On Jan. 1, North Carolina is raising its motor fuel tax by nearly 3 cents a gallon -- the largest increase in 16 years -- raising the state's tax to 29.9 cents per gallon. Officials say the tax hike is based, by law, on wholesale prices.
About 17.5 cents of the current 27 cent tax is a flat rate. There is also a variable rate that increases when the price of gas increases, which changes every six months based on the price of gas during that period.
North Carolina has the fifth-highest gas tax in the nation and the highest in the South. For example, Virginia's gas tax is 17 cents a gallon and South Carolina's is 16 cents a gallon, while North Carolina motorists currently pay 27 cents a gallon.
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