For purposes of the state income tax in North Carolina, the
Highway Use Tax does not appear to be deductible, although it is on the federal
return.
The North
Carolina Department of Revenue states the following:
"North Carolina itemized deductions are not identical to
federal itemized deductions and are not subject to certain limitations.
Specifically, no itemized deductions included on federal Form 1040, Schedule A
are allowed as North Carolina itemized deductions except qualified home
mortgage interest, real estate property taxes, charitable contributions,
medical and dental expenses, and repayment of claim of right income. "
Given that the Highway Use Tax is in lieu of a sales tax, it is
not deductible in North Carolina.
[Edited 01.17.2018|3:53 PM CST]
