South Carolina’s $400 million road funding proposal would not require increase in state’s gasoline tax.

The South Carolina state Senate on Wednesday approved a road bill that would dedicate $400 million a year of recurring revenue to highway upgrades without raising the state's gasoline tax.

The Senate rejected a proposal by Sen. Hugh Leatherman, a Republican who chairs the Senate Finance Committee, to use $200 million per year of the recurring revenues to support $2.2 billion of bonds for interstate highway upgrades.

The Senate measure amends an infrastructure bill approved by the House that included a 10 cent per gallon increase in the South Carolina's 16 cent per gallon gasoline tax, which is one of the lowest in the U.S. The tax generates about $480 million per year.

Gov. Nikki Haley asked for the gasoline tax increase in her executive budget for fiscal 2017, but said this week that she favors the Senate plan.

Subscribe Now

Independent and authoritative analysis and perspective for the bond buying industry.

14-Day Free Trial

No credit card required. Complete access to articles, breaking news and industry data.