s lowest in the nation per mile transportation budget will receive an increase of roughly $800 million in annual, additional revenue by 2024.

The SC Alliance to Fix Our Roads President, Bill Ross, issued the following statement in response to SCDOT’s release:

“We applaud SCDOT and their monumental 10-year program aimed at rebuilding South Carolina’s decaying transportation system. This program is a direct result of the South Carolina Legislature’s approval of the comprehensive roads bill.

Moreover, these future projects would not be possible without the additional funding provided by South Carolinians and out-of-state motorists. While there are reasonable fee increases, the future return on our investment in safer, more efficient roads is unmatched.”

The Rebuild

The 10-year program to rebuild South Carolina’s infrastructure
will focus on the following areas:

Rural Road Safety Program
South Carolina has the highest rural road fatality rate in the nation. As such, the new program uses targeted data to identify and implement needed safety features on 1,000 miles of the state’s deadliest roads.

Bridge Replacement Program
DOT plans to replace 465 bridges over the next ten years, many of which are load-restricted and cannot be used by school buses or larger trucks.

Interstate Widening Program
Using a “Fix it First” approach, SCDOT is currently working to improve 140 miles of existing interstate highways. As the revenue grows, the agency will be able to address additional miles.

Road Resurfacing
The department aims to double the resurfacing program. SCDOT aims to improve poor pavement conditions and eradicate countless potholes on interstates as well as the major routes that connect our cities, towns, and secondary roads.

View Projects in Your Area Below:

Secretary Hall’s Message to the Public: Patience

“Our roads fell into neglect over a 30-year period. We believe the 10-year plan can make great strides in rebuilding our system. The new funding will trickle into the Maintenance Trust Fund at first. But as funding increases in small increments over the next six years, South Carolinians and our visitors can expect to see more road and bridge construction all over the state with each passing year,” said Hall.

SCDOT will make periodic reports on the progress of the 10-year plan as revenue accumulates and as SCDOT engineers’ rebuilding project plans move into the construction phase.

Stay up to date with projects around the state by viewing DOT’s interactive maps on their website HERE.

Resources:
SCDOT Press Release
SCDOT Press Kit

https://scfor.org/2017/06/30/scdot-embarks-10-year-plan-rebuild-south-carolinas-highway-system/