Wednesday, September 18, 2013

Important Changes to Vehicle Property Taxes in North Carolina

There are two truths in life right?  One of them is certainly taxes.  And the thing that stays the same about taxes is that they are constantly changing.  The latest change that effects us here in North Carolina is how property taxes are paid on vehicles.  According to :

"The North Carolina General Assembly passed House Bill 1779, creating what we call the Tag and Tax Together program – a more streamlined method for vehicle owners to pay their registration and vehicle taxes. Beginning in 2013, annual registration fees and vehicle property taxes will be paid to the Division of Motor Vehicles. In turn, the DMV will distribute the taxes to the appropriate counties."

So what affect do these changes have on me when I buy a vehicle, you ask?  Excellent question.  From now on, when you purchase a vehicle in, and live in North Carolina, not only are the sales tax and highway use taxes due, but also your property tax on that vehicle.  The way this works according to the “Tag & Tax Together” Dealer Information is :

"beginning 9/1/13, vehicle property taxes are due at the time the title work is done, but payment may be delayed if the dealer chooses not to collect property tax. If payment of vehicle property tax is delayed, the owner will receive a Limited Registration Plate (LRP), issued by dealers using online titling systems, or the license plate agency, with a “T” (for temporary) sticker. The “T” sticker will expire no earlier than 60 days after the vehicle is titled. When the LRP is delivered to the owner, a Limited Registration and Property Tax Notice stating the amount of the vehicle property taxes due will also be provided by the dealer or the license plate agency."

Also, either you or the dealer can choose to delay your payment of the property tax according to the "Tag & Tax Together" program instructions.

I suppose we will all have to wait and see how these changes really affect us in the long run.  What are your thoughts on these changes?

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