Gasoline Tax to Increase Jan. 1

North Carolina will have sixth-highest rate in the nation

RALEIGH, N.C. -- Just when gas prices began to hold steady, they will soon rise again in North Carolina.

This time, however, the oil industry isn't to blame, according to a WTVD-TV report. It's the state tax that's increasing by nearly four cents on Jan 1.

When that new tax takes effect, North Carolina's gasoline tax rate will be the sixth highest in the nation--almost 40 cents a gallon.

With South Carolina's tax rate 22 cents cheaper, and Virginia's 19 cents less, the head of the state association representing gas stations and convenience stores said the increase could actually hurt both sales tax and gas tax revenue.

"They don't stop and buy food. They don't stay in our motels or hotels. They don't shop in our convenience stores," Gary Harris of the North Carolina Petroleum Marketers Association told the TV news station.

Some convenience stores are already posting signs asking customers to call their legislators and urge them to once again try to pass a gas tax cap.