GENERAL ASSEMBLY OF NORTH CAROLINA
SESSION 1989
Short Title: North Carolina Highway Trust Fund. (Public)
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Referred to: Infrastructure.
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The General Assembly of North Carolina enacts:
Section 1. Chapter 136 of the General Statutes is amended by adding a new Article to read:
“Article 14.
"North Carolina Highway Trust Fund.
"§ 136-175. North Carolina Highway Trust Fund; created.
There is created a special account within the State Treasury to be known as the ‘North Carolina Highway Trust Fund'. The Trust Fund shall contain the proceeds from the sources designated by this Article and the Trust Fund is continuously appropriated for the purposes designated by this Article.
"§ 136-176. North Carolina Highway Trust Fund; purposes.
The Trust Fund shall be used:
(1) For the planning, design, and construction of the projects of the North Carolina Intrastate System specifically described in G.S. 136-178.
(2) For the planning, design and construction of the projects of the Urban Loops described in G.S. 136-179.
(3) For a supplement to secondary road construction as described in G.S. 136-180.
(4) For a supplement to the Transportation Improvement Program.
Funds from the North Carolina Highway Trust Fund may be substituted on a dollar-for-dollar basis with funds from the Federal Aid Construction Program.
"§ 136-177. North Carolina Highway Trust Fund; sources.
The Trust Fund shall receive all funds generated by:
(1) The three cents (3¢) per gallon tax on motor fuel collected pursuant to Articles 36, 36A, and 36B of Chapter 105 of the General Statutes.
(2) The two percent (2%) fee on the transfer of all motor vehicles collected pursuant to G.S. 20-72.1.
(3) Other funds collected pursuant to the provisions of this Article or from other sources when specifically designated to be deposited to the credit of the Trust Fund.
"§ 136-178. North Carolina Intrastate System.
Sixty and five one-hundredths percent (60.05%) of the Trust Fund shall be used to plan, design and construct the North Carolina Intrastate System, hereinafter referred to in this Article as the ‘Intrastate System'. The Intrastate System is a network of major multi-lane arterial highways established to provide a high level of travel service (speed, safety and mobility) throughout the State, and serves to connect major population centers both inside and outside the State to provide safe, convenient, through travel for motorists. The Intrastate System is designed to support statewide growth and development objectives and connect to major highways of adjoining states. Designed for high speed travel, these corridors shall have access control determined by travel service and economic considerations. The entire Intrastate System shall be under construction no later than 2001.
The Intrastate System consists of the following projects:
Route Description Affected Counties
I-40 Widening
I-77 Widening
I-85 Widening
I-95 Widening
US-64 Complete 4-laning from Edgecombe, Pitt,
Raleigh to Coast Martin, Washington,
Tyrrell, Dare
US-264 Complete 4-laning from Wilson, Greene,
US-64 to Washington Pitt
(including Wilson and
Greenville Bypasses)
US-70 Complete 4-laning from Wake, Johnston,
Raleigh to Morehead City Wayne, Lenoir,
(including Clayton, Pamlico
Goldsboro, Kinston,
Smithfield-Selma, and
Havelock Bypasses)
NC-24 Complete 4-laning from Mecklenburg,
Charlotte to Morehead Cabarrus, Stanly,
City Montgomery,Moore,
Harnett, Cumberland,
Sampson, Duplin,
Onslow, Carteret
US-74 Complete 4-laning from Mecklenburg, Union,
Charlotte to US-17 Richmond, Robeson,
(including multi-laning Columbus
of Independence Blvd. in
Charlotte, and Bypasses
of Monroe, Rockingham,
and Hamlet)
US-74 Complete 4-laning from Polk, Rutherford
