Residents Drive South to Avoid NC Higher Gas Tax

The state's gasoline tax rose to 32.5 cents a gallon Jan. 1.

January 10, 2011

LUMBERTON, N.C. -- North Carolina raised its gasoline tax to 32.5 cents a gallon on Jan. 1 and the increased amount has residents driving South for lower fuel prices, South Carolina Now reports. The state tax is tied to a formula based partly on the price of wholesale gasoline, with the tax recalculated automatically semi-annually.

Two years ago, legislation mandated that the gasoline sales tax be at least 29.9 cents per gallon. Some question why residents have to pay more in gasoline taxes than neighbor states, like South Carolina with a gas tax of 16.76 cents per gallon.

"When you can go to South Carolina and get it cheaper, why are we paying so much over here?" asked Maria McLain, a North Carolina resident. She??s considered driving 17 miles to cross the state line to save at the pump.

North Carolina??s average price for a gallon of regular gasoline reached $3.08 last week, while in South Carolina, that number was 9 cents cheaper at $2.99 per gallon.

Meanwhile, South Carolina gasoline stations are crossing their fingers that the tax will drive more business their way. "We have a lot of people come in and talk about how much higher the gas prices are in North Carolina," said Angie Corder, who works at gasoline station across from the North Carolina border. "We do sell a lot more I think too, not just gasoline, but other things, too."

The North Carolina legislature will revisit the state??s gasoline sales tax when the current rate expires in June. Meanwhile, South Carolina lawmakers are likely to consider a bill that would raise that state??s gas tax to 22.5 cents a gallon. South Carolina??s rate hasn??t been raised in two dozen years.

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