Suspending the gas tax benefits the richest and out-of-state residents most while offering little relief at the pump for lower-income North Carolinians.

Estimated share of the $360 million used to suspend the 41 cent-per-gallon motor fuel excise tax through November 30 that each income quintile receives. (The average tax cut is included in parentheses.)

Given the roughly $360 million in Stabilization and Inflation Reserve dollars that state leaders used to replace lost revenue from suspending the gas tax, this analysis estimates how much of the $360 million is passed along as tax savings in drivers' pockets. The estimated shares of the gas tax cut may not total to 100 percent due to rounding to the nearest whole percent. Non-NC residents can include out-of-state fuel consumers, such as tourists and truckers, as well as out-of-state owners and shareholders of businesses, including oil companies and commercial fuel users. Because non-NC residents include a wide range of fuel consumers, an average tax cut cannot be reliably estimated.
Chart: NC Budget & Tax CenterSource: Special data request to ITEPGet the data Download image