I-26 to I-85
US-158 Complete 4-laning Forsyth, Guilford,
from Winston-Salem Rockingham, Caswell,
to Whalebone Person, Granville,
Vance, Warren,
Halifax,
Northampton, Gates,
Hertford,
Pasquotank, Camden,
Currituck, Dare
New bridge over Currituck
Currituck Sound
US-64 Complete 4-laning from Davidson, Randolph,
Lexington to Raleigh Chatham, Wake
US-421 Complete 4-laning from Watauga, Wilkes,
Tennessee Line to I-40 Yadkin
US-421 Complete 4-laning from Chatham, Lee
Greensboro to Sanford
(including Bypass of
Sanford)
NC-87 Complete 4-laning from Lee, Harnett,
Sanford to US-74 Cumberland, Bladen,
Columbus
US-13 Connector from I-95 Cumberland
to NC-87
US-19/ Complete 4-laning from Madison, Yancey,
US-19E US-23 to NC 194 in Mitchell, Avery
Ingalls
NC-194 Complete 4-laning from Avery
US-19E to US-221
US-19 Complete 4-laning Cherokee, Macon,
Swain
US-23-441 Complete 4-laning from Macon
US-19/US-74 to Georgia
Line
US-23 Complete 4-laning and Madison, Buncombe
upgrading existing
4-lanes from Tennessee
Line to I-240
NC-105 Complete 4-laning from Watauga, Avery
Boone to Linville
US-221 Complete 4-laning from Avery, McDowell,
Linville to South Rutherford
Carolina
US-321 Complete 4-laning from Caldwell, Catawba,
Boone to South Carolina Lincoln, Gaston
Line
US-52 Complete 4-laning from Surry, Davidson
I-77 to Lexington
(including new I-77
Connector)
US-220/NC-68 Complete 4-laning from Rockingham, Guilford
Virginia Line to I-40
US-220 Complete 4-laning from Guilford, Randolph,
I-40 to South Carolina Montgomery, Richmond
Line
US-1 Complete 4-laning from Vance, Franklin,
Henderson to South Wake, Chatham, Lee,
Carolina Line Moore, Richmond
(including 6-laning of
Raleigh Beltline)
US-13 Complete 4-laning from Gates, Hertford,
Virginia Line to US-17 Bertie
US-17 Complete 4-laning from Camden, Pasquotank,
Virginia Line to South Perquimans, Chowan,
Carolina Line (including Bertie, Martin,
Washington, New Bern, Beaufort, Craven,
and Jacksonville Jones, Onslow,
Bypasses) Pender, New Hanover,
Brunswick
NC-168 Complete multi-laning Currituck
from Virginia Line
to US-158
"§ 136-179. Urban loops.
Twenty-four and six one-hundredths percent (24.06%) of the Trust Fund shall be used to plan, design and construct the following projects:
Project Description County
Charlotte Outer Loop Multi-lane facility on Mecklenburg
new location encircling
City of Charlotte.
Raleigh Outer Loop Multi-lane facility on Wake
new location from US 1
southwest of Cary
northerly to US-64 in
eastern Wake County.
Greensboro Loop Multi-lane facility on new Guilford
location encircling City
of Greensboro.
Winston-Salem Multi-lane facility on new Forsyth
Northbelt new location from I-40 west
of Winston-Salem northerly
to I-40 in eastern Forsyth
County.
Durham Northern Loop Multi-lane facility on new Durham, Orange
location from I-85 west of
Durham to US 70 east of
Durham.
Asheville Western Multi-lane facility on new Buncombe
Loop location from I-26 west of
Asheville to US-19/23
north of Asheville.
Wilmington Bypass Multi-lane facility on new New Hanover
location from US-17
northeast of Wilmington
to the US-17 southwest
of Wilmington.
"§ 136-180. Secondary roads.
Six and one-half percent (6.5%) of the Trust Fund shall be used to supplement the regular secondary road appropriations to each county, on a pro rata basis, so as to pave by 1999 all secondary roads with a traffic vehicular equivalent of 50 vehicles per day, at which time the supplemental funding will be discontinued. All funds shall be allocated solely based upon the ratio of the number of miles of unpaved secondary road mileage with traffic vehicular equivalent of 50 vehicles per day within a county bear to the total number of State-maintained unpaved secondary road miles with traffic vehicular equivalent of 50 vehicles per day.
