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North Carolina approves temporary repeal of 41-cent gas tax amid price surge

The House and Senate unanimously approved a measure that would zero out North Carolina’s 41-cent-per-gallon state gas tax through Nov. 30, once signed by Gov. Josh Stein. The vote came in a special session weeks before the midterm election, drawing criticism from Democrats over its timing.

North Carolina approves temporary repeal of 41-cent gas tax amid price surge
RALEIGH, N.C. — North Carolina lawmakers voted Wednesday to temporarily eliminate the state gas tax, a measure supporters say could offer drivers relief as fuel prices climb amid the war in Iran. The House approved the bill 111-1 and the Senate passed it 41-0 on Oct. 7. It would reduce the state tax from 41 cents per gallon to zero beginning the day after Gov. Josh Stein signs it, with the suspension ending Nov. 30. Stein had not signed the measure as of Wednesday’s vote. The federal gas tax of 18.4 cents per gallon would remain in effect, so the state measure would not eliminate all taxes on fuel purchases. The vote followed a special session called by Republican legislative leaders, Senate leader Phil Berger and House Speaker Destin Hall. Lawmakers had not been scheduled to meet for several weeks. The session came about a month before the November midterm election, prompting criticism from Democratic Senate leader Sydney Batch, who said lawmakers could have acted earlier to address rising costs. Fuel prices have risen sharply over the past year. The national average for gasoline was $4.46 per gallon last week, more than 30% above its level a year earlier, according to the U.S. Energy Information Administration. AAA put North Carolina’s average at about $4.03 per gallon, compared with $2.82 a year earlier. On Tuesday, Stein also expanded the permitted use of tax-free, red-dyed diesel, which is generally designated for off-road purposes, to cover additional diesel vehicles. The state has said it will waive penalties for that use through December 2026. The move followed a similar federal order signed by President Donald Trump. Other states have also adopted temporary tax measures as fuel prices rise. Ohio approved a 90-day gas tax holiday in late September, while Georgia introduced a 30-day suspension that month. The state bill’s short duration means any reduction for North Carolina drivers would last only until the end of November, and the federal fuel tax would still apply throughout.

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