North Carolina tax increases considered to pay for road costs

Faced with a multibillion-dollar shortfall for highways, a North Carolina panel, the 21st Century Transportation Committee, started discussions Aug. 21 to find a solution for how to pay for road and bridge construction and maintenance.

The projected construction shortage over the next 22 years is $64 billion. Chairman Brad Wilson said all tax options are being considered to alleviate it.

"Sticking our head in the sand under the banner of ‘No new taxes' or ‘No new fees' is, I think, both irresponsible and a formula for failure," Wilson said after the meeting.

One option the committee will consider is charging drivers for how much they drive. Motorists would be taxed for every mile they drive over the state’s average.

Other options are to put tolls on roadways in need of maintenance, and raising local property taxes.

North Carolina's primary road-financing sources—the vehicle sales tax and the per-gallon fuel tax, capped at 29.9 cents—have declined or been stagnant over the last five years. This can be partially attributed to motorists buying more fuel-efficient vehicles and curbing gas consumption amid increased oil prices.

"Those revenue streams are not going to sustain us," Wilson said about the state's current financing sources. "They're not sustaining us now."