Many want relief from prices

Tony Baughman

Thursday, May 11, 2006

USCA student Leslie Simpkins fills up for her daily commute back to Columbia. Staff photo by Michael Gibbons

Leslie Simpkins, a senior at USC Aiken who lives in Columbia, pumped $46.02 in high-octane fuel into her tank Wednesday.

“Every other day I have to fill up. I wish they would do something about this,” she said.

Simpkins and others might find some relief at the pumps soon if the state legislature honors a request from Gov. Mark Sanford to suspend South Carolina’s gasoline tax this summer. On Wednesday, the governor asked the General Assembly to set aside the 16.75-cent per gallon tax from Memorial Day through Labor Day.

Sanford also wants the House to include an additional $134 million in its 2006-07 budget before passing it off to the Senate to make up for lost gas tax revenue.

“Whether it’s easing the pain at the pump on the way to work or on the way to the Grand Strand for summer vacation, this tax relief is something that would make a real impact on South Carolinians’ lives and pocketbooks this summer,” Sanford said during a mid-afternoon press conference.

Sanford estimated that suspending the fuel tax would save the average family $63 over the summer. The fuel tax moratorium is possible, he said, because South Carolina has collected nearly $1 billion more this fiscal year than last.

Sen. Greg Ryberg, R-Aiken, who is running for state treasurer, joined other Republican legislators at the governor’s side for the announcement. He noted that the State has a $425 million revenue surplus this year and “can certainly afford a tax cut that returns at least some of that to the hardworking citizen paying nearly $3 a gallon for fuel just to go to work.”

“This suspension will give businesses and consumers temporary relief from the high cost of fuel, and thereby keep the momentum going in our improving economy,” Ryberg said. “A reduction in fuel costs not only helps South Carolinians afford their own transportation; it also leaves more money in the pockets of tourists that they can spend at restaurants and golf courses and hotels.”

However, Ryberg’s local counterpart in the Senate says the governor’s proposal is little more than election-year posturing.

“To say the least, the timing is suspect,” said state Sen. Tommy Moore, D-Clearwater, in a prepared statement from his gubernatorial campaign office in Columbia. “Last summer, South Carolinians begged Mark Sanford for help when devastating hurricanes caused gas prices to skyrocket. Sanford declined, citing his faith in market forces. It seems market forces can’t be trusted so much in an election year.”

By late Wednesday afternoon, the governor’s proposal was already inspiring vigorous debate in the House, according to state Rep. Robert “Skipper” Perry, R-Aiken, who also questioned the governor’s timing.

“It’s coming too late,” Perry said. “We should have done this when gas prices were nearly $3 a gallon. You can buy gas in Aiken now for $2.59 a gallon. I don’t know who it’s going to help right now.”

Among the alternatives being discussed in the House: Bumping the gas tax moratorium back to October to give South Carolinians some relief during the busy holiday shopping season rather than during the summer, when lower gas prices would benefit tourists as much as locals.

Tourism experts say that lower summer gas prices, if approved, could have a ripple effect on tourism-related revenue for state businesses.

“Those people who would consider it a toss-up between South Carolina and Florida, this may be a factor,” said Sarah Davis, spokesperson for AAA Carolinas auto club. “Currently, South Carolina is the fourth cheapest state for gas in the nation; Wyoming, Oklahoma and Missouri are cheaper. The average price in South Carolina right now is $2.71 (per gallon). So, if it’s $2.71 and you took off 16 cents, that would take us down to $2.55 — which would make us the cheapest in the nation. It’s all about marketing, right? ‘We’ve got the cheapest gas in the nation.’”

Perry and other legislators also are concerned about how the House will offset the millions of dollars in lost fuel taxes, which would go to state road projects. Rep. Bill Clyburn, D-Aiken, is waiting for more information before endorsing the governor’s plan.

“We certainly need some kind of method of lowering the cost of gas. The only question is, how do you take care of the shortfall?” Clyburn said. “I am in favor of some method of relief, but it has not been explained where the money is going to come from to make up for some of those projects that are on the drawing board already.”

News editor Michael Gibbons contributed reporting to this story.