North Carolina sets motor fuel tax at zero October 10–November 30

North Carolina sets the motor fuel tax at zero and requires sellers to pass on the savings. Retailers need not lower prices when fuel costs include tax owed before the suspension. Tax returns remain required. The suspension period is ignored when calculating the 2027 motor fuel tax rate. Except for dyed diesel, motor and alternative fuels count as taxed for sales tax exemptions and rules against using or dispensing untaxed fuel. The zero rate applies from October 10 through November 30, 2026.

State officials must transfer money from the Stabilization and Inflation Reserve. The six covered funds support roads, environmental protection, and waterway maintenance. The amount must equal each fund's missed share of fuel tax revenue and support that fund's existing purposes. Officials must make transfers monthly, as soon as practical, to cover the payments missed because of the suspension.

State officials cannot impose the listed fines or criminal penalties for covered dyed diesel use or fueling. Protection covers farm use in highway vehicles and anyone putting or allowing dyed diesel into any highway vehicle's fuel tank. Farm-use vehicles must be licensed or required to be licensed. Farm purposes include forestry, fish farming, and related farm businesses. This protection runs from October 9 through December 31, 2026.

Certificate holders owe no state motor fuel tax on dyed diesel used in licensed highway vehicles. The Revenue Department must have issued a tax exemption certificate for a qualifying or conditional farmer, commercial logger, commercial fisherman, or wildlife manager. Users must still file fuel tax returns. The exemption covers use from October 1 through December 31, 2026, including days before the law's October 9 approval.