"§ 136-181. Transportation Improvement Program.
Nine and thirty-nine one-hundredths percent (9.39%) of the Trust Fund shall be used to supplement the Transportation Improvement Program and the planning, design, and construction of the Intrastate System.
"§ 136-182. Continuation funding of Trust Fund.
Except to the extent needed to satisfy any current obligation of all outstanding bonded indebtedness pursuant to any pertinent Bond Act, within 30 days after the end of each calendar quarter, beginning with the calendar quarter ending September 30, 1989, the State Treasurer shall transfer from the Highway Fund and deposit to the credit of the North Carolina Highway Trust Fund, a sum equal to nine percent (9%) of net revenue credited to the Highway Fund during the immediately preceding quarter including the net proceeds of revenues from taxes on motor fuels collected pursuant to Articles 36, 36A, and 36B of Chapter 105 of the General Statutes, and the motor vehicle registration fees and other revenues collected pursuant to Chapter 20 of the General Statutes, including interest or income received and accruing on the State Highway Fund by reason of these revenues. These transfers shall be made from the Highway Fund prior to the availability of these funds for any other appropriation. The sums transferred pursuant to this section shall constitute recurring annual appropriations.
"§ 136-183. North Carolina Highway Trust Fund Oversight Committee.
(a) There is created the North Carolina Highway Trust Fund Oversight Committee. The members of this Committee shall be:
(1) The Chairman of the Transportation Committee of the Senate.
(2) The Vice-Chairman of the Transportation Committee of the Senate.
(3) The Ranking Minority Member of the Transportation Committee of the Senate.
(4) The Chairman of the Finance Committee of the Senate.
(5) The Chairman of the Appropriations Committee of the Senate.
(6) The Chairman of the Base Budget Committee of the Senate.
(7) The Chairman of the Infrastructure Committee of the House of Representatives.
(8) The Chairman of the Highways Subcommittee of the Infrastructure Committee of the House of Representatives.
(9) The Chairman of the Finance Committee of the House of Representatives.
(10) The Chairman of the Highway Fund Subcommittee of the Finance Committee of the House of Representatives.
(11) The Chairman of the Appropriations Committee of the House of Representatives.
(12) The Chairman of the Highway Fund Subcommittee of the Appropriations Committee of the House of Representatives.
The Chairmanship of the Oversight Committee shall alternate annually between the Chairman of the Senate Transportation Committee and the Chairman of the Highway Subcommittee of the Infrastructure Committee of the House of Representatives.
(b) The Committee shall meet at least quarterly to review reports prepared by the Department of Transportation relating to the matters contained in this Article.
The Committee shall:
(1) Monitor the collections and expenditures to the North Carolina Highway Trust Fund.
(2) Insure that the funds are spent in accordance with the provisions of this Article.
(3) Recommend to the General Assembly any revisions needed in the programs established by this Article based on funds available to the North Carolina Highway Trust Fund.
(c) The Committee shall prepare reports to be submitted to the 1991 General Assembly, the 1995 General Assembly, and the 1999 General Assembly, containing any necessary legislation needed to facilitate the construction of the projects authorized by this Article.
(d) The Committee, while in the discharge of official duties, may exercise all the powers provided for under the provisions of G.S. 120-19, and G.S. 120-19.1 through G.S. 120-19.4. The Committee may meet at any time upon the joint call of the Chairman. The Committee may meet in the Legislative Building or the Legislative Office Building.
(e) Members of the Committee shall receive subsistence and travel expenses at the rates set forth in G.S. 120-3.1.
(f) The Committee may contract for professional, clerical, or consultant services as provided by G.S. 120-32.02. The Legislative Services Commission, through the Legislative Administrative Officer, shall assign professional staff to assist in the work of the Committee. The House of Representatives' and the Senate's Supervisor of Clerks shall assign clerical staff to the Committee, upon the direction of the Legislative Services Commission. The expenses relating to clerical employees shall be borne by the Committee.
