A state agency predicts local taxpayers will claim the maximum gas tax credit.

This income tax credit is to offset the gas tax hike.

But many taxpayers may not bother because of the paperwork involved.

For last year’s income tax filings, the SC Revenue and Fiscal Affairs Office projected a maximum-allowed $40 million in gas tax credits would be claimed.

But Department of Revenue records show $2 million was claimed – nearly $38 million less.

That was an average credit of $24.37 per tax return.

Despite that huge gap, DOR estimated state taxpayers this year would claim the maximum-allowed $65 million in credits.

DOR said taxpayers may not have claimed the credit if they failed to keep their receipts or if they deemed the credit too small to be worth the effort required.

Some may have had difficulty with electronic tax preparation software.

The gas-tax-hike law raised the state gas tax 12 cents over 6 years – a 75% jump from the base 16 cents – and increased other vehicle taxes and fees.

The eligible credit per taxpayer is equal to whichever is lesser: the increase in gas taxes paid for each allowed vehicle “preventative maintenance” costs, such as new tires and oil changes.

The credit is available for no more than 2 qualifying private-passenger vehicles or motorcycles per taxpayer.

To claim the credit you must keep fuel receipts or credit card statements to show the number of gallons bought in the tax year.

DOR says you must multiply the total gallons you bought in 2019 in South Carolina for each qualifying vehicle by 5 cents, the average increase in 2019, then multiply that by 76.8%.

In 2018, 78,084 out-of-state vehicles were registered in SC, generating $19.5 million in fees to offset the tax credits.

Last year, 82,985 out-of-state vehicle owners paid $20.7 million in fees.

Since the law took effect, the state has made few major repaving or road construction projects yet sits on $505.5 million in reserve.

Brundrett is news editor of The Nerve www.thenerve.org . Contact him at rick@thenerve.org .