State Motor Fuels Tax Rate Increased
December 21, 2007
RALEIGH – The North Carolina motor fuels tax for gasoline, diesel, and alternative fuels will increase from 29.7 cents to 29.9 cents per gallon for the period from Jan. 1, 2008 through June 30, 2008, Department of Revenue Secretary Reginald S. Hinton announced today.
The tax rate is computed using a flat rate of 17.5 cents per gallon and a wholesale component. 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 $2.275 cents per gallon. During the 2007 legislative session, the General Assembly capped the variable wholesale component of motor fuel excise tax at 12.4 cents per gallon.
The new rate should be used beginning with the gasoline, diesel, and alternative fuels reports for January 2008 that are to be filed with the Department of Revenue in February 2008. The state motor fuels tax is included in the retail price paid by consumers at the pump.
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Last modified on:
01/04/08 02:06:38 PM