Gas tax cap his speed bump

Posted November 28, 2011

An attempt by House Republicans to cap the state’s gas tax hit a speed bump tonight. The Senate plans to leave just after midnight without taking up the proposal.

The tax is scheduled to rise by nearly 4 cents per gallon in January. The House proposal would cap it at its current level till July 1, 2012.

The resulting loss of revenue to the DOT would be $95 million.

On the House floor, critics of the cap said it would cost jobs, both in the DOT and among private contractors who build the road projects that money would fund. One estimate put the number of contractor jobs alone at 2800.

But supporters argued that allowing the tax to rise would cost jobs, too, as businesses struggle to stay in the black despite the recession. “This is jobs on either side,” said Rep, Ruth Samuelson, R-Mecklenburg.

Rep. Bill Owens, D-Pasquotank, said many lawmakers on both sides of the aisle knew the cap would be a bad policy decision, but they voted for it anyway, foreseeing campaign attack ads in 2012. “If we had a secret ballot right now, there’d be about 100 of you voting with me. And you know it’s true,” Owens said.

House Minority Leader Joe Hackney agreed, though he stopped short of asking Democrats to oppose the cap. “We know a political exercise when we see one, and I think that’s what this is,” he remarked dryly.

The bill is scheduled for a third reading Tuesday.

Senate: “No further business”

That third reading may be a moot point, since the Senate decided tonight to adjourn just after midnight Tuesday – before the gas tax cap even gets to their chamber.

“We’re doing no further business other than adjourning,” Senate Leader Phil Berger confirmed Monday night.

Berger and other Senate Republicans have been much less enthusiastic than their House counterparts about the cap proposal. But leaving town before they even get the bill is a pretty strong statement of disapproval.

Berger explained Senate leaders' thinking to reporters.  

“Taking up the gas tax at this time - in essence what you do is, you’re going into the budget and you’re arbitrarily cutting a number of projects that are out there. So you’re talking about cutting jobs, you’re talking about reducing funds that will be available to do things, and you’re deferring to the executive branch to make a decision as to which ones,” Berger said.

“Now is not the time for us to be dealing with that issue. The short session, when we can look at it in a comprehensive fashion, and we can actually cut the gas tax – not just cap it, but we should be able to cut the gas tax - without adversely impacting the projects that are already in the pipeline.”

“The House has had since January to deal with this issue,” Berger continued. “They’ve not dealt with it. They come up with this on a day like – on this day, at a time when we are slated to leave tomorrow. They don’t have it over to us.”

“We just don’t feel this is an appropriate time to deal with this, to reopen the budget,” Berger concluded. “We’ll deal with it, and we’ll deal with it in an appropriate fashion, during the short session.”

The General Assembly is not scheduled to meet again until February, at which the time the gas tax increase would have already taken effect. However, they could come back into town next month if the Governor calls them back to respond to a veto or for a special session on the Indian gaming proposal lawmakers didn’t get to this week.


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  • marktroll Nov 30, 2011

    and show me any evidence that fleet companies will or have cut jobs in NC from the gas tax increased that were passed by democrats last session.

  • marktroll Nov 30, 2011

    @lj, what about the scheduled bridge maintenance and loss of jobs from the money you would have cut off, that was already scheduled?

  • ljblackburn Nov 30, 2011

    The increased tax may only mean $7 or $8 for individuals, but what about the businesses who depend on fleets of vehicles? Fed-X, UPS, Cintas come to mind. These are (some of) the jobs that will be lost if the tax increase stands.

  • Boot-the-DC-Tyrant Nov 30, 2011

    WOW! Please continue to tax us into oblivion. That's all I ask. I dont deserve what I work for. You, the gov't, does.

  • sku01pt Nov 30, 2011

    "The resulting loss of revenue to the DOT would be $95 million" if they never got it to begin with how is a loss?hummmm FUZZZZZY MATH.

  • marktroll Nov 30, 2011

    the gas tax funds road maintenance and projects. the maintenance and projects have now been started and count on the money from the (ALREADY SCHEDULED FROM LAST LEGISLATIVE SESSION) increase, and wont be finished if the process is interrupted. Capping the gas tax would save the average driver $8.00 this year. And capping it would cost a few thousand maintenance and project jobs, because the money for these projects would dry up. Finish the work, then cap the tax.

  • hp277 Nov 30, 2011

    "If the tax on gas goes up everytime there is a raise in gas prices, does that mean it goes down when gas prices go down again? If not, we are getting ripped off-AGAIN!"

    Yes - It does go down if the wholesale price drops. It is based on the average price over a 6 month period.

  • Obama 2012 Nov 29, 2011

    So how does the gas tax affect jobs? Gas could be free but I'd still be out a job because no one, including the gov't is hiring.

  • geaton Nov 29, 2011

    If the tax on gas goes up everytime there is a raise in gas prices, does that mean it goes down when gas prices go down again? If not, we are getting ripped off-AGAIN!

  • babedan Nov 29, 2011

    How can capping the gas tax mean job losses? Capping it would mean status quo right? Which mean projects already on the table should be fully funded. It may mean a couple of future projects may be delayed by say 6 months, but there is no way you can say it would lose jobs, unless the budget was passed with this increase in mind and they entire NC congress is dupping everyone. Sounds like kickbacks to me.