(g) All State departments and agencies and local governments and their subdivisions shall furnish the Committee with any information in their possession or available to them.
(h) The Committee shall be funded from funds available to the Legislative Services Commission.
(i) The President Pro-Tempore of the Senate may appoint an additional member of the Oversight Committee, to maintain numerical balance, when a member of the Senate holds more than one position listed in subsection (a) of this section."
Sec. 2. G.S. 105-434(a) reads as rewritten:
"(a) Tax. – An excise tax is levied on motor fuel
sold, distributed, or used by a distributor within this State at the rate of fourteen cents (14¢) seventeen cents
(17¢) per gallon plus three percent (3%)
seven percent (7%) of the average wholesale price of motor fuel, but
no less than the equivalent of three and one-half cents (3 1/2¢) per gallon of
the average wholesale price of motor fuel, as determined semiannually by
the Secretary of Revenue from information on refiner and gas plant operator
sales prices of finished motor gasoline and No. 2 diesel fuel for resale,
published by the United States Department of Energy in the ‘Monthly Energy
Review,' or on equivalent data. The Secretary shall determine the average
wholesale price of motor fuel by computing the average sales price of finished
motor gasoline for the base period, computing the average sales price for No. 2
diesel fuel for the base period, and then computing a weighted average of the
results of the first two computations based on the proportion of tax collected
under this Article on motor fuel and Article 36A on fuel for the base period.
The Secretary shall notify affected taxpayers of the tax rate to be in effect
for each six-month period.
To facilitate collection of the motor fuel tax, the Secretary shall convert the percentage rate to a cents-per-gallon rate to be in effect during the six-month period beginning each January 1 and July 1. The rate to be in effect during the six-month period beginning January 1 shall be computed from data published for the six-month base period ending on the preceding September 30, and the rate to be in effect during the six-month period beginning July 1 shall be computed from data published for the six-month base period ending on the preceding March 31. The cents-per-gallon rate computed by the Secretary shall be rounded to the nearest one-tenth of a cent (1/10¢). If the cents-per-gallon rate computed by the Secretary is exactly between two tenths of a cent, the rate shall be rounded up to the higher of the two."
Sec. 3. G.S. 105-446 reads as rewritten:
"§ 105-446. Refund of motor fuel used other than to propel a motor vehicle.
A person who purchases and uses motor fuel for a purpose
other than to operate a licensed motor vehicle may receive an annual refund,
for the tax paid during the preceding calendar year, at a rate equal to fourteen cents (14¢) seventeen cents
(17¢) per gallon plus the average of the two wholesale cents-per-gallon
rates of tax in effect during the year for which refund is claimed, less one
cent (1¢) per gallon. An application for a refund allowed under this section
shall be made in accordance with G.S. 105-440."
Sec. 4. G.S. 105-446.1 reads as rewritten:
"§ 105-446.1. Refunds of taxes paid by counties and municipalities.
The following entities shall be entitled to reimbursement for
the tax levied by G.S. 105-434 upon filing a statement in writing with the
Secretary of Revenue, which statement shall be made upon the oath or
affirmation of the chief executive officer of said entity, showing the number
of gallons of fuel purchased and used by said entity on which the tax levied by
G.S. 105-434 has been paid: the Board of
TransportationDepartment of Transportation, counties,
municipal corporations, volunteer fire departments, county fire departments,
volunteer rescue squads, and ‘sheltered workshop' organizations recognized and
approved by the Department of Human Resources. ‘Chief executive officer' shall
mean the Director of HighwaysSecretary
of the North Carolina Department of Transportation, the mayor, city manager
or other municipal officer designated by the governing body of the
municipality, the chairman of the board of county commissioners or other county
officer designated by the board of county commissioners, or the president or
other duly designated officer or agent of a volunteer fire department, county
fire department, volunteer rescue squad or ‘sheltered workshop' organization.
