For the third consecutive year, South Carolina's Motor Fuel User Fee, which helps support road, bridge, and infrastructure work in South Carolina, will increase from $0.20 to $0.22 per gallon beginning July 1.
The increase is part of the South Carolina Infrastructure and Economic Development Reform Act passed by the General Assembly in 2017, which raises the fee by $0.02 each July until 2022.
Motor Fuel User Fee Rate Changes|
Effective Dates ||
Fee Per Gallon*|
|July 1, 2017 – June 30, 2018||$0.18|
|July 1, 2018 – June 30, 2019||$0.20|
|July 1, 2019 – June 30, 2020||$0.22|
|July 1, 2020 – June 30, 2021||$0.24|
|July 1, 2021 – June 30, 2022||$0.26|
|July 1, 2022 and after||$0.28|
*This number does not include the inspection fee ($0.0025) and the environmental impact fee ($0.005) which have not changed and are still applied to motor fuel.
From July 1, 2017, when the Motor Fuel User Fee first increased, through April 2019, more than $657 million has been deposited in the state Infrastructure Maintenance Trust Fund, including $185.3 million in increased Motor Fuel User Fee revenues, according to figures from the South Carolina Department of Transportation.
Motor Fuel Income Tax Credit
Beginning in 2019 for the 2018 tax year, South Carolina taxpayers can claim a credit for the lesser of the maintenance fees they paid during the year on their vehicles or what they paid in the increased Motor Fuel User Fee.
Preliminary SCDOR data shows that 120,585 taxpayers took advantage of the credit this year, receiving $1.8 million in credits, below the $40 million cap set by lawmakers for the credit's first year.
The average credit per return was $23.65, while the average credit per taxpayer was $15.21, according to the data. The average credit is expected to rise next year because of the increased Motor Fuel User Fee.
The SCDOR released
Information Letter #17-8 to provide more guidance for portions of the Act effective July 1, 2017. For more details on the Motor Fuel User Fee and Income Tax Credit, visit