RALEIGH – North Carolina lawmakers approved a temporary suspension of the state motor-fuel tax Wednesday, sending the measure to Gov. Josh Stein after a one-day extra session.
The legislation would set the tax rate at zero beginning the day after it becomes law and continuing through Nov. 30. The bill says consumers should receive the savings from the suspension, while allowing retailers to account for fuel purchased before the tax holiday took effect.
The House approved the measure 111-1, and the Senate passed it 41-0. The General Assembly’s bill history shows the measure was ratified and presented to the governor Wednesday.
The measure also directs the state to replace the forgone revenue with money from the Stabilization and Inflation Reserve. The transfers would hold harmless the Highway Fund, Highway Trust Fund and several other accounts that normally receive motor-fuel tax distributions.
A separate section addresses dyed diesel fuel used for farming and other agricultural purposes. Through Dec. 31, the bill would waive specified civil and criminal penalties for highway use of dyed diesel tied to agriculture. It also provides a tax exemption for qualifying farmers, commercial loggers, commercial fishermen and wildlife managers who use dyed diesel in licensed highway vehicles.
The bill directs the Department of Revenue and Department of Agriculture and Consumer Services to notify affected fuel sellers, taxpayers and agricultural users. Most provisions would take effect when the measure becomes law.
Axios reported that nonpartisan legislative staff projected $362 million in lost motor-fuel tax collections. Because the bill uses reserve money to replace distributions, the immediate budget effect would fall on the reserve rather than the transportation accounts listed in the legislation.
The vote is a material development from the extra-session call issued earlier this week. At that time, lawmakers had not released bill text or approved a tax change. The new action sends a specific, time-limited proposal to the governor.
Sources
- North Carolina General Assembly: House Bill 3, ratified bill
- North Carolina General Assembly: House Bill 3 history and House vote
- Axios Raleigh: lawmakers pass temporary motor-fuel tax suspension
Photo Credit: Jmturner via Wikimedia Commons, public domain. North Carolina State Legislative Building in Raleigh, photographed March 21, 2008. Original 3008 x 2000 pixels. Source: https://commons.wikimedia.org/wiki/File:North-Carolina-Legislative-Building-20080321.jpeg.
Editor’s Note: This article was drafted with the assistance of artificial intelligence and was reviewed and fact-checked by a member of the NC Political News editorial team before publication.