Article 22A

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Motor Vehicles.

Contents

105‑330. (See Editor's notes) Definitions.

The following definitions apply in this Article:

  • 1. Classified motor vehicle. – A motor vehicle classified under this Article.
  • 1a. (Effective July 1, 2011 – see notes) Collecting authority. – The Division of Motor Vehicles or an agent contracting with the Division of Motor Vehicles.
  • 2. Motor vehicle. – Defined in G.S. 20‑4.01(23).
  • 2a. (Effective July 1, 2011 – see notes) Municipal corporation. – Defined in G.S. 105‑273(11).
  • 3. Public service company. – Defined in G.S. 105‑333(14).
  • 4. (Effective July 1, 2013 – see notes) Registered classified motor vehicle. – Any of the following:
a. A classified motor vehicle that has a registration plate issued under Article 3 of Chapter 20 of the General Statutes and whose registration is current.
b. A classified motor vehicle transferred to an owner who has applied for a registration plate for the motor vehicle.
  • 5. (Effective July 1, 2013 – see notes) Registration fees. – Fees set out in G.S. 20‑87 and G.S. 20‑88.
  • 6. (Effective July 1, 2013 – see notes) Unregistered classified motor vehicle. – A classified motor vehicle that is not a registered classified motor vehicle. (1991, c. 624, s. 1; 2005‑294, s. 1; 2006‑259, s. 31.5; 2007‑527, s. 22(b); 2008‑134, s. 65; 2009‑445, s. 24(a); 2010‑95, s. 22(c).)

105‑330.1. (Effective until July 1, 2013) Classification of motor vehicles.

  • a. Classification. – All motor vehicles other than the motor vehicles listed in subsection (b) of this section are designated a special class of property under authority of Article V, Sec. 2(2) of the North Carolina Constitution. Classified motor vehicles shall be listed and assessed as provided in this Article and taxes on classified motor vehicles shall be collected as provided in this Article.
  • b. Exceptions. – The following motor vehicles are not classified under subsection (a) of this section:
  1. Motor vehicles exempt from registration pursuant to G.S. 20‑51.
  2. Manufactured homes, mobile classrooms, and mobile offices.
  3. Semitrailers or trailers registered on a multiyear basis.
  4. Motor vehicles owned or leased by a public service company and appraised under G.S. 105‑335.
  5. Repealed by Session Laws 2000, c. 140, s. 75(a), effective July 1, 2000. (1991, c. 624, s. 1; 1991 (Reg. Sess., 1992), c. 961, s. 3; 1993, c. 485, s. 18; c. 543, s. 4; 1993 (Reg. Sess., 1994), c. 745, s. 1; 2000‑140, s. 75(a).)

105‑330.1. (Effective July 1, 2013 – See Editor's note) Classification of motor vehicles.

  • a. Classification. – All motor vehicles other than the motor vehicles listed in subsection (b) of this section are designated a special class of property under Article V, Sec. 2(2) of the North Carolina Constitution and are considered classified motor vehicles. Classified motor vehicles must be listed and assessed as provided in this Article and taxes on classified motor vehicles must be collected as provided in this Article.
  • b. Exceptions. – The following motor vehicles are not classified under subsection (a) of this section:
  1. Motor vehicles exempt from registration pursuant to G.S. 20‑51.
  2. Manufactured homes, mobile classrooms, and mobile offices.
  3. Semitrailers or trailers registered on a multiyear basis.
  4. Motor vehicles owned or leased by a public service company and appraised under G.S. 105‑335.
  5. Repealed by Session Laws 2000, c. 140, s. 75(a), effective July 1, 2000.
  6. Motor vehicles registered under the International Registration Plan.
  7. Motor vehicles issued permanent registration plates under G.S. 20‑84.
  8. Self‑propelled property‑carrying vehicles issued three‑month registration plates at the farmer rate under G.S. 20‑88. (1991, c. 624, s. 1; 1991 (Reg. Sess., 1992), c. 961, s. 3; 1993, c. 485, s. 18; c. 543, s. 4; 1993 (Reg. Sess., 1994), c. 745, s. 1; 2000‑140, s. 75(a); 2007‑471, s. 6; 2009‑445, ss. 24(a), 25(a); 2010‑95, s. 22(c), (d).)

105‑330.2. (Effective until July 1, 2013) Appraisal, ownership, and situs.

