It’s only 2 cents, but North Carolina gasoline tax went up January 1, 2023. The previous rate was 38.5 cents per gallon; the new rate is 40.5 cents.
There is a formula that calculates the change. According to the North Carolina Department of Revenue press release, “The motor fuel excise tax rate is calculated by using the motor fuel excise tax rate of the preceding calendar year, multiplied by a percentage. The percentage is 100 percent plus or minus the sum of the annual percentage change in State population for the applicable calendar year, multiplied by 75 percent and the annual energy index percentage change in the Consumer Price Index for All Urban Consumers, multiplied by 25 percent.”
We found it interesting that one of the multipliers in the formula is the change in the state population. We also had to look up the Consumer Price Index for All Urban Consumers. This index is a measure of how prices change for various categories of items.
Bottom line, the tax increase is based on the population of North Carolina and inflation.
It’s not just gasoline. Prices are going up on just about everything, so it’s more important than ever to keep your vehicle in top condition, and making sure it gets the best gas mileage possible. And that is our two cents worth!