GENERAL ASSEMBLY OF NORTH CAROLINA

SESSION 2011

H                                                                                                                                                   D

HOUSE DRH80080-ME-59A  (03/11)

Short Title:        Cap Motor Fuel Excise Tax Rate.		(Public)
Sponsors:	Representatives McElraft, Killian, Hager, and Stone (Primary Sponsors).
Referred to:

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.