North Carolina- The gas tax is going up from 37.5 cents per gallon to 37.6 cents per gallon starting July 1.
Just in time for family road trips during the summer and the 4th of July, North Carolina's gas tax is going up.
Based on what we heard on our WFMY News 2 Facebook page, you'd think prices are skyrocketing. The increase is actually less than one penny. It's only one tenth of a cent more, but many people said the pennies add up.
You'll pay the new rate of 37.6 cents per gallon started July 1. That will last through 2013. Then, in January, you'll likely see another increase.
The gas tax based on two factors: a flat rate of 17.5 cents per gallon and a variable rate based on the average price of fuel during the previous six months. That's why a new rate will go into effect in January 2014. The state projects it will be anywhere between 37 and 38 cents per gallon.
Compared to other states, North Carolina has a high tax rate. In fact, our base rate on fuel is tied with Washington as the highest in the nation.
Our lawmakers say we have more roads owned and operated by the state and they need the budget to maintain them. Seventy-five percent of the fuel tax money helps pay for things like maintenance and the DMV. The other 25% goes into the state's construction fund.
The budget estimated the fuel tax will generate nearly $2-billlion this fiscal year. According to the state, the average driver pays almost $300 a year just in gas taxes.
The state owns nearly 80,000 road miles in North Carolina, roughly 75% of all roads.
Read here: Q&A: NC Motor Fuels Taxes
WFMY News 2, NC Fiscal Research Division