NC Republicans tout a gas tax cut that Democrats call an election-season desperation move

As lawmakers gathered in Raleigh Wednesday to debate temporarily suspending the state gas tax, Republicans and Democrats both said they supported the idea. But while Republican leaders touted the economic relief it’ll give North Carolina drivers and businesses, Democrats say GOP leaders are motivated by election fears, not concern for their constituents. 

The bill would suspend the 41-cent gas tax until the end of November. The state uses gas tax revenue to build and maintain roads. The $362.3 million cost of suspending the tax will be backfilled by taking the money from a state reserve fund, legislators said. 

Senate leader Phil Berger, R-Rockingham, dismissed cutting the tax a few months ago, but now says lawmakers’ constituents need help.  

“There is great momentum to do this at this time,” Berger said at a news conference Wednesday morning. The legislature is expected to pass the bill Wednesday.

‘Election Day gimmick’? As NC lawmakers eye gas tax cut, Stein questions timing

Democrats said Republicans’ sudden decision to suspend the tax stems from fears that their candidates will lose seats in November.

Republicans could have included the gas tax suspension in the state budget the legislature passed in July, but they did not. Instead, Republican legislative leaders announced the special session last weekend, just one month before Election Day.

Senate Democratic Leader Sydney Batch said if Republicans really wanted to help constituents, they could have done it months ago.

“Republicans at this point in time are shameless, and they are cowards,” Batch said at a separate news conference. 

“They are failing to deliver for their constituents because they would rather hold on to every single ounce of power and use it as a cudgel,” the Wake County Democrat said. 

Sen. Lisa Barnes, R-Nash, also spoke at the Senate Republican news conference. Barnes is being challenged by Democrat James Gailliard, a former state House member, in what’s expected to be a close race that could decide whether Republicans maintain their veto-proof majority in the Senate. 

“This bill is an incredible lifeline for farmers and producers across our state,” she said. “Many of us are already reeling from the impact of the drought, and increased fuel costs just add another burden at exactly the wrong time.”

In May, Berger rejected the idea of repealing the gas tax, calling it “more a feel-good kind of thing than something that would actually make a whole lot of difference with reference to individuals.”

Asked about that Wednesday, Berger said, “The pressure on individual citizens is much greater now that it was then. And it still feels good.”

Under the bill, retailers won’t have to cut prices on gas they’ve already purchased and on which they’ve already paid the tax. 

Berger said he didn’t expect prices to drop immediately. 

“I’m fairly certain you’re not going to see 41 cents off tomorrow, but it should come down at some point,” Berger said. “But we’ve got to recognize that market forces also have a huge impact on what the ultimate cost of fuel is, and we’ll see.”

Drivers shop for gas, Berger said. If drivers see that one station is charging a penny less per gallon than a gas station nearby, they’ll buy the less expensive gas. 

Speaking in front of the Legislative Building, North Carolina Democratic Party chair Anderson Clayton criticized GOP leaders for their inaction on other pieces of legislation that address affordability. 

“I hope that nobody is buying what Republicans are trying to do right now in this legislature, which is to cover the fact that they’ve not done a thing for people across North Carolina for the last nine months or the last two years,” she said.