North Carolina 2025-2026 Regular Session

North Carolina House Bill H837

Introduced
4/8/25  

Caption

Study Alternative Methods for Highway Funding

Impact

The implications of H837 are significant as it proposes a shift from traditional funding mechanisms. Among the alternatives to be studied are the implementation of you vehicle miles traveled (VMT) fee based on odometer readings and a flat fee reflecting average annual mileage for electric and hybrid vehicles. Furthermore, the bill proposes a new 'Access User Fee' for non-diesel registered vehicles, seeking a replacement for current gas taxes and fees for electric vehicles. This shift is crucial as it recognizes the evolving landscape of vehicle types and the potential revenue loss from conventional gas taxes.

Summary

House Bill 837, titled 'Study Alternative Methods for Highway Funding,' seeks to address the growing need for alternative sources of funding for highway construction and maintenance in North Carolina. The bill directs the Legislative Services Officer (LSO), in collaboration with the Joint Legislative Transportation Oversight Committee (JLTOC), to engage a consultant to study potential alternatives to the current highway funding system, which primarily depends on gas taxes. Given the increase in electric and hybrid vehicle registrations, the bill emphasizes the necessity for equitable contributions towards highway maintenance from all vehicle types.

Sentiment

The sentiment surrounding H837 appears supportive among proponents who argue it is necessary to adapt to changes in vehicle usage and funding strategies. They anticipate that a thorough study can produce viable recommendations to secure future highway funding. However, some stakeholders may express concerns regarding potential increased costs for vehicle owners and the logistics of implementing new fees, highlighting the need for a balanced approach to highway funding that remains fair to all users.

Contention

Notable points of contention may arise around the methods of collecting fees and the fairness of these alternatives, especially for lower-income drivers who may be disproportionately affected by new fees. The efficacy of a VMT fee structure is also a topic of discussion, as it will require robust tracking mechanisms. Stakeholders will likely debate the implications of shifting away from gas taxes entirely, questioning whether it would lead to adequate funding levels for highway upkeep and future infrastructure improvements.

Companion Bills

No companion bills found.

Similar Bills

No similar bills found.