Both local Republican state legislative members Karl Gillespie and Kevin Corbin joined the majority in voting Wednesday to temporarily suspend North Carolina’s 41-cent-per-gallon motor fuels tax through November 30.
The governor signed the bill today and it is now law.
“For a family filling up the car to get to work and school or a farmer putting fuel in the equipment needed to work their fields, every cent at the pump adds up,” said Gillespie, the local state representative. “This legislation provides some much-needed relief for the people who keep our communities moving and our farms operating, while continuing to protect the funding we need for our roads and bridges.”
State Senator Corbin posted on Facebook, “I was very happy to have co-sponsored this bill and the gas tax holiday has passed the General Assembly. This bill delivers relief for families, farmers, and businesses across the state who are grappling with high gas and diesel prices.”
Paying for the suspension
Called the Relief at the Pump Act, the vote removes 41 cents per gallon from the cost of gasoline and diesel by suspending the state tax. This suspension will cost just over $350 million.
Legislators say they covered this amount by backfilling an appropriation from the state’s savings reserves. Corbin added that the money was already “set aside for a ‘rainy day.'”
While the legislation provides temporary relief for North Carolina families, farmers, and businesses by lowering the cost of fuel at the pump, it also takes steps to ensure transportation projects and infrastructure investments across the state can continue during the suspension.
The tax
With a fuel inspection fee included, North Carolinians pay 41.25 cents per gallon in state taxes. The quarter cent addition to the overall fuel tax pays for the state’s fuel quality inspections and motor-fuel tax laws. Any leftover funds are distributed to the state’s bridge fund.
Currently, according to the Tax Foundation, North Carolina charges one of the highest gas taxes in the South, and the 10th highest in the nation.
| State | Tax per gallon |
|---|---|
| Virginia | 42.40¢ |
| North Carolina | 41.25¢ |
| Florida | 40.10¢ |
| West Virginia | 35.70¢ |
| Georgia* | 34.05¢ |
| Alabama | 31.00¢ |
| South Carolina | 28.75¢ |
| Tennessee | 27.40¢ |
| Kentucky | 26.40¢ |
| Arkansas | 25.00¢ |
| Mississippi | 24.40¢ |
| Louisiana | 20.93¢ |
| Texas | 20.00¢ |
The legislation also allows farmers to use dyed diesel in highway vehicles for agricultural purposes, providing additional savings for North Carolina’s agricultural community.
