As of July 1, several tax changes are now in effect as part of the South Carolina Infrastructure and Economic Development Reform Act passed by the General Assembly during the 2017 legislative session. These changes are:

  • The Motor Fuel User Fee
  • Maximum Sales and Use Tax
  • Infrastructure Maintenance Fee

Motor Fuel User Fee (Gas Tax)

The Motor Fuel User Fee increased from $0.16 to $0.18 per gallon of fuel. The fee will continue to increase by $0.02 per gallon on July 1 every year until 2022. All sales of fuel subject to the Motor Fuel User Fee, such as gasoline or diesel, are subject to these rate increases.

Effective Dates of Motor Fuel User Fee Increases

Motor Fuel User Fee Per Gallon*

July 1, 2017 - June 30, 2018


July 1, 2018 - June 30, 2019


July 1, 2019 - June 30, 2020


July 1, 2020 - June 30, 2021


July 1, 2021 - June 30, 2022


July 1, 2022


*Note: 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.

Maximum Sales and Use Tax and New Infrastructure Maintenance Fee

The Maximum Sales and Use Tax will increase for most items from $300 to $500 and is remitted to the SCDOR. The tax is charged on the sale or lease of items such as boats, airplanes, and self-propelled light construction equipment.

Some items previously subject to the Maximum Sales and Use Tax, such as motor vehicles and motorcycles, will instead be subject to an Infrastructure Maintenance Fee to be remitted to the South Carolina Department of Motor Vehicles (SCDMV). Businesses and individuals who need more information on this fee should contact the SCDMV.

More Information

The SCDOR Information Letter #17-8 provides more guidance for portions of the Act that were effective July 1. For more details related specifically to the Motor Fuel User Fee and Maximum Sales and Use Tax, please visit

Coming This Fall

The Act also establishes a new refundable income tax credit which goes into effect January 2018. Taxpayers will be able to claim the credit when filing their income tax returns in 2019. SCDOR will release information this fall to assist your clients who want to claim this credit.

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