Two lawmakers in North Carolina have introduced legislation to give drivers in the state a price break at the fuel pump. If approved, the state could lose out on highway dollars.
A portion of the state’s fuel tax is variable; it goes up as wholesale prices climb.
Bills introduced last week in the House and Senate would cap a portion of the fuel tax that rises with wholesale prices.
“Our pockets are being picked by the state of North Carolina by that gas tax variable rate,” Rep. Michael Decker, R-Walkertown, told Raleigh’s WRAL-TV. “That needs to be stopped.”
The variable rate is a small portion of the state’s 24-cent fuel tax. It is adjusted twice yearly.
The concern for drivers and lawmakers looking to be re-elected in November is that, with rising wholesale prices, the tax will rise another 3 to 5 cents when it is adjusted again in September.
With that in mind, some lawmakers are looking to eliminate that portion of the fuel tax altogether. Fuel prices would drop 7 cents a gallon.
If the variable rate is eliminated, the state would lose $350 million earmarked for road repairs, the news station reported.
“I’d rather trade off highway maintenance right now for lower prices on fuel, and then we’ll address the maintenance issue of the highways some other time,” said Rep. Louis Pate, R-Mount Olive.
In the meantime, bill sponsors said they are getting a lot of positive response. The only question is whether the variable tax will be capped or eliminated.
“The state can’t afford not to give people a break if the prices continue to climb,” Lt. Gov. Bev Perdue said.
The bills are H1661 and S1278.