With several bills aimed at raising the state's 16 cent gas tax failing in the legislature year after year, Richardson's proposal would raise an additional $268 million a year for the S.C. Department of Transportation.
The Hilton Head Republican said the bill should be filed in the next two weeks in advance of the legislative session beginning Jan. 11.
The 5 percent fee would be charged monthly to companies based on the amount of gas sold to gas stations, with the money raised earmarked for road improvements, said Michael Covington, director of governmental affairs for the Transportation Department.
"It basically has the same effect as the sales tax," he said.
While the state's gas tax is paid at the pump, the franchise fee would be charged to about 45 oil companies doing business in South Carolina, including Shell and ExxonMobil.
Legislators haven't raised the state's gas tax since 1987, leaving it one of the lowest in the country despite caring for one of the largest state-maintained road systems.
A 2002 review by the Transpor-tation Department found annual funding was $560 million short of needed maintenance on the state's roads and $1.3 billion short for new construction.
Half of the money collected through the franchise fee, about $134 million, would go toward maintenance, with a primary focus on repaving roads.
"There's a real crisis in resurfacing secondary roads," Covington said.
The state's secondary roads are on a 160-year cycle for resurfacing ,and the state needs an additional $140 million a year to put those roads on a standard 15-year cycle, he said.
The issue of deteriorating or substandard roads has started to impact economic development in some counties, Richardson said.
"You've got companies that are just not going into some counties because the roads are so bad," he said.
The other $134 million a year raised through the franchise fee would go toward the state's larger road improvement projects, possibly including widening plans for U.S. 17 from Gardens Corner to Jacksonboro and plans to widen or improve U.S. 278, Covington said. Another measure in the bill would allow the Transportation Department sell bonds earmarking the franchise fee as a steady revenue source.
The bill is expected to require money for maintenance and improvement projects be spread out around the state, Richardson said, giving the bill a better chance at nabbing enough support.
The Hilton Head Republican said he's already expecting several legislators sworn against tax increases to come out against his bill.
"We continue to have to deal with this no tax pledge," he said.
But the need for road improvement throughout the state and the lack of funding elsewhere should temper some opposition, Richardson said.
State Highway Commissioner Bob Harrell said work for a gas tax increase hasn't seen much support in the past.
"Until lately, it's been dead on arrival and a waste of time," he said.
State Rep. David Umphlett, R-Moncks Corner, has prefiled a plan to raise the state's gas tax by 6 cents per gallon.
State Highway Commissioner John Hardee this year is a good time to talk about raising gas taxes and implementing the franchise fee.
"Nobody has to face re-election in 2005," he said.