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State gas tax going up
Updated: 12/17/2005 11:08 AM
By: Adam Shub, News 14 Carolina

CHARLOTTE, N.C. – The price at the pump is about to head even higher.

According to the North Carolina Department of Revenue, the state’s motor fuels tax will increase 2.8 cents at the first of the year. The hike will affect gas, diesel and alternative fuels. Currently the state claims about 27 cents per gallon.

With average prices well over $2, drivers are having a difficult time understanding why the hike is coming now.

“People are having it hard enough right now,” said motorist Leonard White. “Yeah, it’s hard to understand.”

Sarah Davis of AAA Carolinas explained that a percentage of the tax is tied to wholesale oil prices and it is adjusted every six months by law – meaning when the price of oil goes up, so does the state tax.

“Because we saw some record high gas prices in this previous six months, we’re going to see an increase in the gas tax,” she said.

The extra money helps pay for highways.

“For every penny of the gas tax that it increases, the department of transportation estimates at least another $20 million in that six months,” Davis said.

Surprisingly, the tax has gone down several times in the past few years, including more than 2 cents in June of 2002.

And although the tax probably won’t be going down again any time soon, few people will even notice the increase. Pumping 30 gallons a week will only cost an extra 90 cents.

Drivers, of course, are still less than pleased.

AAA Carolinas also said it’s likely the tax will go up again this summer.

Currently North Carolina gas prices are 3 cents below the national average. According to AAA, on average the cheapest fuel prices are in Utah, at $1.99 per gallon.

Web Journalist: Lindsay Varner

1 posted on 12/19/2005 4:41:04 PM PST by Libloather
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To: Libloather

OUCH.the biggest beneficiaries of gasoline sales are federal and state governments, not the oil industry:
http://taxprof.typepad.com/taxprof_blog/2005/10/gas_taxes_excee.html

http://www.eia.doe.gov/pub/oil_gas/petroleum/analysis_publications/primer_on_gasoline_prices/html/petbro.html


2 posted on 12/19/2005 4:46:39 PM PST by Rakkasan1 (Peace de Resistance! Viva la Paper towels!)
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To: Libloather
On Nov 17th I paid 2.59/gal in Daytona.
On Nov 18th I paid 1.94/gal in Murphy, NC.

In Daytona across from the Speedway are two stations; one has reg. unleaded for 2.49, the other has the same octane gas at 2.23, that was today
3 posted on 12/19/2005 4:47:12 PM PST by RedBloodedAmerican
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To: Libloather

$63,000 is not nearly enough.


4 posted on 12/19/2005 4:59:03 PM PST by blam
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To: Libloather

How can a seller that makes less per gallon in *net* profit be gouging than the government makes in taxes on that same gallon. And that same government doesn't lower the tax during a tight supply situation. Sounds like the government is gouging more than the retailer, if you use greed as a yardstick. Yet, no one on the left accuses the government of gouging. Funny, isn't it?

Shouldn't there be an investigation, and a windfall profits rebate from the government? yuk, yuk.


8 posted on 12/19/2005 5:52:30 PM PST by ChildOfThe60s (If you can remember the 60s......you weren't really there.)
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