- Associated Press - Thursday, March 5, 2015

RALEIGH, N.C. (AP) - The road construction proposal offered by North Carolina Gov. Pat McCrory is based on the gasoline tax falling by an amount less than projected using the current formula.

McCrory unveiled in his state budget Thursday how he’d spend money from the Highway Fund and Highway Trust Fund, which get more than half of their proceeds from the gas tax.

The plans are based on the tax falling from 37.5 cents per gallon to 35 cents. That’s in line with a bill the Senate passed last month. The current law, however, would likely bring the rate below 30 cents July 1.

Some lawmakers have called that difference a tax increase. State Budget Director Lee Roberts disagrees, saying decreasing the rate less than what would otherwise occur is not a tax hike.



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