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State gas tax wouldn't drop 2 cents in Senate bill

Monday, May 11, 2009

(Updated 7:51 pm)

By The Associated Press

RALEIGH (AP) — A plan that would prevent North Carolina's gas tax from falling two cents a gallon July 1 would generate tens of millions of dollars for road building.

Senators voted 27-19 on Monday to replace the current cap on the gas tax at 29.9 cents per gallon with a minimum rate of the same amount through mid-2011.

Without the change, the tax is predicted to fall to 27.9 cents this summer because of lower gas prices. The tax is readjusted twice a year based on the wholesale gas price.

The change could generate another $68 million for roads because the tax would be higher than what's projected.

The measure was given initial Senate approval last week and now goes to the House.

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RonaldusMagnus

May 11, 2009 - 10:25 pm EDT

Suprise Suprise! Lets keep electing Democrates so our tax rates can catch up to states like NY and CA. Then the little industry that is left here will flee as it has in those states.