Reimbursement shall be at a rate equal to fourteen
cents (14¢) seventeen cents (17¢) per gallon plus the
wholesale cents-per-gallon rate of tax in effect during the quarter for which
the refund is claimed, less one cent (1¢) per gallon. An application for a
refund under this section shall be made in accordance with G.S. 105-440."
Sec. 5. G.S. 105-446.3.(a) reads as rewritten:
"(a) Any person, association, firm or corporation,
who shall purchase any motor fuels, as defined in this Article, for the purpose
of use, and the same is actually used, in the operation of motor buses
transporting fare-paying passengers, in connection with a city transit system
or in the operation of a taxicab transporting fare-paying passengers, both as
hereinafter defined in subsection (b) of this section, or in the operation, by
private nonprofit organizations, of motor vehicles transporting passengers
under contract with or at the express designation of units of local government
(such transportation above and hereinafter referred to as private nonprofit
transportation services) shall be entitled to reimbursement for the tax levied
by this Article upon filing with the Secretary of Revenue an application upon
the oath or affirmation of the applicant or his agent showing the number of
gallons of motor fuel so purchased and used. Reimbursement shall be at a rate
equal to fourteen cents (14¢) seventeen
cents (17¢) per gallon plus the wholesale cents-per-gallon rate of tax in
effect during the quarter for which the refund is claimed, less one cent (1¢)
per gallon. An application for a refund allowed under this section shall be
made in accordance with G.S. 105-440."
Sec. 6. G.S. 136-41.1(a) reads as rewritten:
"(a) There is hereby annually appropriated out of
the State Highway Fund a sum equal to the net amount after refunds that was
produced during the fiscal year by a one and three-fourths cents (1 3/4¢) tax
on each gallon of motor fuel as taxed by G.S. 105-434 and 105-435, nine
percent (9%) of the annual net revenues paid into the State Highway Fund to
be allocated in cash on or before October 1 of each year to the cities and
towns of the State in accordance with the following formula:
Seventy-five percent (75%) of said funds shall be distributed among the several eligible municipalities of the State in the percentage proportion that the population of each eligible municipality bears to the total population of all eligible municipalities according to the most recent annual estimates of population as certified to the Secretary of Revenue by the State Budget Officer. This annual estimation of population shall include increases in the population within the municipalities caused by annexations accomplished through July 1 of the calendar year in which these funds are distributed. Twenty-five percent (25%) of said fund shall be distributed among the several eligible municipalities of the State in the percentage proportion that the mileage of public streets in each eligible municipality which does not form a part of the State highway system bears to the total mileage of the public streets in all eligible municipalities which do not constitute a part of the State highway system.
It shall be the duty of the mayor of each municipality to report to the Department of Transportation such information as it may request for its guidance in determining the eligibility of each municipality to receive funds by virtue of G.S. 136-41.1 and 136-41.2 and in determining the amount of allocation to which each is entitled. Upon failure of any municipality to make such report within the time prescribed by the Department of Transportation, the Department of Transportation may disregard such defaulting unit in making said allotment.
The funds to be allocated under this section shall be paid in cash to the various eligible municipalities on or before October 1 each year after March 15, 1951. Provided that eligible municipalities are authorized within the discretion of their governing bodies to enter into contracts for the purpose of maintenance, repair, construction, reconstruction, widening, or improving streets of such municipalities at any time after January 1 of any calendar year in total amounts not to exceed ninety percent (90%) of the amount received by such municipality during the preceding fiscal year, in anticipation of the receipt of funds under this section during the next fiscal year, to be paid for out of such funds when received.
No allocation to cities and towns shall be made under the provisions of this section from the one cent (1¢) per gallon additional tax on gasoline imposed by Chapter 46 of the Session Laws of 1965, unless and until said additional one cent (1¢) per gallon tax produces funds which are not needed for or committed by said Chapter 46 of the Session Laws of 1965, to the payment of the principal of or the interest on the secondary road bonds issued pursuant to the provisions of said Chapter 46 of the Session Laws of 1965. The Department of Transportation is hereby authorized to withhold each year an amount not to exceed one percent (1%) of the total amount appropriated in G.S. 136-41.1 for the purpose of correcting errors in allocations: Provided, that the amount so withheld and not used for correcting errors will be carried over and added to the amount to be allocated for the following year.
