SC lawmakers propose bill that would suspend state’s gas tax

COLUMBIA, S.C. (WIS) - As gas prices climb across South Carolina, two state lawmakers are proposing a temporary pause on the state’s gas tax in an effort to give drivers financial relief.

AAA reports the average price for a gallon of regular gas in South Carolina is now $3.65 — roughly a dollar higher than it was a month ago. Twenty‑eight cents of that average comes from the state’s gas tax.

Sen. Russell Ott, a Democrat from Calhoun County, said he plans to file a joint resolution this week to temporarily suspend the tax as prices remain elevated.

“People are hurting right now,” Ott said. “I think this is the one thing we can do as state policymakers — state leaders — to try and help our constituents out.”

Ott’s proposal would suspend the gas tax for 30 days and then extend the suspension for an additional 30 days if fuel prices do not drop by at least 15 percent. He said recent spikes — which he attributed partly to the ongoing conflict in Iran — are putting significant strain on families.

“People are struggling right now,” he said. “Anytime you have a spike in gas prices like we’ve been experiencing for the last three to four weeks … it puts a huge strain on people.”

Similar proposals have surfaced in the past but have never made it through the General Assembly. The state gas tax provides a major revenue stream for the South Carolina Department of Transportation, which uses it to fund road maintenance and infrastructure projects. State data shows the tax generated roughly $90 million in January.

In response to the proposal, SCDOT said a tax suspension would affect ongoing and planned work unless lawmakers replace the lost revenue.

“A suspension of the gas tax would impact SCDOT projects and programs unless that money is replaced with another source of funding,” the agency said in a statement. “The extent of that impact would be dependent on a variety of factors, including the length of the suspension.”

Rep. Mark Smith, a Republican from Berkeley County, is also filing legislation this week supporting a 30‑day gas tax suspension.

“Government shouldn’t sit on the sidelines while people are struggling,” Smith said in a statement. “We have an opportunity to act — and we should.”

Ott acknowledged that SCDOT would feel the financial impact of the proposal, but said state reserves could be used to temporarily fill the gap, and that’s why the state has reserves.

A spokesperson for Gov. Henry McMaster said the governor will review the legislation if it reaches his desk. The Senate Republican Caucus said it would not comment on the proposal at this time.

“The proposal to suspend the state gas tax for 30 days is at the beginning of the legislative process, and Governor McMaster will review the legislation should it reach his desk.”

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