Widgetized Section

Go to Admin » Appearance » Widgets » and move Gabfire Widget: Social into that MastheadOverlay zone

Changes at the pump

On July 1 several tax changes will go into effect as part of the South Carolina Infrastructure and Economic Development Reform Act (“Act”) passed by the General Assembly during the 2017 legislative session. These changes are related to the Motor Fuel User Fee, Maximum Sales and Use Tax, and Infrastructure Maintenance Fee. The South Carolina Department of Revenue (SCDOR) is working to ensure a smooth implementation of these taxes for all taxpayers.“We are committed to assisting all South Carolina taxpayers in understanding, complying, and benefiting from this new legislation,” Hartley Powell, SCDOR director, said.Motor Fuel User Fee (Gas Tax)The Motor Fuel User Fee will increase 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.Upcoming Rate ChangesEffective Dates of Motor Fuel User Fee Increases Motor Fuel User Fee Per Gallon*July 1, 2017 – June 30, 2018 $0.18July 1, 2018 – June 30, 2019 $0.20July 1, 2019 – June 30, 2020 $0.22July 1, 2020 – June 30, 2021 $0.24July 1, 2021 – June 30, 2022 $0.26July 1, 2022 $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.Maximum Sales and Use Tax and New Infrastructure Maintenance FeeThe 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 InformationThe SCDOR has released Information Letter #17-8 to provide more guidance for portions of the Act effective July 1. For more details related specifically to the Motor Fuel User Fee and Maximum Sales and Use Tax, please visit dor.sc.gov/maxtax.  Coming This FallThe Act 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. The Department will release information this fall to assist taxpayers who want to claim this credit. Many of our training opportunities are free and are offered as an in-class workshop or a webinar. Check out our Taxpayer Ed site for more details. • August 2 – Sales Tax Workshop Free: In-class and Webinar• August 22 – Withholding Tax o Free: Webinar

Special to The Colletonian (1901 Posts)