Is Your Fuel Stop Keeping the Tax Break?
North Carolina Attorney General Jeff Jackson’s office has opened inquiries into several gas stations following consumer complaints that some retailers may not have passed along savings from the state’s temporary gas-tax suspension.
Consumers Report Possible Pricing Issues
The Justice Department said consumers have used a reporting website to document incidents involving gas stations that may not have reflected the tax savings in retail fuel prices. The complaints prompted the department to begin its first round of inquiries into retailers across the state.
“This gas tax suspension is going to cost the state a lot of money,” Jackson said. “We want to make sure that that money doesn’t end up as windfall profits to gas stations, that it goes where it’s intended, which is the pocketbooks for families.”
Temporary Relief Targets Gasoline and Diesel
The tax break was intended to reduce the cost of fuel for consumers, including motorists and commercial operators. Reports describing the measure cited a reduction of as much as 41 cents per gallon for drivers, although the exact savings may vary depending on the applicable state tax provisions and timing.
Any savings on diesel are particularly relevant to trucking, agriculture and other industries that rely on fuel-powered equipment. Diesel also remains a primary energy source for the trucks that transport food, manufactured goods and other products throughout North Carolina and the rest of the country.
Federal Fuel Tax Remains Separate
The federal government collects an excise tax on fuel sold at U.S. stations. The federal gasoline tax is 18.4 cents per gallon, a rate established in 1993. The federal diesel tax is separate from the gasoline rate.
North Carolina’s inquiries focus on whether retailers properly passed along savings from the state’s temporary tax suspension. The investigations do not represent a final finding that any retailer violated the law.
