Brooks Pierce Capital Dispatch: North Carolina Motor Fuel Tax Collection Suspended

The General Assembly this week approved a bill that suspends the state motor fuel tax through November 30. The suspension is effective October 10. Governor Josh Stein signed the bill into law today.

The state motor fuel tax is currently 41 cents per gallon and applies to gasoline, diesel, and blended fuel. By suspending collection of the tax, bill supporters seek to reduce the price paid by consumers for fuel at the pump.   

Key provisions in the bill include:

• The tax revenue lost due to the suspension will be transferred to the North Carolina Department of Transportation from the State’s Stabilization and Inflation reserve. This is estimated to be $362.3 million.
• The cost of motor fuel shall not include the cost of the suspended tax that would have been due for this bill.  
• Retailers are not required to suspend or repay the tax on fuel already purchased prior to the law’s effective date.
• State law imposing penalties for highway use of dyed diesel fuel purchased for farming and agricultural purposes shall not be enforced by the North Carolina Secretary of Revenue through December 31. Qualifying users of such fuel shall not owe motor fuel taxes on it.

Legislators are expected to return to Raleigh after the November 3 election.

For more information, contact the Brooks Pierce Government Affairs Team, linked below:

Ed Turlington, Partner

Drew Moretz, Government Relations Advisor

Katelyn Kingsbury, Government Relations Advisor