GENERAL ASSEMBLY OF NORTH CAROLINA
SESSION 2001
H	2
HOUSE BILL 69
 Committee Substitute Favorable 3/28/01

Short Title:	Repeal Highway Use Tax Transfer--3 Yrs.	()	
Sponsors:	     	
Referred to:	     	
February 7, 2001

A BILL TO BE ENTITLED
AN ACT to repeal, with a three-year phaseout, the annual transfer of one hundred seventy million dollars in highway use tax collections from the highway trust fund to the general fund and to provide that those funds shall be used by the department of transportation for highway maintenancE.

The General Assembly of North Carolina enacts:
SECTION 1.  G.S. 105‑187.9 reads as rewritten:
"§ 105‑187.9.  Disposition of tax proceeds.
(a)	Taxes collected under this Article at the rate of eight percent (8%) shall be credited to the General Fund. Taxes collected under this Article at the rate of three percent (3%) shall be credited to the North Carolina Highway Trust Fund. 
(b)	Subject to the availability of revenue, the State Treasurer shall transfer the following sums of the taxes deposited in the Trust Fund, pursuant to subsection (a) of this section, to the General Fund:
(1)	On July 1, 2003 – one hundred twenty‑seven million five hundred thousand dollars ($127,500,000).
(2)	On July 1, 2004 – eighty‑five million dollars ($85,000,000).
(3)	On July 1, 2005 – forty‑two million five hundred thousand dollars ($42,500,000).
(4)	On July 1, 2006, and on July 1 or each year thereafter, no funds shall be transferred."
SECTION 2.  G.S. 136‑176 is amended by adding a new subsection to read:
"(e)	The Department of Transportation shall use the following funds deposited in the Trust Fund pursuant to subdivision (a)(2) of this section (in addition to any other funds appropriated for this purpose) for highway maintenance:
(1)	For the 2003‑2004 fiscal year – forty‑two million five hundred thousand dollars ($42,500,000).
(2)	For the 2004‑2005 fiscal year – eighty-five million dollars ($85,000,000).
(3)	For the 2005‑2006 fiscal year – one hundred twenty‑seven million five hundred thousand dollars ($127,500,000).
(4)	For the 2006‑2007 and all subsequent fiscal years – one hundred seventy million dollars ($170,000,000)."
SECTION 3.  This act becomes effective July 1, 2003.