North Carolina Governor Josh Stein signed a temporary fuel-tax suspension running from 10 October through the end of November. The pause removes a state levy equivalent to about 10.8 US cents per litre. Fuel already taxed in station inventories may delay the effect at the pump. State reserves replace the transport revenue lost during the suspension.
Josh Stein, governor of the US state of North Carolina, signed legislation on 9 October temporarily suspending the state’s fuel tax through the end of November. Lawmakers approved the measure with bipartisan support. The suspension begins on 10 October, pausing a levy equivalent to approximately 10.8 US cents per litre.[1], [2]
Stations already hold fuel on which the tax has been paid. Stein said they need to sell that stock before purchasing their next tax-free deliveries, so consumers may not see an immediate price reduction. Turnover differs by location: a busy city station can replenish its tanks faster than a rural outlet.[1]
According to Stein, fuel at some rural locations could remain in storage for one or two weeks. The temporary tax change therefore reaches motorists through the distribution chain and the turnover of station inventories.[1]
The North Carolina Department of Transportation receives roughly 5 billion dollars a year to maintain roads, railways, ferries and other infrastructure. About 25 per cent comes from federal funding and 75 per cent from state sources. Fuel taxes provide approximately 40 per cent of the state-funded portion. Reserves replace the revenue lost during the suspension; North Carolina has approximately 7.7 billion dollars across its reserve accounts.[1]
