NC's 41-cent gas tax pause awaits Gov. Stein's signature Friday
North Carolina lawmakers voted to suspend the state's 41-cent-per-gallon tax on gasoline and diesel through Nov. 30, and Gov. Josh Stein is expected to sign the measure Friday. Drivers may not see lower prices immediately. The state will draw roughly $362 million from a reserve account to replace the lost transportation revenue.
North Carolina drivers could soon pay less at the pump, although the savings probably will not arrive right away.
State lawmakers passed the Relief at the Pump Act during a special session Wednesday, pausing the 41-cent-per-gallon tax on gasoline and diesel through Nov. 30. Gov. Josh Stein is expected to sign the bill Friday, WCCB Charlotte reported.
The vote was lopsided, with the Senate approving it 41-0 and the House 111-1, The Center Square reported in a story carried by the Watauga Democrat.
Prices remain high: AAA put North Carolina's average at $4.12 for regular gasoline and $5.99 for diesel on Wednesday.
Savings may take time to reach drivers. Rep. Donnie Loftis, a Gaston County Republican who sponsored the bill, said fuel already sitting in station tanks was taxed at the old rate. Lower prices will appear when new shipments arrive, he told WCCB, probably sooner in cities than in rural communities. The Center Square noted it is unclear whether prices will drop by the full 41 cents.
Because the gas tax pays for road construction and maintenance, the state will draw from a reserve account to fill the gap. Sen. Phil Berger Jr. put the cost at about $362.3 million, with about $518 million in the account. State Treasurer Brad Briner said the state's $11 billion in reserves means it "can more than afford it," Carolina Journal reported.
The bill also lets farmers use cheaper dyed diesel in highway vehicles for farm work without penalty through Dec. 31.
The timing, just weeks before the midterm elections, drew criticism from Democrats. Stein said he was glad drivers would get relief but added, "I wish it didn't take the election season to get this attention." Rep. Jordan Lopez, a Mecklenburg County Democrat, voted yes but called the Republican-led action performative. Loftis said politics was not the motivation.
Georgia, Indiana and Ohio have taken similar steps this year, according to The Center Square.
What we know: The 41-cent tax pause runs through Nov. 30 once Stein signs.
What we don't: How fast and how much pump prices will fall.
Where outlets agree WCCB Charlotte and The Center Square both report the suspension runs through Nov. 30 and that AAA put the state average at $4.12 for gas and $5.99 for diesel.
Where they differ The outlets cited here report the same key facts so far.