NC H399

Caps the motor fuel excise tax rate at a maximum of 15 cents per gallon for the variable wholesale component.

Maintains the existing flat rate of 17.5 cents per gallon plus a variable wholesale component that is the greater of 3.5 cents per gallon or 7% of average wholesale price.

The variable wholesale component cannot exceed 15 cents per gallon, effectively creating a total maximum excise tax rate of 32.5 cents per gallon.

Tax rates continue to be set twice yearly by the Secretary based on six-month base periods ending September 30 and March 31, with rates applying to subsequent six-month periods beginning January 1 and July 1.

Effective date is July 1, 2011, applying to taxes imposed on or after that date.