Bipartisan Push in Columbia: Lawmakers Propose 30-Day Gas Tax Holiday

Amidst a sharp spike in fuel prices driven by global instability, a bipartisan group of South Carolina lawmakers is moving to provide immediate relief at the pump. State Representative Mark Smith (R-Berkeley) and State Senator Russell Ott (D-St. Matthews) have introduced legislation that would temporarily suspend the state’s motor fuel tax.

The proposal seeks to pause the 28-cent-per-gallon tax for an initial period of 30 days. Under Senator Ott’s bill (S.1045), the suspension could automatically extend for another 30 days if average gasoline prices do not drop by at least 15% during the first month.

Relief Amidst Rising Costs Fuel prices across the Palmetto State have surged by nearly a dollar in the last month alone. AAA reports that averages for regular unleaded have climbed to approximately $3.65 to $3.79 per gallon, up from $2.70 just weeks ago. Analysts attribute the volatility to maritime disturbances in the Strait of Hormuz and ongoing conflict involving Iran.

South Carolina families are getting squeezed from every direction—groceries, utilities, and now gas prices, Rep. Smith stated. Government shouldn’t sit on the sidelines while people are struggling. We have an opportunity to act, and we should.

Protecting Infrastructure Funding A primary concern for critics of the tax holiday is the potential loss of revenue for the South Carolina Department of Transportation (SCDOT). The gas tax is the primary funding source for road and bridge maintenance, bringing in roughly $90 million per month.

To address this, the proposed legislation includes a plan to backfill the lost revenue. Lawmakers suggest utilizing the state’s contingency or capital reserve funds to ensure that ongoing construction projects and safety programs remain fully funded during the suspension.

Legislative Outlook While the bill has gained quick attention, its path to the Governor’s desk remains uncertain.

• SCDOT Stance: The department has cautioned that any suspension could impact projects unless every dollar is replaced by an alternative source.

• Governor’s Office: Governor Henry McMaster’s office has stated he will review the legislation if it reaches his desk but has not yet signaled a definitive yes or no.

• Current Status: S.1045 was referred to the Senate Finance Committee on March 24.

If passed, South Carolina would follow the lead of neighboring Georgia, where Governor Brian Kemp recently signed a similar 60-day suspension to combat rising energy costs.