Aproposal to increase South Carolina's vehicle registration fees, recently endorsed by the state highway commission, recognizes the dire necessity of providing for overdue maintenance on the state's secondary roads. Adopting a plan to finance the backlog of maintenance projects should be a priority of the Legislature next session.
The registration fee hike is viewed as a way to diversify the state's road revenue, and provide a stable source of dedicated funding for the so-called "orphan roads," which aren't eligible for federal support. Most of the state's road revenue is used on projects for which matching federal funds can be obtained, thereby increasing the available dollars.
It should be clear to the Legislature that additional revenue is required, and a few proposals are beginning to surface in anticipation of the session. House Ways and Means Chairman Bobby Harrell, for example, wants the Legislature to redirect gas tax revenue that has been diverted from road uses back to the Department of Transportation. That should be the easiest plan for the Legislature to enact and would provide some $60 million in additional revenue.
Rep. Wallace Scarborough, R-James Island, wants the state to charge sales tax on gasoline, while reducing the gas tax 5 cents a gallon. His plan would bring in $80 million.
Any legislative review of road funding must consider the state's gas tax, which is the primary source of revenue for the DOT. At 16 cents per gallon, it is among the lowest in the nation. It hasn't been raised since 1987, reflecting the sensitivity of the Legislature to increase taxes even when, as in this instance, the need is so apparent. Each penny of the gas tax raises an estimated $28 million a year.
The gasoline tax could be termed a user fee, and there is an inherent equity in its levy. Those who use the roads most require more gasoline and thus pay more tax.
The gas tax option includes the benefit of having non-residents pay their share for wear and tear on the roads as they travel through the state. For a state that claims tourism as its primary industry, the number of out-of-state drivers who fill their tanks in South Carolina is considerable.
The DOT registration fee proposal would generate an estimated $100 million. Its endorsement by the highway commission recognizes the difficulties in relying on a single source of revenue, and the difficulty of getting a gas tax increase from the Legislature, particularly when gas prices are spiking.
The Legislature will have several options to debate when it reconvenes in January. With a $560 million annual maintenance shortfall on secondary roads, doing nothing isn't a responsible option.
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