NC gas tax to remain the same

Jun 18, 2014

RALEIGH — The North Carolina motor fuels tax for gasoline, diesel, and alternative fuels will remain at 37.5 cents per gallon for the period from July 1, 2014 through December 31, 2014, Department of Revenue Secretary Lyons Gray announced this week.

The tax rate is computed using a flat rate of 17.5 cents per gallon and a variable wholesale component. The variable wholesale component is either 3.5 cents or 7 percent of the average wholesale price of motor fuel during the preceding six-month base period, whichever is greater. The average wholesale price is a weighted average of the wholesale prices of gasoline and No. 2 diesel fuel. The average price for the last base period was $2.7148 cents per gallon. During the 2013 legislative session, North Carolina House Bill 998 was passed, which capped the motor fuels tax rate at 37.5 cents per gallon. The cap will be effective through June 30, 2015.

The rate should be used beginning with the gasoline, diesel, and alternative fuels reports for July 2014 that are to be filed with the Department of Revenue in August 2014. The state motor fuels tax is included in the retail price paid by consumers at the pump.

 

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