5/9/05-A bill in the Senate that would charge oil companies serving fuel stations in the state a 5 percent franchise fee to help pay for road work is likely dead.
The bill failed to meet a May 1 deadline to pass the Senate. Now it will take a two-thirds vote by senators in favor to be considered.
Sponsored by Sen. Scott Richardson, R-Hilton Head, it would raise $268 million a year for the South Carolina Department of Transportation.
Intended as an alternative to raising the state’s fuel tax on drivers, the 5-percent fee would be charged monthly to companies based on the amount of fuel sold to fuel stations, with the revenue earmarked for road improvements.
While the state’s fuel tax is paid at the pump, the franchise fee would be charged to about 45 oil companies doing business in the state.
If the bill somehow passes, half of the money generated through the franchise fee, about $134 million a year, would go toward repairs, with a primary focus on repaving roads.
The other $134 million would go toward the state’s larger road improvement projects.
S101 also would allow SCDOT to sell bonds earmarking the franchise fee as a steady revenue source.
Richardson’s proposal would require road dollars be spread out around the state.

1/26/05-A bill in the Senate Finance Committee would charge oil companies serving fuel stations in the state a 5 percent franchise fee to help pay for road work.
The bill, offered by Sen. Scott Richardson, R-Hilton Head, would raise $268 million a year for the South Carolina Department of Transportation.
Intended as an alternative to raising the state’s fuel tax on drivers, the 5-percent fee would be charged monthly to companies based on the amount of fuel sold to fuel stations, with the revenue earmarked for road improvements.
Half of the money generated through the franchise fee, about $134 million a year, would go toward repairs, with a primary focus on repaving roads.
The other $134 million would go toward the state’s larger road improvement projects.
S101 also would allow SCDOT to sell bonds earmarking the franchise fee as a steady revenue source.
Richardson’s proposal would require road dollars be spread out around the state.
For bill status, call (803) 734-2060.
A similar House bill – H3220 – is in the House Ways and Means Committee.