NC H203

Increases motor fuel excise tax from 17.5 cents per gallon (plus variable wholesale component) to a flat rate of 18.5 cents per gallon, effective July 1, 2015.

Repeals Article 36C of Chapter 105 of the General Statutes (removes variable wholesale pricing mechanism for fuel tax).

Creates new annual Transportation Usage Fee of $89.00 per vehicle (effective July 1, 2015), increasing to $201.00 per vehicle (effective July 1, 2016), paid with vehicle registration fees.

Allocates $22.25 per vehicle from the $89.00 fee (or $50.25 from the $201.00 fee) to the North Carolina Highway Trust Fund, with remainder going to the North Carolina Highway Fund.

Directs Division of Motor Vehicles to implement rules allowing electronic billing and payment options (monthly or quarterly installment plans) for the Transportation Usage Fee.