Fuel tax of 41 cents suspended through Thanksgiving
By Alan Wooten | The Center Square
Affects local / State – North Carolinians and others filling up at the state’s pumps for gasoline and diesel fuel are getting a break on the 41 cents per gallon tax.
Effective immediately through Nov. 30, Relief at the Pump (House Bill 3 of first extra session) was signed into law on Friday by first-term Democratic Gov. Josh Stein. Only one Guilford County Democrat was opposed to the legislation in approvals of 41-0 in the Senate and 111-1 in the House of Representatives on Wednesday in a called extra session.
“Rising grocery, utility, and gas prices are making the costs too high for people across our state,” said Stein. “I am signing this bill to keep more money in people’s wallets, but this temporary relief is just one step. I remain committed to continuing to work with anyone who wants to make everyday living more affordable all year long – not just during election season.”
The corresponding consequence is a loss of revenue for money used to help maintain highways through the state Department of Transportation, and lawmakers addressed that in the bill language. The state’s Stabilization and Inflation Reserve account will replace the fuel tax revenue that the state Department of Transportation’s Highway and Highway Fund would otherwise receive during the suspension period.
An estimated $362.3 million is in play, according to Rockingham County 13th term Sen. Phil Berger Jr. He also said the account to draw from has a balance of about $518 million available. First-term Republican state Treasurer Brad Briner, in published reports, said $11 billion in reserves means the amount would not negatively impact the state’s top-level credit rating.
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House Speaker Destin Hall, R-Caldwell, said, “Hardworking North Carolinians need relief at the gas pump, and help is on the way. Years of responsible budgeting have put North Carolina in a position to provide meaningful relief when families need it most, and pausing fuel taxes is another way House Republicans are working to make our state more affordable for everyone.”
It is unclear how soon the prices at the pumps would drop. Also unclear is whether prices will be an exact 41-cent decrease.
Friday morning, AAA reported the state average at $5.98 for a gallon of diesel fuel and $4.09 for regular unleaded gasoline. National averages are $6.27 and $4.37, respectively. Thirteen states are lower for diesel fuel, 14 are lower for unleaded gasoline.
In a release, Wilson Republican Sen. Buck Newton said, “Elected officials are hearing from hardworking North Carolinians every day who are feeling the strain of rising fuel costs. For the last 15 years, Republicans in the General Assembly have been good stewards of your tax dollars, which allows us to provide you relief at the pump.”
Similar steps have been taken this year by Georgia, Indiana and Ohio.
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Alan Wooten has been a publisher, general manager and editor. His work has won national or state awards in every decade since the 1980s. He’s a proud graduate of Elon University and Farmville Central High in North Carolina.
The Shelby Independent.
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