The South Carolina House has
approved an effort sought by Gov. Mark Sanford that would cut prices at the
pump for three months. Though several states are considering fuel tax breaks,
this measure is the first to propose a three-month break.
The effort now heads to a
House-Senate conference committee.
House lawmakers voted Wednesday,
May 10, to add a provision to the House version of the state budget that would
suspend the state’s 16.75-cent tax on diesel and gasoline from Oct. 1 through
Dec. 31. The Republican governor proposed a moratorium from the tax from
Memorial Day through Labor Day.
The Republican-led House changed
the time period from summer to late fall, saying it would benefit state
residents more than tourists who visit the state’s beaches, The Greenville
News reported.
How the tax holiday would affect
the status of the International Fuel Tax Agreement requirements for miles
driven in South Carolina is unclear.
Some Senate Democrats have tabbed
the effort as political pandering in an election year. Others in the chamber,
including Republican leaders, raised concerns about losing out on nearly $100
million in taxes mostly used to pay for road work. They also questioned whether
fueling stations would drop prices.
Sanford said the lost revenue could be covered by nearly $1
billion in new revenue for the state this year, the newspaper reported.
South Carolina isn’t the only state considering fuel cost relief. Other
states pursuing similar actions include:
An Alabama House Democrat has
requested that Republican Gov. Bob Riley open a special session so lawmakers
can discuss a possible repeal of the state’s fuel tax. Nothing is in writing
yet and no word on whether diesel would be included in any tax breaks.
Connecticut Gov. M. Jodi Rell said
she would consider a legislative effort to suspend the state’s per-gallon tax
for the summer. A special session would need to be called for lawmakers to
address it. There is no indication yet if it would include taxes on diesel.
A Republican hopeful for the Nevada governor’s seat is calling for the state’s portion of the gas tax to be repealed.
The proposal doesn’t include diesel.
A Minnesota House lawmaker has
introduced a bill that would suspend the state’s 20-cent-per-gallon tax on gasoline-based
fuels for six months. The same tax on diesel would remain intact.
A Republican gubernatorial hopeful
in New Hampshire is calling for a suspension of the state’s per-gallon tax on
diesel and gasoline for the summer.
Some Republican lawmakers in New Mexico have plans to push Democratic Gov. Bill Richardson to round up the Legislature
for a special session to discuss suspending the state’s tax on fuel. No
specific plan has been proposed and it is not known if any tax breaks would
include diesel fuel.
North Carolina Gov. Mike Easley, a
Democrat, has asked state lawmakers to cap the state’s per gallon tax on diesel
and gasoline so that the rate will not increase from the current level. The
state’s fuel tax can change every six months because a portion is set on recent
average wholesale prices. The next change could take place in July. House
Democrats also have plans to keep the fuel tax from increasing this year.
Democrats in the Texas House are
calling for a 90-day suspension of the state’s 20-cent-per-gallon tax on motor
fuels.
– By Keith Goble, state
legislative editor
keith_goble@landlinemag.com
