Research Report
N.C.’s Gas Tax Can Be Cut; Road Construction Wouldn’t Be Harmed
posted January 3, 2006 by Joseph Coletti
State leaders claim that capping the gas tax at 27.1 cents per gallon would cost the state up to $135 million a year in road construction. They are wrong. The state will be just $5.3 million behind projections planned for in this year’s budget if it freezes the gas tax. Furthermore, nearly $400 million in gas tax revenues goes toward spending that has nothing to do with road construction. The General Fund, public transportation, railroads, and airlines all receive gas-tax revenues. There is no need to take money from road construction so long as gas-tax revenues are diverted to unrelated programs.