House votes to suspend gas tax

Some call it a political maneuver, though.

BY KIRSTEN SINGLETON
BLUFFTON TODAY COLUMBIA BUREAU

COLUMBIA — Nudged by Gov. Mark Sanford, the House voted Wednesday to suspend the gas tax from Oct. 1 through Dec. 31.

Earlier in the day, Sanford asked the House to set money aside in the budget to pay for the temporary elimination of the state’s 16.75 cent-per-gallon gas tax from Memorial Day through Labor Day.

The House opted instead to suspend the tax at the end of the year.

Lawmakers estimate their plan will cost about $100 million.

The suspension, Sanford said, would be a “bottom-line benefit for a lot of families who are struggling.”

David Fornshell, a Bluffton resident and owner of David’s 1st Class Limousine Service, said he would like a break at the pump. On Wednesday evening, Fornshell stopped at the Enmark in Kitties Crossing. He pumped $75 worth of gas into one of his three stretch SUV limos.

“If you’re in the travel business, (gas prices) are a big concern,” he said. “(A tax break) will help everybody in the state, residents and tourists.”

Lou Cooley, who was also at the gas station, agrees that suspending gas taxes “is a good idea.”

To save money, Cooley pulls his crab boat to the gas station, rather than filling up at one of the local marinas, where prices, he said, tend to be steeper.

Fuel for the boat — which has a 60-gallon tank — gets expensive, Cooley said.

Some lawmakers aren’t so sure Sanford’s plan will work. They were concerned that retailers wouldn’t pass on the savings to consumers and that South Carolina taxpayers would be funding a break for out-of-state tourists if the General Assembly approves the request.

“Shouldn’t we give the break to the actual citizens who are paying (for) it?” Rep. Brian White, R-Anderson, said.

Rep. Bill Herbkersman, R-Bluffton, said there’s “no question” the proposal is a political maneuver.

AAA Carolinas spokesman Tom Crosby agreed and called Sanford’s move “political posturing.”

“While the gas prices are up, we’ve not seen a significant drop in demand,” he said. “It’s nice to provide relief, but it’s a temporary thing and isn’t going to solve the problem.”

Hilton Head Island saw record occupancy rates in January and February, according to Charlie Clark, spokeswoman for the Hilton Head Island/Bluffton Chamber of Commerce.

“We had a surprisingly strong winter,” she said. “We believe any measure that encourages summer travel is good news, but traditionally gas prices have not had an impact on travelers to Hilton Head Island. We’ve actually seen our numbers increase for the past three years.”

House members did vote to require retailers to pass the savings on to consumers. Lawmakers are considering a bill banning price gouging.

With gas prices up nationally, on average, 70 cents over last year, Americans say they are worried about how the price of gas is affecting their finances.

A recent AP-Ipsos poll showed that two-thirds of those questioned said they were cutting back on driving and were using their heating and air-conditioning less.

According to AAA, the average price per gallon of gas was $2.81 in the Southeast on Wednesday. The national average is $2.88.

Experts blame a short supply of oil, political unrest in oil-producing countries and increased demand, especially in countries like China and India.

South Carolina has no control over those issues, Sanford said.

But in suspending the gas tax, he said, South Carolina might attract visitors who otherwise would stay home due to high gas prices.

The governor rejected the notion that his proposal is election-year politics.

It is, he said, a reaction to the Senate’s inability to provide tax relief in its budget proposal or to pass comprehensive property-tax relief.

House Speaker Bobby Harrell, however, said he expects the House to push for property-tax and gas-tax relief when a conference committee of representatives and senators meets this month to find a compromise on the Fiscal Year 2007 budget.

Harrell was among the representatives who stood in support of Sanford when the governor made his request.

Harrell said the Board of Economic Advisors is expected to announce soon that the state’s revenues are higher than expected.

The House plan would be funded with that additional money, he said.

The Senate had the day off in observance of Confederate Memorial Day, but Sen. Greg Ryberg, R-Aiken, attended Sanford’s press conference.

“I think the majority of the Senate is likely going to (support a plan) related to property taxes or support this,” said Ryberg, a candidate for state treasurer.

“I don’t think it’s a novel idea to let people keep their money,” he said.

South Carolina isn’t the only state to consider a gas-tax holiday.

Georgia Democrats have called on Gov. Sonny Perdue to suspend that state’s gas tax, as he did last year after Hurricane Katrina.

Other states considering a gas tax suspension include Rhode Island, Minnesota and Delaware.

Bluffton Today reporter Erinn McGuire contributed to this story.

Kirsten Singleton may be reached at kirsten.singleton@morris.com or (803) 414-6611.