Pump prices are falling, but North Carolina's gas tax will rise by 3.9 cents on January 1 to an all-time high of 38.9 cents a gallon, the N.C. Department of Revenue said.
Only four states have higher gas taxes. Fortunately, if recent price trends continue, drivers can expect the North Carolina tax rate to fall again next July.
The Republican-controlled General Assembly cut other taxes and curbed state spending this year. But legislators also increased state spending for roads and bridges -- and they could not agree on whether to limit the state gas tax, which pays for more than half the total transportation budget.
The House voted overwhelmingly in November to cap the tax at its current level, 35 cents. But the Senate adjourned without taking up the bill, so the law allowing a tax increase Jan. 1 was left unchanged. ... [MORE]


