Gas Tax Cap Opposed (HIGH POINT ENTERPRISE)

HIGH POINT, N.C. — City leaders are hoping state lawmakers don’t enact a bill they argue would harm a major transportation funding source.

The High Point City Council next month will consider adopting a resolution in opposition to N.C. House Bill 399, which would cap the state gas tax at the current rate of 32.5 cents per gallon. The tax funds state and local transportation initiatives, from resurfacing of streets to major construction projects. It’s also the main source of Powell Bill revenues, which cities use for maintenance of local streets. Capping the gas tax at its current rate could cost the state up to $100 million per year, while saving only 20 cents per week for the average driver, according to the N.C. Metropolitan Mayors Coalition.

 The possible revenue loss looms large in High Point, which has an estimated 60 miles of streets with deteriorated pavement conditions.

 “Just look at the intersection of Johnson and Eastchester. That’s just one. You could find 1,000 more all over town,” Councilman Latimer Alexander said. “If we don’t fund transportation, we’re going to lose out.”

The city put off asphalt-resurfacing work for two years to save money. Until 2009, the city budgeted up to $2 million annually for resurfacing and typically paved about 10 miles of roadway per year.

Officials said there is a critical need to resume the funding, but finding the money is difficult because of uncertainty in the state and local budgetary outlook. It would take an estimated $9 million to bring the city’s backlog of substandard streets up to good condition.

North Carolina has the highest gas tax rate in the Southeast and the third most roads in the nation, according to city transportation officials. The proposed legislation would place a 15-cent cap on the portion of the gas tax rate that is adjusted every six months as the wholesale price of gasoline changes.

The other part of the tax is a flat 17.5-cent rate that does not fluctuate. With wholesale prices on the rise recently, the tax is expected to go up this summer unless the legislature takes action to approve a cap.