State Motor Fuels Tax Rate to Increase

Date: 6/16/2003

RALEIGH -- The North Carolina motor fuels tax for gasoline, diesel and alternative fuels will increase from 23.4 cents to 24.2 cents per gallon for the period from July 1, 2003 to Dec. 31, 2003, Department of Revenue Secretary E. Norris Tolson announced today.

The 24.2-cent rate includes a flat rate of 17.5 cents per gallon and a wholesale component of 6.7 cents per gallon. The Secretary sets the amount of the wholesale component twice a year, as delegated by the General Assembly.

The 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 95.92 cents per gallon.

The new tax rate should be used beginning with gasoline, diesel and alternative fuel reports filed for July 2003 that are to be filed with the Department of Revenue in August. The state motor fuels tax is included in the retail price paid by consumers at the pump.

 

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