Myrtle Beach tax payers head to car dealerships, the DMV before new fees take effect

Myrtle Beach tax payers head to car dealerships, the DMV before new fees take effect (WPDE)

July 1st is the day the controversial gas tax bill or roads bill will finally be in play. And, in addition to an increase in gas prices, tax payers should expect to pay more when getting new cars.

Several people at the DMV Friday not only had to wait in line when they got inside, but also had to wait to get parking spots. Several fees will be going up, part of the new bill.

Starting July 1, people who buy or register a car in South Carolina will owe a new fee. People will owe a Infrastructure Maintenance Fee (IMF) instead of sales tax. This fee is in addition to the title, registration fees and property taxes, according to a news release.

Related: Unexpected costs, and tax credits, in South Carolina's new roads funding bill

David Dejesus says the waiting is the worst part, "You know, it's always a pain, once again, everyone in this day and age wants things quick, quick, and it's always a pain but it's something you gotta do."

A lot of people in Myrtle Beach had the same idea, to get their car registration Friday, and some didn't realize it was their lucky day.

While the actual increase to registration fees won't go into effect until January 1, 2018, the new IMF fee starts Saturday.

Annah White was happy to hear it, "I think it's awesome."

The new IMF fee will vary from person to person. It's calculated based on the sale price, according to a news release from SCDMV.

If the item is $9,999 or less, you will owe five percent of the purchase price, but if it's $10,00 or more the fee will be $500, the news release states.

People who move to South Carolina with a car, trailer, semi-trailer or other automobile that needs to registered will pay an additional $250 IMF fee on top of the title, registration fees and property taxes.

There's also a fee when buying a car, trailer, semi-trailer or other automobile. Instead of having a $300 sales tax cap, there's now a $500 cap. If it's $9,999 or less you'll pay five percent of the sale price, if it's $10,00 or more it'll cost you $500.

A representative from the SCDMV tells ABC 15 whether a customer pays a sales tax or an Infrastructure Maintenance Fee has to do with the date of purchase of the item. So, if a customer purchased a vehicle Friday, June 30, 2017, but he or she doesn’t title and register it until say mid-July, that person would pay based on the law that was on the date of the sale (sales tax not IMF). Everyone has 45 days to title and register their vehicles in South Carolina.

The bill was passed to help pay to fix South Carolina's crumbling roads.

If you didn't get a chance to save Friday, make sure you start saving your vehicle maintenance receipts and gas receipts so you can get the tax refund that comes along with this law.

For a list of registration fees, click here.

To read the full text of the bill, click here.

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