Another Perspective on North Carolina’s Gas Tax | Eastern North Carolina Now

    Okay, we've established that no one wants to pay higher taxes for anything - on income; for goods or services; on capital gains; on estates; and most especially for motor fuel. Your editorial of December 31 entitled "State's Motorists Can't Catch Break" is just the latest example of telling people what they already know.

    However, folks need to understand a couple of things about North Carolina's gas tax beyond the fact that it's higher than most other states.

    First, North Carolina maintains more miles of roadway than any other state besides Texas and does so with only money raised from the gas tax, the 3% sales tax on automobile purchases and a few driver-related fees. Many other states ask their local governments to pitch in for roads and bridges and assess higher property taxes for that purpose. I think North Carolina's approach is correct; and I daresay those who complain about the high gas tax would complain louder if their property taxes were hiked to pay for their local roads.

    Second, the gas tax is just about the most transparent and accountable tax North Carolina levies. Since 2008 when the General Assembly began to stop the transfer of gas tax receipts to the general fund, our motorists can be assured that money raised by the gas tax pays for transportation projects. North Carolina income and sales taxes by contrast get lumped together to pay for all other state functions.

    Third, the semi-annual adjustment in the gas tax is a smart way to manage the revenue stream. Because the tax is tied to the wholesale price of fuel, when gas prices rise consumption drops, but the higher tax means revenues remain consistent. Conversely when gas prices drop consumption increases, but revenues remain constant and predictable despite a lower tax. NCDOT can plan better and use the public's money more prudently. Besides, when fuel prices increase, that means the cost of building and maintaining roads and bridges increases too, so more money is required to pay for the work.

    Finally, the gas tax has very little to do with the actual price a motorist pays at the pump. Gasoline is still a global commodity the price of which is affected more by turmoil in the Middle East than policy in Raleigh. If the gas tax represents about 15% of what you pay for a gallon, that means 85% of what you pay goes to oil producing countries, global oil companies, refiners, transporters, wholesalers and the convenience stores on the corner.

    So while no one wants to pay higher taxes, remember that North Carolina's gas tax builds and maintains a lot of roads and bridges which we desperately need; and for a reasonable cost, given our state's size, vitality and tradition of keeping local governments out of transportation funding. Next time you get stuck in traffic on US 70 in James City or caught behind a log truck on two-lane US 17 in Jones County, remember that every dollar for transportation counts.