Gaston County Republican lawmaker John Torbett admits his plan to fix North Carolina’s roads will hit every driver in the state square in the wallet.
A bill Torbett sponsored last month cuts the state’s fuel tax while increasing fees and taxes for about everything else related to operating a car — from buying a vehicle to getting a license to purchasing insurance.
“I don’t like this bill,” Torbett said.
But at the same time, North Carolina needs to spend millions to catch its highways up in maintenance needs, said Torbett, chairman of the House Transportation Committee.
“I wish I didn’t have to do this, but it doesn’t take a rocket scientist to drive around and see that our roads need repair.”
Torbett named his plan an act to “Reestablish North Carolina as the Good Roads State.”
While it’s not a done deal, he said the plan does have support from House Republican leadership.
IF IT PASSES:
State fuel tax
Slashed to 30 cents per gallon starting July 1, a reduction of 6 cents from current rates.
Highway Use Tax
Raises sales tax from 3 percent to 4 percent.
WHAT THAT MEANS: $300 more tax on a $30,000 pickup
Other provisions
Short term lease — 8 percent to 9 percent
Long term lease — 3 to 4 percent
Out-of-state vehicles — $150 to $200 (max)
DMV Fees
50 percent across-the-board increases
5-year driver’s license NOW $20, WOULD BE $30
Learner’s permit NOW $15, WOULD BE $22.50
Duplicate license NOW $10, WOULD BE$15
License restoration fee NOW, $100 NOW $150
Car title
NOW $40, WOULD BE $60
Car registration
NOW $28 WOULD BE $42
Late fees
(New fees for registering cars late) NOW $0, WOULD BE $15 to $25.
INSURANCE
New 6.5 percent tax on auto insurance
Average cost: $110 a year
(DETAILS: The approximate average price of an auto policy in North Carolina is $1,628 (based on 2013 figures), so a 6.5 percent tax on that is about $108. The annual total premium collected by car insurers is approximately $4.7 billion. A 6.5 percent tax applied to that would generate about $305 million a year.)
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