Motor Fuels Tax Rate Drops to 35 Cents per Gallon

December 15, 2015

The North Carolina motor fuels tax rate for gasoline, diesel, and alternative fuels will decrease from 36.0 cents per gallon to 35.0 cents per gallon for the period Jan. 1, 2016 through June 30, 2016, Department of Revenue Secretary Lyons Gray announced today.

During the 2015 legislative session, North Carolina Senate Bill 20 was enacted through Session Law 2015-2, which set the motor fuels tax rate at 35.0 cents per gallon. The flat rate is effective through June 30, 2016.

Taxpayers should begin using the new tax rate for gasoline, diesel, and alternative fuels reports for transactions occurring in January 2016 that are to be filed with the Department of Revenue in February 2016. The state motor fuels tax is included in the retail price paid by consumers at the pump.