GENERAL ASSEMBLY OF NORTH CAROLINA

SESSION 2011

H                                                                                                                                                    1

HOUSE BILL 399

 

 

Short Title:        Cap Motor Fuel Excise Tax Rate.		(Public)
Sponsors:	Representatives McElraft, Killian, Hager, and Stone (Primary Sponsors). For a complete list of Sponsors, see Bill Information on the NCGA Web Site.
Referred to:	Finance.

March 21, 2011

A BILL TO BE ENTITLED

AN ACT to provide a statutory cap for the motor fuel Excise tax rate.

The General Assembly of North Carolina enacts:

SECTION 1.  G.S. 105‑449.80(a) reads as rewritten:

"(a)       Rate. – The motor fuel excise tax rate is a flat rate of seventeen and one‑half cents (17 1/2¢) a gallon plus a variable wholesale component. The variable wholesale component is either three and one‑half cents (3 1/2¢) a gallon or seven percent (7%) of the average wholesale price of motor fuel for the applicable base period, whichever is greater. greater, but subject to a maximum of fifteen cents (15¢) per gallon.

The two base periods are six‑month periods; one ends on September 30 and one ends on March 31. The Secretary must set the tax rate twice a year based on the wholesale price for each base period. A tax rate set by the Secretary using information for the base period that ends on September 30 applies to the six‑month period that begins the following January 1. A tax rate set by the Secretary using information for the base period that ends on March 31 applies to the six‑month period that begins the following July 1."

SECTION 2.  This act becomes effective July 1, 2011, and applies to taxes imposed on or after that date.