As North Carolinians pay less at the pump yet use the transportation systems more, there is less funding available and greater demand for our aging transportation network.
RALEIGH – For generations, the state's gas tax has been the primary way for the N.C. Department of Transportation to maintain roads and bridges and its other modes of travel.
But the motor fuels tax – accounting for 43% of all state revenues dedicated to NCDOT – is becoming less stable and reliable, as vehicles become more fuel efficient, and some use no fuel at all. The state, however, levies a surcharge on plug-in hybrid and all-electric vehicles to help offset gas tax collections.
Most states are grappling with this looming issue of less reliable transportation revenue. That is why North Carolina is partnering with The Eastern Transportation Coalition. The coalition is a multistate membership exploring sustainable, long-term funding options that better support the demands for a growing state like North Carolina and a robust transportation network.
NCDOT has launched a new website, advancenctransportation.com, to better inform the public about transportation funding. The website answers several important questions, such as:
- How is North Carolina's transportation network currently funded?
- How do citizens benefit from a vast, modern transportation network?
- What are some alternative ways to fund transportation in a more sustainable manner?
From the website, people may take a short survey to share their opinions about the future of funding for transportation. The website also includes this video explaining the looming issue of less-reliable transportation revenue.
In addition, the website offers an interactive online calculator that lets people explore how gas tax costs compare with other potential options.
Transportation leaders are discussing these important issues as North Carolina moves toward a cleaner, more equitable economy under Executive Order 246 signed by Gov. Cooper in 2022. As part of that order, NCDOT drafted the N.C. Clean Transportation Plan to help guide a more coordinated approach to reducing greenhouse gas emissions and expanding clean-energy infrastructure such as electric charging stations, among other initiatives.