NCDOR Announces Motor Fuels Tax Rate for 2017

December 15, 2016

The North Carolina motor fuels tax rate for gasoline, diesel, and alternative fuels will increase from 34.0 cents per gallon to 34.3 cents per gallon for the period January 1, 2017 through December 31, 2017, Department of Revenue Secretary Jeffrey M. Epstein announced today.

During the 2015 legislative session, North Carolina Session Law 2015-2 was enacted which set the 2017 motor fuels tax rate at a flat rate of 34 cents per gallon multiplied by a percentage. The percentage is plus or minus the sum of the annual percentage change in state population for the applicable calendar year, multiplied by 75 percent and the annual energy index percentage change in the Consumer Price Index for All Urban Consumers, multiplied by 25 percent. The tax rate is effective through December 31, 2017.

Taxpayers should begin using the new tax rate for gasoline, diesel, and alternative fuels returns for transactions occurring in January 2017 that are to be filed with the Department of Revenue in February 2017. The state motor fuels tax is included in the retail price paid by consumers at the pump.

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