
Garland resident Ralph Smith fills up his truck in Clinton because he says it is cheaper here than in Garland even though it is coming from the same company. Smith also felt that the gas tax was another way for government officials to ‘waste’ money.
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Gas pumps were busy in Sampson County Tuesday night and into Wednesday, as residents, afraid of the potential spike in gas prices, tried to fill up their tanks at least once more at prices ranging from $2.57 to $2.62.
With the Fourth of July holiday fast approaching, and a state gas tax that didn’t drop as expected, residents fear the worst from gas prices that they say don’t need to continue to climb as they did last year.
As of July 1, a state tax that was scheduled to go down, went up. North Carolina’s gasoline tax became the most recent fix in the state’s financial crisis. The tax was set to drop Wednesday from 29.9 cents per gallon to 27.8 cents, but legislation signed into law earlier this month now sets the minimum for the next two years at 29.9 cents.
This new rate is the new gas tax base, and there will be no limit to how high it can go. The old law set a cap that did not allow the tax to go over a set amount but the action of the Legislature changed it so now there is a base that the tax cannot go below with no top cap.
Officials with the N.C. Department of Transportation said that because of it, the state lost $400 million in potential revenue over the past six months that could have been used to fix roads. The DOT predicts keeping the tax at 29.9 cents will generate an estimated $50 million from July 1 to Dec. 31.
The gas tax, which is tied to the wholesale price of fuel, is set every six months. The next time it can be increased is December. North Carolina drivers are paying an average of $1.35 per gallon less than this time last year. Without a cap, a gallon would have been more than 10 cents higher.
John Clark, operations manager for Sampson-Bladen Oil Company, said it’s a difficult time to see more price increases.
“Obviously it is disappointing that taxes have to be raised when so many are facing financial difficulties,” Clark said. “ The gas tax is something we refer to as a pass-through tax. We do not have anything to do with the tax but have to include it in the price we charge for the fuel. Then the tax passes through to the state. Ultimately it is the consumer who has to pay.”
Sampson-Bladen operates several gas outlets in Clinton through BP, Han-dee Hugos and Exxon.
Stephanie Reed of Raeford, who was traveling through Clinton Tuesday, stopped at a local gas outlet and expressed her dissatisfaction with the increase in the gas tax cap. “It is a crock, anything for a buck. The prices we have to pay for gas is outrageous and now to add more taxes to it. I thought the lottery was supposed to generate funds for education yet we see now where cuts in education and teachers are losing their jobs. What happened to that money? Whose pocket is it in? What good is a tax if it is not used for what it was intended?”
The same sentiments were expressed by other customers at stations around Clinton. Dwight Miller of Clinton shared, “I feel like we are getting taxed from everywhere. The gas tax makes sense if it is to go help build and maintain our roads. Somehow it seems that it always comes right back to us even after the taxes have been paid. If we have to raise taxes, it would be better if the government could do it at a slower rate and not increase them so much so quickly. I do not see toll roads as an answer as I feel they are relics of the past. Maybe we should tax the Iranians and Iraqis for protecting them. I understand their countries made money last year.”
In speaking with customers at local stations, none stated that they were in favor of the gas tax cap change.
Only the future, many said, will provide wisdom in howeliminating the gas cap tax will benefit the state and its coffers. But residents were certain of one thing — their belief that taxpayers will pay at the pump in coming months.
Staff writer Billy Todd contributed to this article. To contact Billy Todd, call 910-592-8137 ext. 117 or e-mail sigeneral@myclintonnc.com.
Are you off your meds again?
(1) The government raises taxes.
(2) People can't afford gas as before, so they cut back.
(3) The government now has less revenue from taxes due to people cutting back.
Lather, rinse, repeat.
This happened last year when gas prices went sky high. The D.O.T. reported they had a loss of revenue from people buying less, and requested a tax increase on gas to make up for the loss.
Solution: Weight watchers.
It's good for you and the environment.