The new year will bring new revenues from out-of-state medium and heavy-duty truck operators using the state’s roads.
The property tax paid on large commercial vehicles has been renamed a “Road Use Fee,” and effective this year, will be extended to interstate trucking operations passing through South Carolina. This new revenue will be earmarked for interstate capacity expansions.
“By adding what is effectively a property tax to truckers’ South Carolina road-use fees, these non-South Carolina-based fleets will now be paying a third tax on top of registration fees and fuel taxes,” says Rick Todd, president of the South Carolina Trucking Association. “Because it is incorporated into existing tax-reporting processes, we consider it an effective and efficient way to collect more revenue from interstate fleets, certainly better than tolling.”
Interstate trucking operations pay every state’s fuel taxes depending on how much fuel they burn while in a state, regardless of where they buy it. They also pay a proportional share of the state’s registration fee.
South Carolina’s big truck tag fees can be as high as $800 annually, and like the new road-use fee, they are .owed depending on the percentage of miles they run in each state. Interstate fleets track and report their mileage and pay each state accordingly through their home state’s tax and registration agencies.
The previous system required the Department of Revenue to send out property tax forms and fleets had to self-report and pay. Out-of-state fleets with no physical facilities in the state paid no property taxes. The Department of Motor Vehicles is incorporating this fee administration process into their current processes, completing the one-stop-shop service conversion for commercial trucking businesses