Stop Diverting Transportation Funds

Currently, in North Carolina, existing sales tax revenues directly related to the use of the state’s highway infrastructure are diverted to the General Fund instead of going to help maintain and improve our roads and bridges.

We encourage legislators to ensure transportation-related funds go to address our transportation needs.

Specifically, sales tax revenues from purchases at an auto part store or a repair to your car generated $470 million in 2020. Still, the money went to the “General Fund” instead of helping pay for transportation infrastructure.

Meanwhile, in Minnesota, where a similar situation is occurring, state legislators are taking action to remedy the situation.

Three Republican senators announced two similar proposals Tuesday to shift all auto parts sales taxes from the general fund to the Highway User Tax Distribution Fund (HUTDF).

The tax would apply to all auto parts, including tires, rims, fluid, and windshield wiper blades.

Share This Article.