Auto-Related Sales Tax
We have the opportunity to invest more than half a BILLION dollars in Transportation infrastructure – without raising any new taxes. In the last fiscal year, more than $526 MILLION in sales tax revenue was collected from automotive-related purchases such as tires, auto supplies, auto repair shops and more.
NC can take a HUGE step towards modernizing our transportation finance system and address NC’s growing transportation needs by dedicating this transportation-related tax revenue to vital transportation projects.
Why it Matters: North Carolina is facing a transportation funding crisis and we must modernize and diversify our revenue streams to keep our roads, bridges, public transportation and all-modes of transportation adequately funded in the years to come.
- The gas tax – our BIGGEST source of transportation funding – is under pressure from hybrid and electric vehicles, and increasing vehicle fuel-efficiency.
- Inflation is driving up the costs for asphalt, diesel fuel, concrete, steel AND labor – and is busting transportation project budgets.
- After years of storms ravaging our transportation network, projects must be designed and built to be resilient against damage – and that is driving up costs by 10-50%.
There has never been a better time to dedicate this money to transportation needs. NC’s tax revenue collections are expected to exceed $2.4 billion by June 30, 2022, with a surplus projection of around $6.5 billion by June 2023.