Today, the House and Senate agreed on a bipartisan plan that will secure critical transportation funding, and offer a long-term stabilization of the gas tax.
First, the proposal will keep the biannual gas tax adjustments in place, with changes occurring on January 1 and July 1 of each year. This year; however, the fix will be implemented on April 1; the next adjustment will be on January 1, 2016.
The gas tax will slowly decrease over time, offering both security for our infrastructure projects, and incremental relief for taxpayers. Changes will occur as follows:
April 1, 2015 – December 31, 2015 $0.36
January 1, 2016 – June 30, 2016 $0.35
July 1, 2016 – December 30, 2016 $0.34
January 1, 2017 Implement new Motor Fuel Tax Formula
“Senate Bill 20 is a testament to how our political process can and should work,” Speaker Moore stated on Thursday. “I am very pleased that both chambers could work together to come to a responsible solution that not only stabilizes our important road and bridge projects, but also provides immediate relief at the pump.”
“We appreciate the House bringing forward an innovative new formula that will provide stability to gas tax revenues and allow us time to work on a comprehensive transportation solution,” said Berger. “We look forward to continuing a productive working relationship with our House colleagues.”
The gas tax has long been one of the State’s most fair but volatile revenue streams. Presently, it makes up nearly 70 percent of the fund to maintain roads and bridges, and approximately 60 percent of the state Department of Transportation’s budget. And while North Carolina’s state-maintained transportation system allows for lower property tax rates per county, the lack of certainty in the current formula makes it very difficult for the State to plan and fund essential road projects. This bipartisan agreement offers a solution to that problem.