COLUMBIA -- Plans to eliminate the state's gasoline tax for three months this
fall are running on empty in the Senate even though Gov. Mark Sanford tried to
rally support for the idea Tuesday.
Even some who like the idea of eliminating the state's 16.8 cent-a-gallon tax
don't want to do it between Oct. 1 and Dec. 31 because of the November
elections.
"In Louisiana, we call that vote buying," said Sen. Robert Ford, D-Charleston
and a New Orleans native.
"It's a political ploy to get votes out in November," said Sen. Jake Knotts,
R-West Columbia.
Ford introduced a resolution that would have cut the tax from July through
September and tried to get the Senate to put it on a fast track for passage.
But Senate Finance Committee Chairman Hugh Leatherman, R-Florence, objected.
Leatherman says there's no guarantee the tax break would ever reach
consumers.
It's a sentiment that Leatherman will carry into a budget conference
committee that begins meeting Wednesday. The House passed a plan for the gas tax
break in its final version of the budget last week.
But Leatherman and at least one of the two other senators on that conference
committee would have to agree to keep it in the state's $6.5 billion spending
plan.
Supporters say growth in state revenue from a surging economy will pay for
the break.
"The big spenders in the Senate can play with the numbers until they're blue
in the face," Sanford spokesman Joel Sawyer said. "The fact is this budget
doesn't return any new dollars to the people of this state despite nearly a
billion dollars in new revenue."
Senate Transportation Committee Chairman Greg Ryberg, R-Aiken, made his
fortune selling gas through a convenience store chain. He said retailers can be
trusted to pass on the savings.
"There's not going to be any adverse impact," said Ryberg, a candidate for
state treasurer. "That's your friends back home, the retailer."
Ryberg was one of five Senators who showed up to support Sanford's plan to
suspend the tax between Memorial Day and Labor Day, which would cut $134 million
in tax revenue.
Senate Minority Leader John Land, D-Manning, says there is no guarantee that
economic growth will make up the difference.
Land also doesn't like the idea of lifting the tax and then letting it fall
back in place. That happened a few years ago with a temporary reduction in
grocery sales taxes. That's "unfair to the taxpayer," he said.
Sen. David Thomas, R-Fountain Inn, is on the budget conference committee with
Leatherman and Land and says there are other concerns. For instance, most of the
gas tax goes into road projects and repaying bonds for that work.
The governor's spokesman said Sanford's proposal guarantees bonds will be
paid by other sources, but bondholders could get jittery about those
promises.
At the same time, reducing tax collections for a few months could become a
factor in determining what the Department of Transportation can borrow for road
projects in the future.
"The bond issue is a real serious problem," Thomas said.
Apart from those concerns, local governments get almost a quarter of the fuel
excise tax -- nearly 4 cents on the gallon, said Sen. Dick Elliott, R-North
Myrtle Beach. Losing that would hurt those projects, he said.
Knotts agreed.
"We can barely find money now to repair our roads and bridges," Knotts said.
"If we just set them back three months, we're going to have to make up for it
later."
Sawyer says it's not a problem.
"The proposal we've laid out fully funds what would have been generated by
the gas tax," he said. "Our proposal holds DOT and road funding harmless."