RALEIGH — Gov. Josh Stein signed House Bill 3 on Friday, putting a temporary suspension of North Carolina’s motor-fuel tax into law as candidates in both parties campaign on the cost of living.
Session Law 2026-62 sets the state motor-fuel excise tax at zero from Oct. 10 through Nov. 30. The rate had been 41 cents per gallon. The law says the price paid by consumers should reflect the tax savings, but it does not require a retailer to cut prices on fuel purchased before the suspension took effect. That means the change may not appear at every pump immediately.
The measure directs the state controller to replace the forgone revenue with money from the Stabilization and Inflation Reserve so transportation and other accounts that normally receive fuel-tax revenue are held harmless. WUNC reported the transfer is expected to total about $360 million.
The law also temporarily changes rules for dyed diesel used for farming and other agricultural purposes. It bars enforcement of certain civil and criminal penalties through Dec. 31 and provides a temporary tax exemption for specified users, including qualifying farmers, commercial loggers and commercial fishermen.
Stein signed the bill during an event at Jamie Ager’s farm near Asheville. The governor’s office said the move was intended to provide immediate relief from higher fuel costs. Republican legislative leaders, who advanced the bill during a special session, have also promoted it as an affordability measure.
The signing is a separate development from the General Assembly’s Oct. 7 passage of the bill. The House approved it 111-1, and the Senate recorded a 41-0 vote on second reading. The action comes less than a month before the Nov. 3 election, when voters will decide competitive federal and state races across North Carolina.
WUNC and WRAL reported that politicians in both parties are claiming credit for the temporary tax break while blaming the other party for higher prices. The law’s near-term effect will depend in part on how quickly retailers sell fuel that was taxed before the suspension began.
Sources
- North Carolina Governor’s Office: Stein signs House Bill 3
- WUNC: Stein signs gas-tax suspension
- WRAL: North Carolina suspends gas tax
Photo Credit: NCDOTcommunications via Wikimedia Commons, CC BY 2.0. Gov. Josh Stein at the Jan. 6, 2025 Cabinet swearing-in; image cropped and formatted for publication. Source. License.
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.