NC commission recommends $20B for infrastructure improvement
North Carolina – For the state to achieve a minimum rating of “good” infrastructure, it must raise its level of investment by $20 billion over the next 10 years.
The NC First Commission’s final report recommends a 40 percent increase to the North Carolina Department of Transportation (NCDOT) budget which would be funded by raising taxes, fees, and tolls.
Specific suggestions include:
- Raising the Highway Use Tax by 2 percentage points.
- Eliminating the net-of-trade exemption.
- Transferring proceeds from short-term vehicle rentals, vehicle subscription services, and car sharing to NCDOT.
- Increasing the state sales tax rate and reducing the motor fuels tax rate.
- Transferring sales tax revenues from transportation-related goods and services to NCDOT.
Other NC First recommendations include authorizing a pilot mileage-based user fee program for electric and plug-in hybrid vehicles and for transportation network companies, adopting a permanent fee to fully replace the motor fuels tax by 2030, and reauthorizing and recapitalizing the state-funded State Infrastructure Bank.
Commissioners encouraged an increased use of public-private partnerships (P3s) by removing the statutory cap on partnership projects. In addition, P3s could be used to expand the state’s broadband services.