N.C. House and Senate leaders on Thursday announced a bipartisan plan they say will “secure critical transportation funding and offer a long-term stabilization of the gas tax.”
Changes to the biannual gas tax will occur on Jan. 1 and July 1 of each year under the new plan. But this year, the “fix” will be implemented April 1, according to a joint news release from N.C. House Speaker Tim Moore and Sen. Phil Berger, president of the Senate.
The changes are outlined in Senate Bill 20, which was sponsored by Southport Republican Bill Rabon and was recently approved in both chambers.
“The gas tax will slowly decrease over time, offering both security for our infrastructure projects, and incremental relief for taxpayers,” the news release states.
From April 1 through Dec. 31, 2015, the gas tax will be 36 cents. It lowers to 35 cents from Jan. 1, 2016, until June 30, 2016. From July 1, 2016, through Dec. 30, 2016, the tax will be 34 cents. On Jan. 1, 2017, a new gas tax formula will be implemented.
“Senate Bill 20 is a testament to how our political process can and should work,” Moore said. “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.”
In the House, Republican Reps. Frank Iler, of Oak Island, Rick Catlin, of Wilmington, and Ted Davis, of Wilmington, voted in favor of Senate Bill 20, while Reps. Susi Hamilton, a Wilmington Democrat, and Chris Millis, a Pender County Republican, voted against the bill.
“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,” Berger said. “We look forward to continuing a productive working relationship with our House colleagues.”
The state’s gas tax–described by Moore and Berger as “one of the state’s most fair but volatile revenue streams”–makes up nearly 70 percent of the funding needed to maintain roads and bridges across the state, and accounts for about 60 percent of the N.C. Department of Transportation’s budget.
“This proposal protects and stabilizes gas tax revenue so we can fund important transportation priorities that connect communities throughout our state,” N.C. Gov. Pat McCrory said. “I appreciate the spirit of cooperation by House and Senate leaders in working to reach this bipartisan compromise.”
Read the full text of the bill here.
