Governor Signs Bill to Stabilize Transportation Funding | Eastern NC Now

News Release:

    Raleigh, N.C.     Governor Pat McCrory signed legislation that will immediately reduce North Carolina's gas tax as part of a finance plan that will stabilize revenue needed for the state's transportation projects.

    The bill reduces the state tax motorists pay today on a gallon of gasoline from 37.5 cents to 36 cents effective April 1, 2015. The gas tax rate will be further reduced to 35 cents on January 1, 2016 and drop to 34 cents on July 1, 2016.

    "This bill will allow us to build roads, strengthen bridges and fix potholes so people can get to their jobs, go to school, see their doctors and drive to the mountains or the beach," Governor McCrory said. "We now have a gas tax that is based on North Carolina's transportation needs instead of the unpredictability of the world oil market."

    Previously, the state's gas tax was based on the fluctuating international wholesale price of crude oil.

    After January 1, 2017, the gas tax will be calculated on a formula with a 34 cents per gallon base price plus calculations drawn from the Consumer Price Index and the state's population change.

    Stabilizing transportation revenue was one of the goals Governor McCrory set in his State of the State Address.

    The new gas tax system will require the North Carolina Department of Transportation to reduce its budget by $13.5 million. The elimination of 40 positions will be among the cuts made to meet that budget reduction.


    Contact: Crystal Feldman
       govpress@nc.gov