How long will NC suspend its gas tax? Vote and details expected Wednesday

North Carolina lawmakers on Wednesday are expected to vote on a plan to suspend or temporarily reduce the state’s gas tax — a move that could bring some relief to motorists who have seen fuel prices rise since the start of the conflict with Iran earlier this year. 

Top Republican legislators have called themselves back to Raleigh for a special session on gas and diesel costs. As of late Tuesday, they hadn’t released many details of their plans. But lawmakers in the GOP-controlled General Assembly are expected to suspend all or some of the state’s tax on gas, which is 41 centers per gallon, at least temporarily, state leaders have said. 

“Rising fuel costs are squeezing North Carolina families' pocketbooks and creating challenges for farmers across the state,” House Speaker Destin Hall, R-Caldwell, said Saturday on social media. “North Carolinians can't afford to wait.”

If lawmakers pass the proposal and send it to Democratic Gov. Josh Stein, the gas tax suspension could go into effect as soon as this week. Stein on Tuesday said he’s open to supporting a gas tax suspension, while lamenting that Republican legislative leaders haven’t acted sooner. 

“I'm gratified that people who are really struggling to pay their bills are going to get some relief. I wish it didn't take the election season to get this attention, but for whatever reason, it's happening, and that's a good thing,” Stein said at a meeting with agency leaders. 

He told reporters later that he couldn’t commit yet to signing the bill without knowing the exact details that’ll be in it. He said that while he supports helping consumers, he doesn’t want to take money away from the state Department of Transportation’s work repairing roads and bridges, or building new ones. Nearly half of its budget comes from the gas tax.

“We have got to repair our roads,” Stein said. “We have to build new roads. We are a growing state. We cannot allow our infrastructure to crumble. So they need to hold the Department of Transportation and our road work harmless as they come up with this relief for people at the pump.”

The NCDOT estimates that a monthlong suspension of the gas tax would cut its budget by approximately $225 million.

State Treasurer Brad Briner, a Republican, told WRAL in an interview Tuesday that the state has more than enough money in savings for now to cover some road-repair costs if needed. But that’s a decision for lawmakers to make, he said, on whether that’s a good reason to dip into savings. He noted that hurricanes and other emergencies can also require money from savings.

“We're not talking about an amount of money that will hit the state's credit rating,” Briner said. “We're a AAA [bond rating] state. We have $11 billion of reserves. We have a lot less than that in debt. So we can more than afford it. Whether it's the highest and best use, is for the General Assembly to answer.”

Lawmakers’ effort comes about a week before the start of early, in-person voting in North Carolina, and about a month before the Nov. 3 Election Day — timing that Democrats claim shows that Republicans are worried about their prospects in the upcoming election.

The rising fuel prices, tied to the war in Iran, have contributed to President Donald Trump’s plummeting approval ratings in recent weeks. Trump’s approval rating has fallen to 43% among likely voters in North Carolina, according to a poll released late last month by High Point University.

Democrats stand to flip multiple competitive seats in the state legislature this year, which could eat into the GOP’s majority and give Stein and legislative Democrats more power and negotiating leverage.

“We need to not only be focused on this in the session immediately before election, but it needs to be part of our daily work,” Stein said at Tuesday’s meeting, adding: “And there are many things we can do to help working people across the state, whether it's working families tax cut or child care assistance. There are things that we can be doing, and I am eager to work with the next General Assembly to put families of North Carolina first.” 

The average U.S. price of a gallon of conventional regular gasoline was $4.31 last week, up 44% from a year ago, according to the U.S. Energy Information Administration. Regular gas in North Carolina averages about $4.03 per gallon, according to AAA — up from $3.84 a month ago and $2.82 a year ago.

Meanwhile, diesel prices have nearly doubled since the start of the year, rising from $3.46 a gallon in early January to $6.53 a gallon in late September, a new record high, according to consulting firm Bain & Co. In North Carolina, diesel now averages about $6.01 per gallon, according to AAA. That’s up 72% from a year ago.

Trump on Monday signed an executive order to ease limits on the use of tax-free red-dyed diesel, which is typically reserved for off-road agricultural or construction equipment. Trump said the move would help farmers and drive down the cost of goods. In North Carolina, Stein last week directed the state’s Department of Revenue to suspend enforcement of penalties for highway use of red-dyed diesel through Dec. 31. He had also called on the Trump administration to do the same, and said Tuesday he was glad to see the federal government finally follow suit.

North Carolina’s gas tax generates about 40% of the state Department of Transportation’s in-state revenue, agency spokesperson Kim Deaner said in a statement. Based on the estimates the DOT provided, every day the gas tax is suspended would equate to $7.5 million less for the DOT and its road crews. 

“The department remains committed to connecting people and products safely and efficiently. The department will work closely with the General Assembly and provide information about potential impacts," she said in the statement.

The Associated Press and WRAL state government reporter Paul Specht contributed to this article.