Temporary gas tax suspension could mean savings for NC drivers
RALEIGH, NC (WWAY) — North Carolina lawmakers are moving forward with a plan to temporarily suspend the state’s 41-cent-per-gallon gas tax through the end of November.
The North Carolina General Assembly met Wednesday in Raleigh to outline the proposal, which would temporarily halt the state’s gas tax.
Senate leader Phil Berger said the bill would also use the state’s inflation reserve to make up for any loss in transportation revenue.
Sen. Michael Lee said that is exactly what the reserve was created for.
“I was talking to Sen. Jackson before this, and he was talking to me about 2011, when we had less than $100 million in the rainy-day fund,” Lee said. “The fact that we now have over $6 billion in reserves enables us to not only be able to do this today for families, but this is after we’ve already provided two billion dollars in assistance for Hurricane Helene.”
The North Carolina Department of Transportation said a 30-day suspension of the gas tax could result in an estimated $225 million loss in revenue for the department.
“NCDOT is aware and monitoring discussions on suspending the state’s motor fuels tax. Our preliminary estimates show that a 30‑day pause could create about a $225 million loss for the department. The state motor fuels tax produces about 40% of state-generated transportation revenue. It funds highway and other transportation construction projects and the maintenance and operations of our transportation systems. The department remains committed to connecting people and products safely and efficiently. The department will work closely with the General Assembly and provide information about potential impacts.”
Drivers have mixed opinions about the proposal.
One resident, who asked not to appear on camera, said the temporary savings would be helpful, especially for college students who commute.
“Especially as a university student, sometimes the commute can definitely add up. So I think that savings, as temporary as it may be, it would greatly help,” the resident said.
Another resident questioned the timing of the proposal, suggesting it could be politically motivated ahead of the midterm elections.
“They’re only doing this till November. They’re not making a permanent change. So it’s obvious what they’re doing. They’re trying to look good. Save us a buck for now. And then they’re going to jack it right back up,” the resident said.
The House and Senate approved the bill. It now heads to Gov. Josh Stein’s desk for consideration
