North Carolina Lawmakers Pass Temporary Gas Tax Suspension

The bill now moves to the Governor’s desk with a ten-day window for action before it automatically becomes law. To prevent a funding gap for the North Carolina Department of Transportation, the state will redirect $362.3 million from its Inflation Reserve to cover the lost revenue. This measure ensures that ongoing road construction and maintenance projects remain fully financed throughout the suspension period.

House Speaker Destin Hall estimates the move will provide relief of roughly 30 to 35 cents per gallon for consumers. To enforce these savings, the state plans to utilize existing price-gouging laws, ensuring that retailers pass the reduction on to the public rather than absorbing the margins. The legislation also grants specific tax exemptions for farmers, commercial loggers, and fishermen through the end of the year.

Dave Simpson, President and CEO of Carolinas AGC, expressed support for the plan, noting that protecting the NCDOT’s construction program was the association's primary concern. While the suspension is scheduled to expire at the end of November, lawmakers have indicated they will monitor fuel market fluctuations closely and may revisit the issue when they reconvene later this year.