North Carolina House approves temporary suspension of state gas tax

RALEIGH, NC (WWAY) — The North Carolina House has approved legislation that would temporarily suspend the state’s 41-cent-per-gallon tax on gasoline and diesel through Nov. 30.

The House approved the Relief at the Pump Act on Wednesday during a special session of the General Assembly called to consider fuel tax relief.

Under the proposal, the state’s motor fuels tax would be suspended through the end of November.

The legislation would also use money from the state’s Inflation Reserve to replace revenue that would otherwise go to the North Carolina Department of Transportation’s Highway Fund and Highway Trust Fund during the suspension.

The motor fuels tax is a significant source of funding for road construction and maintenance in North Carolina. The temporary suspension is expected to reduce transportation revenue by about $360 million, according to reporting from WUNC. The proposal calls for replacing that revenue with reserve funding.

The bill also includes provisions affecting farmers during harvest season. It would allow eligible farmers to use dyed diesel fuel in highway vehicles for agriculture-related purposes without penalties and without owing state fuel taxes on that fuel.

Supporters of the proposal say temporarily suspending the tax would provide relief to drivers, farmers and businesses facing higher fuel costs.

“People are paying far too much to commute to work, drop their kids off at school, and run basic errands. Our duty is to help where we can and make everyday life more affordable, especially with travel holidays approaching. By suspending the gas tax, we’re relieving some of the cost pressures on working families,” Rep. Mike Schietzelt, R-Wake, said in a statement.

Rep. Allen Chesser, R-Nash, said the provisions involving dyed diesel are intended to help farmers facing higher operating costs during harvest season.

“Farmers can’t stop their tractors because diesel is too expensive. They still need to harvest their crops and get them to market. And when it costs more to operate equipment, those costs get passed along to folks when they checkout with their groceries. Every gallon of fuel matters to farmers this time of year, and this bill makes it easier for them to make a good living growing the food we all need,” Chesser said.

The proposal comes as the General Assembly holds its first extra session of 2026 to consider state tax relief on gasoline and diesel fuel.

The legislation must complete the legislative process before the proposed tax suspension can take effect.