The word ‘street' as used in this section is hereby defined as any public road maintained by a municipality and open to use by the general public, and having an average width of not less than 16 feet. In order to obtain the necessary information to distribute the funds herein allocated, the Department of Transportation may require that each municipality eligible to receive funds under G.S. 136-41.1 and 136-41.2 submit to it a statement, certified by a registered engineer or surveyor of the total number of miles of streets in such municipality. The Department of Transportation may in its discretion require the certification of mileage on a biennial basis."
Sec. 7. G.S. 136-44.2A reads as rewritten:
"§ 136-44.2A. Secondary road construction.
There shall be annually allocated out of the State Highway
Fund to the Department of Transportation for secondary road construction
programs developed pursuant to G.S. 136-44.7 and 136-44.8, a sum equal to that
allocation made under G.S. 136-41.1(a). Such
secondary roads allocation shall be made in accordance with the provisions of
G.S. 136-44.5. The sum of sixty-eight million six hundred seventy
thousand dollars ($68,670,000) allocated to secondary road construction shall
be distributed in accordance with the provisions of G.S. 136-44.5. All funds
for secondary road construction in excess of sixty-eight million six hundred
seventy thousand dollars ($68,670,000) shall be allocated solely based upon the
ratio of the number of miles of unpaved secondary road mileage with traffic
vehicular equivalent of 50 vehicles per day within a county bear to the total
number of State-maintained unpaved secondary road miles with traffic vehicular
equivalent of 50 vehicles per day."
Sec. 8. Chapter 20 of the General Statutes is amended by adding a new section to read:
"§ 20-72.1. Transfer Fee.
(a) The Division shall collect a fee for the issuance of a vehicle title in the following manner:
(1) On new and used vehicles sold by registered dealers, those dealers shall collect a fee equal to two percent (2%) of the ‘sale price' of the vehicle as defined and determined in Article 5, Schedule E of Chapter 105 of the General Statutes and remit the fee along with the registration fees to the Division.
(2) On transfers of title after sales between persons other than registered dealers, the Division shall collect a fee equal to two percent (2%) of the average fair market value of each vehicle, as determined by the Division, for which an application for certificate of title is filed.
(3) There shall be a minimum title transfer fee of twenty-five dollars ($25.00).
(b) The fee imposed by this section shall be in addition to any other fees imposed by law. The fees imposed by this section shall be collected before a certificate of title is issued. The funds derived from this fee shall be deposited in the North Carolina Highway Trust Fund for the exclusive use of the purposes set out in G.S. 136-176, and disbursed on vouchers drawn by the Board of Transportation in accordance with the acts of the General Assembly dealing with the subject matter herein referred to.
(c) The Division may issue rules concerning the collection of the fees described in subsection (a) of this section including procedures covering the methods by which the fees may be paid and the collection of uncollectable checks and drafts issued to the Division or contractors with the Division for the title transfer fee.
(d) The Division shall begin collecting the transfer fee no later than 60 days following ratification of this act."
Sec. 9. The Department of Transportation shall develop a formula to provide that the funds for the construction programs authorized by this act are spent in a fair manner.
Sec. 10. Chapter 136 of the General Statutes is amended by adding a new section to read:
"§ 136-44.16. Toll roads authorized.
The Department of Transportation shall determine on which highways and bridges it is legally and economically feasible to collect tolls and shall report to the General Assembly along with the necessary legislation to implement the collection of the tolls including the creation of a North Carolina Toll Roads Authority to collect the tolls."
Sec. 11. This act is effective upon ratification and the taxes imposed by Sections 2 and 3 of this act and the fee imposed by Section 8 of this act shall be collected beginning no later than 60 days after the ratification date of this act.