July 1, 2013

Triangle Business Journal: N.C. gas tax rises to 37.6 cents a gallon

media mention

(Original Post)

 Jul 1, 2013, 3:57pm EDT

Logistics & Transportation

Chris Bagley

Staff Writer-

Triangle Business Journal

North Carolina increased its motor fuels tax to its second-highest level in history on Monday.

The increase was small, just one-tenth of a cent per gallon, but the 37.6-cents-per-gallon level is second only to the 38.9 cents per gallon that North Carolinians were paying in the first half of 2012.

The level changes twice a year in response to recent wholesale prices, which makes it more like general sales tax than most states’ per-gallon taxes. North Carolina’s is 17.5 cents per gallon plus a variable component; it applies equally to gasoline and diesel fuel.

California, Kentucky, Nebraska and Georgia also raised motor-fuels taxes on Monday in a similarly automatic fashion, according to the Institute on Taxation and Economic Policy. Gas taxes in Wyoming, Connecticut and Maryland rose Monday as the result of legislative actions, while Vermont and Virginia cut their gas taxes Monday.

Most states begin their fiscal years on July 1.

North Carolina’s fuels tax, while close to the national average, is the highest in the Southeast. Over the years, legislators have introduced various bills to limit it, but most have failed amid concerns that a limit could handicap the state’s ability to build roads.

Gov. Pat McCrory signed a broad overhaul of transportation funding formulas last week.

Jul 1, 2013, 3:57pm EDT
Logistics & Transportation
Chris Bagley
Staff Writer-
Triangle Business Journal
North Carolina increased its motor fuels tax to its second-highest level in history on Monday.
The increase was small, just one-tenth of a cent per gallon, but the 37.6-cents-per-gallon level is second only to the 38.9 cents per gallon that North Carolinians were paying in the first half of 2012.
The level changes twice a year in response to recent wholesale prices, which makes it more like general sales tax than most states’ per-gallon taxes. North Carolina’s is 17.5 cents per gallon plus a variable component; it applies equally to gasoline and diesel fuel.
California, Kentucky, Nebraska and Georgia also raised motor-fuels taxes on Monday in a similarly automatic fashion, according to the Institute on Taxation and Economic Policy. Gas taxes in Wyoming, Connecticut and Maryland rose Monday as the result of legislative actions, while Vermont and Virginia cut their gas taxes Monday.
Most states begin their fiscal years on July 1.
North Carolina’s fuels tax, while close to the national average, is the highest in the Southeast. Over the years, legislators have introduced various bills to limit it, but most have failed amid concerns that a limit could handicap the state’s ability to build roads.
Gov. Pat McCrory signed a broad overhaul of transportation funding formulas last week.

 


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