COLUMBIA ? Take the family out for a decent dinner with the money state
lawmakers could save you on gasoline this year.
But don't order drinks or dessert because the average family would only save
about $63 at the pump under a plan approved Wednesday by the House.
Lawmakers voted 67-29 in favor of a budgetary measure that would temporarily
suspend the state's 16.75-cents-a-gallon gas tax from Oct. 1 to Dec. 31.
If adopted by the Senate, South Carolina would become the first state in the
nation to impose a short-term moratorium on its gas tax in light of rising
prices at the pump, according to the National Conference of State
Legislatures.
More than a dozen other states are debating a possible gas tax deferral and
Congress is also toying with the idea of repealing the federal gas tax.
"In my opinion, the biggest tax pinch being felt by South Carolinians right
now is at the gas pump and that's where tax relief will be most felt," said Rep.
Alan Clemmons, a Myrtle Beach Republican who came up with the idea.
Joe Spann, owner of Carolina Express on Ashley Phosphate Road in North
Charleston, agreed that the tax break would be a relief, but he's skeptical.
"It's nice that the government is thinking about the small guy, but they are
going to be making those taxes up somewhere else," he said.
Spann also is worried about fallout from the high gas prices.
Spann said he has seen people's credit-card usage increase as dramatically as
prices have, which hurts business owners and, ultimately, consumers. He
estimates the fees he pays for accepting the cards are three times what they
were five years ago.
The House action came after Gov. Mark Sanford and lawmakers held a joint
press conference earlier in the day to announce the plan.
The occasion was a rare opportunity for the governor and lawmakers to read
from the same page, but it didn't last long.
By the end, Sanford, House GOP leaders and even Democrats all tried to claim
credit for the populist, election-year scheme. The event also attracted
criticism from state Democratic Party officials, who labeled Sanford's rhetoric
"election year gimmicks."
Lachlan McIntosh, the party's executive director, pointed to the fact that
the governor did nothing to rein in gas prices after they peaked in the wake of
Hurricane Katrina.
"Mark Sanford arrogantly ignored the high price of gas for a year," he said.
"Now, with his (June) primary looming and the Legislature in the closing stages
of finalizing the budget, Sanford finally decides to act."
For Sanford, it's not as much about the need for relief at the pumps as it is
reducing the amount of state spending.
In his executive budget, Sanford pushed for tax rebate checks. Both
legislative chambers quickly rejected that idea, and Sanford later signed on to
the House property tax relief plan that the Senate killed Tuesday.
With those proposals stymied by lawmakers, Sanford turned to the gas tax ? a
possibly fail-safe approach ? as the way to provide tax relief.
"We think it would have a real bottom-line benefit to a lot of working
families who are struggling with the price of gas," the governor said.
The pump tax is traditionally directed to road maintenance projects, but
lawmakers and Sanford said surplus revenues coming into state coffers would
offset any reduction in funds.
The governor's office estimates that the tax break would cost about $134
million, saving families $62.80 over a three-month period. The calculations are
based on federal statistics that show an average family buys 125 gallons of gas
a month. A gallon of regular unleaded gas in South Carolina now averages about
$2.71, according to AAA Carolinas.
At the press conference, the governor proposed suspending the gas tax from
Memorial Day to Labor Day to give motorists an added incentive to travel this
summer.
But the House went a different direction after a chaotic floor debate.
Rep. George Bailey, R-St. George, and a number of colleagues advocated the
October to December period because they didn't want to subsidize Northern
tourists passing through on their way to Florida. The later date ensures that
state taxpayers will get the most relief, they argued.
"I'm sure the Orlando Chamber of Commerce appreciates everything we do to
bring folks down there," said Rep. Thayer Rivers, D-Ridgeland, referencing the
location of Disney World theme park.
The change didn't satisfy other lawmakers, such as Rep. Rex Rice, R-Easley,
who suggested a flat $100 one-time gas rebate check. That proposal failed
57-38.
Another concern for lawmakers was whether gas stations would actually lower
the price at the pump by 16.8 cents a gallon.
"What in essence we are going to be doing is adding to the coffers of oil
companies with our own tax money," said Rep. Gary Simrill, R-Rock Hill.
Simrill added a provision that requires vendors to reduce the cost of
gasoline by the size of the tax break during those three months. It doesn't
include any penalties, but Simrill said it would empower the state's Attorney
General to enforce the law.
"The bill is half-baked," Simrill said. "But at least we added a little
assurance for potential tax relief."
Reach John Frank at (803) 799-9051 or jbfrank@postandcourier.com. Noah
Haglund contributed to this report.
