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South Carolina gas tax increase starts July 1

(WPDE file image)

On July 1, several tax changes will go into effect as part of the controversial road-funding bill that was passed during South Carolina's 2017 legislative session.

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

The South Carolina Department of Revenue is working to ensure a smooth implementation of these taxes for all taxpayers and sent out a news release on Thursday to break down some of those changes.

Motor Fuel User Fee (Gas Tax)

Starting July 1, the gas tax will increase from $0.16 to $0.18 per gallon of fuel.

That fee will continue to increase by $0.02 per gallon on July 1 every year until 2022.

That tax impacts all fuel, gasoline or diesel, the release said.

Maximum Sales and Use Tax and New Infrastructure Maintenance Fee

The tax that's paid on the sale or lease of items like boats, airplanes, and some construction equipment will also go up on July 1.

The Maximum Sales and Use Tax will increase for most items from $300 to $500, the release said.

Also, some items, like motor vehicles and motorcycles, that were subject to that tax will instead be subject to an Infrastructure Maintenance Fee. That fee is paid to the South Carolina Department of Motor Vehicles.


The act also established a new refundable income tax credit which goes into effect January 2018. Taxpayers will be able to claim the credit when filing their income tax returns in 2019, the release said.

The department of revenue will release information this fall to help those who want to claim that credit.

For more details related specifically to the Motor Fuel User Fee and Maximum Sales and Use Tax, go to dor.sc.gov.

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