NC gas tax increase means more pain at pump - | Chattanooga News, Weather & Sports

NC gas tax increase means more pain at pump

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Associated Press

RALEIGH, N.C. (AP) - One tax that nearly everyone in North Carolina pays will fall next week. But another one is going up.

The state gasoline excise tax will automatically rise by 2.5 cents per gallon to a record 35 cents on July 1.

That tax is going up even as the Republican-led legislature let a temporary penny increase on the sales tax expire.

Republicans said they couldn't agree on a way to cap the gas tax and make up lost funds for road-building projects.

Democrats controlling the legislature earlier had capped the gas tax for three years ending in mid-2009. The state lost nearly a half-billion dollars it would have collected had the tax been allowed to increase.

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