South Carolina H 5331: Gasoline User Fee

Bill Text

2025-2026 Bill 5331 Text of Previous Version (Mar. 05, 2026) - South Carolina Legislature Online 

South Carolina General Assembly
126th Session, 2025-2026

Bill 5331

Indicates Matter Stricken
Indicates New Matter

(Text matches printed bills. Document has been reformatted to meet World Wide Web specifications.)

A bill

TO AMEND THE SOUTH CAROLINA CODE OF LAWS BY AMENDING 
SECTION 12-28-2740, RELATING TO the DISTRIBUTION OF GASOLINE USER FEEs AMONG 
COUNTIES and REQUIREMENTS FOR EXPENDITURE OF FUNDS SO AS TO INCREASE THE AMOUNT 
OF THE GASOLINE USER FEE AND TO DELETE A PROVISION REQUIRING A PERCENTAGE OF 
"C" FUNDS BE EXPENDED ON THE STATE HIGHWAY SYSTEM.

Be it enacted by the 
General Assembly of the State of South Carolina:

SECTION 1. Section 12-28-2740 (A), (C), and (S) of the S.C. Code 
is amended to read:

 (A) The proceeds from two and sixty-sixfive and 
ninety-nine one-hundredths cents a gallon of the user fee on gasoline 
only as levied and provided for in this chapter must be deposited with the 
State Treasurer and expended for purposes set forth in this section. The monies 
must be apportioned among the counties of the State in the following manner:

 (1) 
one-third distributed in the ratio which the land area of the county bears to 
the total land area of the State;

 (2) 
one-third distributed in the ratio which the population of the county bears to 
the total population of the State as shown by the latest official decennial 
census;

 (3) 
one-third distributed in the ratio which the mileage of all rural roads in the 
county bears to the total rural road mileage in the State as shown by the 
latest official records of the Department of Transportation. The Department of 
Revenue shall collect the information required pursuant to Section 12-28-1390 
regarding the number of gallons sold in each county for use in making 
allocations of donor funds as provided in subsection (H). The Department of 
Revenue shall submit the percentage of the total represented by each county to 
the Department of Transportation and to each county transportation committee 
annually by May first of the following calendar year. Upon request of a county 
transportation committee, the Department of Transportation shall continue to 
administer the funds allocated to the county.

 All interest earnings 
on the County Transportation Fund in the State Treasury must be added to the 
distribution to counties under this section in proportion to each county's 
portion of the entire County Transportation Fund. Except for those funds being 
used in connection with highway projects administered by the Department of 
Transportation on behalf of counties administering their own "C" funds, these 
distributions of earnings and the calculation required to determine the 
appropriate amount shall not include those counties administering their own "C" 
funds.

 (C) 
At least twenty-five percent of a county's apportionment 
of "C" funds, based on a biennial averaging of expenditures, must be expended 
on the state highway system for construction, improvements, and maintenance. 
The Department of Transportation shall administer all funds expended on the 
state highway system unless the department has given explicit authority to a 
county or municipal government or other agent acting on behalf of the county 
transportation committee to design, engineer, construct, and inspect projects 
using their own personnel. The county transportation committee, at its 
discretion, may expend up to seventy-five percent of "C" construction funds for 
activities including other local paving or improving county roads, for street 
and traffic signs, and for other road and bridge projects.Reserved.

 (S) Notwithstanding the provisions 
of subsection (A), on July 1, 2018, and each July first thereafter until after 
July 1, 2021, the amount of proceeds of the user fee on gasoline only as levied 
for in this chapter that must be deposited with the State Treasurer and 
expended for the purposes of this section must be increased by .3325 cents a 
gallon, until such time as the total amount equals three and ninety-nine 
one-hundredths cents a gallon. Any increase in proceeds resulting from the 
provisions of this subsection must be used exclusively for repairs, 
maintenance, and improvements to the state highway system.

SECTION 2. This act takes effect upon approval 
by the Governor.

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This web page was last updated on March 05, 2026 at 12:06 PM