NC gas tax could rise if bill passes

RALEIGH, N.C. (AP) - North Carolina's gasoline tax could go up under a bill moving its way through the Senate.

The Senate voted 34-12 Thursday to require that the motor fuels tax be no less than the current rate of 29.9 cents per gallon through mid-2011.

The tax historically has been readjusted twice a year based on the wholesale price of gasoline. The Legislature agreed in 2006 to cap the rate at no more than 29.9 cents following high gas prices after Hurricane Katrina.

Bill sponsor Sen. Clark Jenkins of Edgecombe County said creating a floor for the tax will provide more road-building funds. The change could generate an additional $67.5 million because the tax may be higher than it's been under the cap.

A final Senate vote could come next week.