If you’re in the market for a new car, you now face a higher tax in South Carolina.
New and increased state fees and taxes went into effect this past weekend thanks to an effort to improve South Carolina’s highways and bridges.
While state legislators technically eliminated the sales tax on vehicles as part of road funding legislation, they actually converted the previous $300 cap to a $500 maximum “Infrastructure Maintenance Fee.”
The new IMF would consist of a five percent tax on new vehicles, up to $500 total. In other words, any car, truck, motorcycle or boat bought for less than $10,000 would have a five percent fee. Any vehicle bought for $10,000 or more would have a total $500 fee.
And you may have noticed a slight bump in gas prices. That’s due to a two cents per-gallon increase in the tax. The tax will continue to go up two cents a gallon each year for the next five years.
There is a tax credit to offset the cost of the gas tax increase. Individuals who want to take advantage of it will have to keep the receipts every time they buy gas. But those credits cannot be claimed until the 2018 tax year. So that means drivers should not begin keeping track of their gas purchases for credit purpose until Jan. 1.
A new $250 fee for people moving to South Carolina to register their vehicles is now in place. Active military and their immediate family members are exempt.