North Carolina legislature approves bill to suspend gas tax

This browser does not support the video element.

CHARLOTTE — The North Carolina General Assembly on Wednesday passed a bill that would suspend the state’s gas tax until the end of next month.

The bill will now head to Gov. Josh Stein’s office for his signature.

Legislators called for a special session that began Wednesday to address the price of gas, which averages $4.12 in the state, according to AAA.

Fuel prices in the U.S. have risen sharply in 2026 in the wake of President Donald Trump’s war in Iran, which affected shipping routes and oil refineries in the Middle East, along with ongoing attacks in the Russia-Ukraine war affecting refineries and supplies.

The state gas tax in North Carolina is 41 cents per gallon, according to the Department of Revenue.

Legislators passed a bill to suspend the motor fuel tax until Nov. 30, 2026. The bill also waives penalties for highway use of dyed diesel that’s meant for agricultural purposes until Dec. 30.

To replace the revenues from suspending the gas tax, the legislature is asking for the state to transfer money from the Stabilization and Inflation Reserve.

The bill passed in the House Wednesday afternoon, and then passed in the Senate unanimously just before 4 p.m.

The North Carolina Department of Transportation says that 41 cents in gas tax could buy $225 million dollars for road projects, But drivers said they need relief now, and they approve of that vote.

“Hell yeah, I’m all for that. I’m for anything to lower the price of gas,” driver Barry Pope told Channel 9’s Ken Lemon.

“Every time I go to the tank it’s $100,” driver Shannon Smith said.

Courtney Rowell is a landscaper. He said he spends $300 to $400 a week on gas.

“I probably have eight to 10 little engines I put gas in once a week,” Rowell told Channel 9.

With competition, he can’t afford to pass that cost to his customers.

“One of my trucks is diesel, so it’s taking a toll on me,” Rowell said.

Republican lawmakers initiated the call for a special session to vote on this bill, but Democrats in the House joined in to vote yes.

“Of course we are voting yes because we will take relief we can get for the people we serve,” Rep. Robert Reives II, D-Chatham County, said.

But the Democratic representative said the vote should have happened months ago. Gaston County Democratic Party Chairman David Brown believes this was a last-ditch effort by Republicans who have been in power to get votes.

“It’s a Band-Aid. It is something that they are putting in place to make voters forget all of the mistakes that have led up to this point,” Brown said.

He worries cutting the gas tax will hurt plans for road construction.

“Things can get put months or even years behind schedule,” Brown said.

The Republican sponsor of this bill says the state can absorb this gas tax moratorium.

The governor says he may not sign unless he has full details about the law. Pressure from people hurting at the pumps may influence his decision.