Caucus Press Release: House Approves Gas Tax Moratorium
May 10, 2006
SOUTH CAROLINA HOUSE OF REPRESENTATIVES
HOUSE REPUBLICAN CAUCUS / PRESS OFFICE
FOR IMMEDIATE RELEASE
House Approves
Gas Tax Relief Initiative
COLUMBIA -- The South Carolina House of Representatives unveiled and approved a plan Wednesday to suspend the state's 16-cent gas tax for three months this fall to return money to taxpayers. The plan was proposed after several weeks of discussion and research by Republican Caucus leaders.
Combined with the House's property tax relief legislation approved earlier this session, the gas tax suspension completes a package of relief initiatives to help South Carolina families. The suspension will be effective from October 1, 2006 to December 31, 2006 so state drivers receive the full benefit of the moratorium.
"This plan helps every resident of South Carolina," said House Speaker Bobby Harrell. "As our initiative moves from the House to the conference committee, the House will steadfastly support giving people both property tax relief and gas tax relief. We appreciate the governor's support of the plan."
Repealing the gas tax for three months will cost South Carolina approximately $100 million, according to initial estimates from the Board of Economic Advisors, which will be replaced using this year's budget surplus. Replacing the money is important because gas taxes are used to maintain the state's roads. The House also included more than $600 million in property tax relief in the 2006-2007 budget.
The gas tax repeal was approved as an amendment to the state budget that must now go to a conference committee with the state Senate. Afterward, the House Republican Caucus reiterated its commitment to providing a permanent solution to high property taxes by repealing operating property taxes from owner-occupied homes.
"We are sending gas relief and property tax relief to the Senate and we are committed to holding the line on returning the money to taxpayers," said Majority Leader Jim Merrill. "Our package of tax cuts the House approved this year will save South Carolinians thousands of dollars for years to come."
Rep. Alan Clemmons of Myrtle Beach, who first proposed the summer gas tax moratorium said: "Relief at the gas pump will be appreciated by all residents and visitors to our state and encourage a strong fall tourism season."
South Carolina has no power over gas prices outside the state gas tax, so House Republican leaders called on our national leaders to do everything possible in finding additional solutions to the high burden skyrocketing gas prices are having on every South Carolinian.
If the plan is approved by the Senate and the governor, House Republicans said Wednesday they will be vigilant in making sure gas stations in their districts pass along the 16-cent savings to drivers.
For More Information:
Speaker Bobby Harrell
(803) 734-3125
Majority Leader Jim Merrill
(803) 734-3138
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Click for a PDF copy of this press release.
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