@NCCapitol

@NCCapitol

NC gas tax will rise 1 cent New Year's Day

Posted December 15, 2014

— One of North Carolina's most griped about tax is fixing to go up a penny on Jan. 1. 

Drivers currently pay 36.5 cents for every gallon they pump into their cars, mopeds, minivans and such. That rate shifts to 37.5 cents per gallon next month.

The per-gallon gas tax rate is recomputed every six months using a flat fee of 17.5 cents plus a number that averages the per-gallon wholesale price of gas and diesel over six months.

Those who have been watching gas prices plummet this fall may be wondering why, given that price-per-gallon component, the state gas tax isn't also falling.

It's because the base period used for the calculation was April through September. As data from the online site GasBuddy.com shows, gas prices were just about to reach their highs for the year in April and didn't begin dropping until August. This fall's precipitous price drop didn't really take hold until late September. 

How high were gas prices this summer? High enough that, if the gas tax weren't capped under current law, the per-gallon tax would have bumped up another 0.2 cent to 37.7 cents per gallon on Jan. 1. 

Presuming there's not a huge spike in gas prices over the next three months, drivers should see North Carolina's gas tax dip when it's recomputed on July 1.

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  • Larry Lynch Dec 18, 2014
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    you are all for giving duke energy all kinds of breaks, an you sure didn't mind getting early listing to sell $100,000 thou + from that board you were sitting on, no siree -you didn't mind one bit.. how's about you doing the right thing and quit overpaying your yes boys [staffers, political appointee's] quit trying to save face with duke energy and instead hows about a lil tax RELIEF FOR THE AVERAGE PERSON IN NC? I JUST offered you free information that you prolly pay for-- problem is -- you wont act on it and that's why you will be a one and done gov nor, you really don't have the respect of the average voter here in nc.

  • Larry Lynch Dec 17, 2014
    user avatar

    hey gov nor mc --hows about you actually stepping up and representing the people and publically call for a rollback of say a nickel a gallon?

  • miseem Dec 16, 2014

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    Right. So I guess the renter cannot complain about the hole in the roof that the previous owner did not fix since it was a pre-existing condition. It's one thing to claim you didn't make any changes because you wanted to do a major revision of taxes and needed to work on a specific plan that would encompass all tax revenue in NC. But they did tinker with sales and income taxes. In fact, made some major changes in sales tax. They just decided that they were not going to fix the hole caused by the old cap on sales tax for yachts, even though it was brought to their attention early in the session. And they had all sorts of options in acting on that tax, from a slight increase to a repeal. So I do blame them for putting an additional sales tax on a necessity (electricity) and doing nothing about the sales tax on a luxury (yachts and airplanes). And I do not find my position disingenuous.

  • Deb Rodgers Dec 16, 2014
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    Or MD...or DE!

  • Deb Rodgers Dec 16, 2014
    user avatar

    Let me remember, this morning on the news...gas is down .13 a gallon w/in the last week. So, adding .01 to a gallon still has me .12 cents ahead. If a penny will fix our roads, I'm all for it...BTW, PLEASE...let the money be used for roads and not be pilfered by any governor! Bev was a pro at doing that!

  • Arthur Raleigh Dec 16, 2014
    user avatar

    What? Repblicans give a tax break to the rich and passed on the extra taxes to pay to the everyday man!

  • iopsyc Dec 16, 2014

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    Agree to disagree. It's a situation full of nuance. They did not take action to lower the gas tax cap (or modify the formula) when they made so many other tax changes, but I wouldn't call the increase in the gas tax their fault.

    It's much like the political ad that made the yacht loophole seem like a new thing. I find it disingenuous to blame them for a pre-existing condition.

  • notexactly Dec 16, 2014

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    And cheaper than any other state that has gas taxes and tolls. See what it will cost you to drive through nj and see how you like that. it costs you more in tolls than it does in gas to drive that stretch of road. Do you want that here?? If so why?

  • notexactly Dec 16, 2014

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    I guess you think the wealthy don't buy gas. wow

  • notexactly Dec 16, 2014

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    Funny when the dems are in control, you guys are all about taxes going up. Shows how wishy washy you guys are. I like the gas tax cause everyone pays into the kiddy. everyone got a tax cut this year no matter who you are. I think we should do away with income taxes and do a flat tax. that way all people pay into the system and the ones not paying at all have some skin in the game. If you remember back when the dems were in charge they could have capped the tax back then as well and did nothing. I would rather pay a penny more per gallon than get ripped off by tolls like the north does. factor that in and you will agree. My friend went to philly last month and paid a fortune in tolls. way more than any gas tax is. Some people are just not to smart

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