July 2, 2009
Gas Tax Change in North Carolina
by Joseph Henchman
Our friends at the John Locke Foundation in North Carolina offer some insight into the recent change to their state gas tax. As we mentioned yesterday, expiring yesterday was a cap on the state's gas tax, which normally should change with the wholesale price (not inflation) each year but has been prevented from doing so for several years.
The cap has now been transformed into a floor, which prevents the gas tax from going any lower. Experts predict that the gas tax may go up about 10 cents per gallon due to the change. According to Joe Coletti at John Locke, the tax would have fallen to 27 cents per gallon yesterday, but the floor prevented it from dropping below 29 cents per gallon.
Guess legislators aren't listening to complaints about high gas taxes anymore.
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