Let’s face it. North Carolina’s gas tax rate is above the national average – but do you know why?

As county budgets were all but wiped out during the Great Depression, roads were neglected. To relieve the burden from counties, in the 1930s, the state took on the responsibility for building and maintaining county roads. At the time, this was an unusual move. By improving the former county roads and expanding the state transportation system, North Carolina earned the national recognition as the ‘Good Roads State.’

Even now, most states authorize county governments to maintain roads through property tax and other local taxes. In fact, North Carolina is one of only four states that manage more than 50% of its road network: 78% of North Carolina’s roads fall under state jurisdiction. The remaining roads are owned by municipalities, the federal government, or by private entities. Property taxes and other local taxes may be used to support municipal roads, but not state maintained roads.

North Carolina now maintains the 2nd largest road network in the country, only behind Texas. Supporting this expansive network requires funding – and that’s where the state gas tax comes in. The state also manages over 110 DMV offices, the N. C. Turnpike Authority, N. C. Ports Authority, and N. C. Global TransPark Authority.