Motor Fuels Tax Rate Decrease

Date:  September 16, 2013

The North Carolina motor fuels tax for gasoline, diesel, and alternative fuels will decrease from 37.6 cents to 37.5 cents per gallon for the period from October 1, 2013 through Dec. 31, 2013.

The tax rate is computed using a flat rate of 17.5 cents per gallon and a variable wholesale component. The variable wholesale component is either 3.5 cents or 7 percent of the average wholesale price of motor fuel during the preceding six-month base period, whichever is greater.  The average wholesale price is a weighted average of the wholesale prices of gasoline and No. 2 diesel fuel.  The average price for the last base period was $2.8743 cents per gallon.

North Carolina House Bill 998 became law on July 23, 2013 to cap the motor fuels tax rate at 37.5 cents per gallon with an effective date of October 1, 2013.

The new rate should be used beginning with the gasoline, diesel, and alternative fuels reports for October 1, 2013 that are to be filed with the Department of Revenue in November 2013.  The state motor fuels tax is included in the retail price paid by consumers at the pump.


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