The NC Chamber continues to lead in advocating for diversified, sustainable investment in our state’s transportation networks and commends the North Carolina legislature for its continued efforts to modernize transportation funding. Passed into law earlier this week, the state budget includes several key provisions that will provide funding to help ensure people and products can move safely and efficiently across our state.

As growing numbers of motorists adopt electric vehicles (EVs) and vehicle manufacturers commit to ever-higher EV production targets, traditional funding options like the motor fuels tax are becoming less and less viable. And unfortunately, North Carolina is highly dependent on the motor fuels tax to fund transportation projects. To remain competitive, we must secure steady infrastructure investment for the state.

The budget reforms passed this year are key in continuing the momentum of the sales tax dedication  last year and significantly bolstering transportation revenue decades into the future. We will be at 6% by the end of fiscal year 2025. This is a significant win.

Most notably, we are pleased to see the electric vehicle registration partial access user fee increased from $140.25 to $180 annually in this year’s budget. Additionally, a new hybrid vehicle registration partial access user fee will now be imposed at $90 per vehicle per year. The quadrennial inflation index for DMV fees is 2024, so these partial access user fees will be adjusted upward significantly, getting us closer to leveling the playing field for all users of the network. It’s imperative that we continue this work so that maintenance of our transportation network continues. The NC Chamber will continue to champion the Access User Fee concept, but bold leadership is needed to enact the access user fee or a similar revenue generator that is fair, resilient, and meaningful. Learn more about this significant win and the access user fee concept here.

The budget also includes a provision that introduces a new tax on for-hire ground transportation services, including transportation network companies such as Uber and Lyft. The tax would be 1.5% for an exclusive ride and 1% for a shared ride.

Click here for a full recap of line-item budget wins based on the NC Chamber’s 2023 Legislative Agenda. We appreciate the opportunity to advocate on your behalf and are pleased with the policies our team has advanced this legislative session. To receive the NC Chamber’s latest transportation and infrastructure updates, subscribe here.