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Session is Sought to Cut Gas Tax: 6 Legislators, 5 of Them Dems, Write to Easley but Are Resisted

Posted on: Saturday, 24 December 2005, 12:00 CST

By Sharif Durhams, The Charlotte Observer, N.C., The Charlotte Observer, N.C.

Dec. 24--RALEIGH -- Six state legislators, including five Democrats, want the state to hold a special legislative session next week to reduce a planned hike in the state's gas tax.

But the request did not sway Gov. Mike Easley or House Speaker Jim Black, D-Mecklenburg, who have resisted such a move, according to staffers.

Republicans called for a gas-tax cut months ago, citing higher fuel prices in the wake of Hurricane Katrina. A letter released Friday that House members sent to Easley this week signifies the first outcry from Democrats, who lead the House, Senate and the governor's office.

"This year, North Carolina families are getting hit with the highest fuel costs in recent memory," the letter says. "As elected leaders, we need to give some serious consideration to freezing the gas tax at its current rate."

The proposed tax freeze would be temporary. The idea is to stop a planned increase in the state's 27.1 cent-per-gallon gas tax, which is adjusted every six months. It increases when the cost of gas increases.

The gas tax is scheduled to jump 2.8 cents per gallon Jan. 1 -- the biggest one-time jump in nearly 20 years.

The six lawmakers, all from mountain counties, also called for a tax cut on home heating fuel. The state has approved rate hikes that could drive up natural gas bills 50 percent this winter.

"Heck, I get my own bill and I know how high it is. I think, 'What about people on fixed incomes?' " said Rep. Phil Haire, D-Jackson, who signed the letter. "It gets cold out there in the state, but it gets colder up here."

The letter was also signed by Reps. Wilma Sherrill, R-Buncombe; Ray Rapp, D-Madison; Jim Harrell, D-Surry; Bob England, D-Rutherford; and Bruce Goforth, D-Buncombe.

The governor's office has said any gas tax cut would harm roads. Lawmakers designed the tax to increase as the cost of gas increases, under the theory that drivers would buy less gas at higher prices, but road-building needs would remain the same.

"Capping the tax would save the average consumer $15 a year, but it would throw the highway budget out of balance $135 million, violating the state constitution and delaying highway projects," Easley spokeswoman Jill Lucas said.

Easley and utility companies announced a $9.9 million fund last month to help low-income families pay heating bills and insulate their homes this winter. But the mountain lawmakers say that's not enough.

To change the law in a special session, either Easley has to call lawmakers back to town or the lawmakers have to call themselves, a move that would likely require the support of Black and Senate President Pro Tem Marc Basnight, D-Dare.

Two months ago, Black said those pushing for tax cuts should not have "knee-jerk" reactions to higher gas prices. On Friday, Black's communications director, Julie Robinson, said the speaker would talk to Easley to see if there are other ways to reduce the burden on consumers without cutting revenues.

Among other Mecklenburg House members, Republicans Ed McMahan, Jim Gulley and John Rhodes said Friday they would vote for a cut in both taxes. Democrats Becky Carney, Martha Alexander and Pete Cunningham said they would consider it.

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Copyright (c) 2005, The Charlotte Observer, N.C.

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Source: The Charlotte Observer (Charlotte, N.C.)

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