North Carolina lawmakers voted Wednesday, Oct. 7, to set the state’s motor fuel tax on gasoline and diesel to zero from the day after the bill becomes law through Nov. 30. The bill now awaits Gov. Josh Stein’s signature.
The House passed House Bill 3, titled “Relief at the Pump,” 111-1. The Senate passed it 41-0. Rep. Pricey Harrison, a Guilford County Democrat, cast the only no vote. All three legislators who represent Catawba County voted yes: Rep. Jay Adams and Rep. Mitchell Setzer, both Republicans, and Sen. Mark Hollo, a Republican whose district covers Caldwell and Catawba counties. Adams and Setzer are listed as sponsors. Setzer, presiding over the House, signed the final bill along with Senate leader Phil Berger.
The state tax is 41 cents a gallon. Under the bill, retailers are expected to pass the full savings along at the pump. Stations do not have to cut prices on fuel they bought before the suspension took effect, with the tax already paid. The zero-cent period will not count when the state sets its 2027 gas tax rate.
The gas tax pays for roads. The bill moves money each month from the state’s Stabilization and Inflation Reserve to the Highway Fund, the Highway Trust Fund and four smaller funds to cover what the tax would have brought in. Legislative leaders put the cost at about $360 million.
The bill also helps farmers and others who use red-dyed diesel, which is normally untaxed and limited to off-road use. Through Dec. 31, the state may not penalize anyone for using dyed diesel in highway vehicles for farming, forestry, aquaculture or related agricultural work. From Oct. 1 through Dec. 31, certified farmers, commercial loggers, commercial fishermen and wildlife managers will owe no motor fuel tax on dyed diesel used in licensed highway vehicles. Stein ordered a similar pause on penalties last week.
The state Department of Revenue, working with the Department of Agriculture, must notify fuel sellers and affected users once the bill becomes law.
Lawmakers met for one day. Speaker Destin Hall and Berger announced the plan Oct. 3 and called members back by joint proclamation on Oct. 5. Both chambers adjourned the special session Wednesday. The legislature’s calendar shows the House and Senate next meeting Oct. 26.
Stein had not acted on the bill as of Wednesday afternoon. Carolina Journal reported, citing sources familiar with the matter, that Stein plans to sign it by the end of the week. He told reporters Tuesday he was “gratified that people who are really struggling to pay their bills are going to get some relief,” according to Carolina Journal, while saying lawmakers should have acted sooner. He had earlier said any bill must protect road funding.
Democrats voted for the bill but said the timing, weeks before the Nov. 3 election, was political. Senate Republicans rejected a Democratic amendment to let the attorney general handle complaints about stations that do not lower prices.
Earlier coverage: Hall and Berger call special session on gas and diesel prices
Source note: As of publication, the bill’s status, text and roll-call votes are from the North Carolina General Assembly’s House Bill 3 page, the ratified bill, House roll call No. 6, Senate roll call No. 2 and the joint proclamation. Stein’s quote and the report on his plans are from Carolina Journal. The cost estimate and amendment details are from a local news report.