  • a. Date Determined. – The value of a classified motor vehicle listed pursuant to G.S. 105‑330.3(a)(1) (registered vehicles) shall be determined as of January 1 of the year the taxes are due. If the value of a new motor vehicle cannot be determined as of that date, the value of that vehicle shall be determined for that year as of the date that model vehicle is first offered for sale at retail in this State.
    The ownership, situs, and taxability of a classified motor vehicle listed pursuant to G.S. 105‑330.3(a)(1) (registered vehicles) shall be determined annually as of the day on which a new registration is applied for or the day on which the current vehicle registration is renewed, regardless of whether the registration is renewed after it has expired.
    The value of a classified motor vehicle listed pursuant to G.S. 105‑330.3(a)(2) (unregistered vehicles) shall be determined as of January 1 of the year in which the motor vehicle is required to be listed pursuant to G.S. 105‑330.3(a)(2). The ownership, situs, and taxability of a classified motor vehicle listed or discovered pursuant to G.S. 105‑330.3(a)(2) (unregistered vehicles) shall be determined as of January 1 of the year in which the motor vehicle is required to be listed.
  • b. (Effective until July 1, 2011 – see notes) Value; Appeal. – A classified motor vehicle shall be appraised by the assessor at its true value in money as prescribed by G.S. 105‑283. If the assessor considers the sales price of the motor vehicle in determining the true value of the motor vehicle, the assessor must not include any amount for which the taxpayer is liable under Article 5A of this Chapter. The owner of a classified motor vehicle may appeal the appraised value of the vehicle in the manner provided by G.S. 105‑312(d) for appeals in the case of discovered property and may appeal the situs or taxability of the vehicle in the manner provided by G.S. 105‑381. The owner of a classified motor vehicle must file an appeal of appraised value with the assessor within 30 days after the date of the tax notice prepared pursuant to G.S. 105‑330.5. Notwithstanding G.S. 105‑312(d), an owner who appeals the appraised value of a classified motor vehicle shall pay the tax on the vehicle when due, subject to a full or partial refund if the appeal is decided in the owner's favor.
  • b. (Effective July 1, 2011 until July 1, 2013 – see notes) Value; Appeal. – A classified motor vehicle shall be appraised by the assessor at its true value in money as prescribed by G.S. 105‑283. The Property Tax Division of the Department of Revenue shall annually adopt a schedule of values, standards, and rules to be used in the valuation of motor vehicles to ensure equitable statewide valuations, taking into account local market conditions and allowing adjustments for mileage and the condition of the vehicles. If the assessor considers the sales price of the motor vehicle in determining the true value of the motor vehicle, the assessor must not include any amount for which the taxpayer is liable under Article 5A of this Chapter. The owner of a classified motor vehicle may appeal the appraised value of the vehicle in the manner provided by G.S. 105‑312(d) for appeals in the case of discovered property and may appeal the situs or taxability of the vehicle in the manner provided by G.S. 105‑381. The owner of a classified motor vehicle must file an appeal of appraised value with the assessor before the taxes become delinquent pursuant to G.S. 105‑330.4. Notwithstanding G.S. 105‑312(d), an owner who appeals the appraised value of a classified motor vehicle shall pay the tax on the vehicle when due, subject to a full or partial refund if the appeal is decided in the owner's favor.
  • c. Repealed by Session Laws 2008‑134, s. 61, effective July 28, 2008. (1991, c. 624, s. 1; 1991 (Reg. Sess., 1992), c. 961, s. 4; 1995, c. 510, s. 1; 1995 (Reg. Sess., 1996), c. 646, s. 24; 1997‑6, s. 10; 1999‑353, s. 1; 2005‑294, s. 2; 2005‑303, s. 1; 2006‑259, s. 31.5; 2007‑527, s. 22(b); 2008‑134, ss. 61, 65.)

105‑330.2. (Effective July 1, 2013 – See Editor's note) Appraisal, ownership, and situs.

  • a. Determination Date for Registered Vehicle. – The ownership, situs, and taxability of a registered classified motor vehicle is determined annually as of the date on which the vehicle's current registration is renewed, regardless of whether the registration is renewed after it has expired, or on the date an application for a new registration is submitted. The situs of a registered classified motor vehicle may not be changed until the next registration date. The value of a registered classified motor vehicle is determined as follows:
  1. For a registration expiring or an application for a new registration during the period January 1 through August 31, the value is determined as of January 1 of the current year.
  2. For a registration expiring or an application for a new registration during the period September 1 through December 31, the value is determined as of January 1 of the following year.
  3. For a new motor vehicle whose value cannot be determined as of January 1 of the year specified in subdivision (1) or (2) of this subsection, the value is determined as of the date that model of motor vehicle is first offered for sale at retail in this State.
  4. For a motor vehicle whose value cannot be determined as of the date set under any other subdivision in this subsection, the value is determined using the most currently available January 1 retail value of the vehicle.
  • a1. Determination Date for Unregistered Vehicle. – The ownership, situs, and taxability of an unregistered classified motor vehicle is determined as of January 1 of the year in which the registration of the motor vehicle expires and is not renewed or the motor vehicle is acquired and the owner does not submit an application for registration. The value of an unregistered classified motor vehicle is determined as of January 1 of the year the vehicle is required to be listed.
  • b. Value. – An assessor must appraise a classified motor vehicle at its true value in money as prescribed by G.S. 105‑283. The sales price of a classified motor vehicle purchased from a dealer, including all accessories attached to the vehicle when it is delivered to the purchaser, is considered the true value of the vehicle, and the assessor must appraise the vehicle at this value. The sales price excludes the tax imposed under Article 5A of this Chapter. The Property Tax Division of the Department of Revenue must annually adopt a schedule of values, standards, and rules to be used in the valuation of all other classified motor vehicles to ensure equitable statewide valuations, taking into account local market conditions and allowing adjustments for mileage and the condition of the vehicles.
  • b1. Appeal. – The owner of a classified motor vehicle may appeal the appraised value or taxability of the vehicle by filing a request for appeal with the assessor within 30 days of the date taxes are due on the vehicle under G.S. 105‑330.4. An owner who appeals the appraised value or taxability of a classified motor vehicle must pay the tax on the vehicle when due, subject to a full or partial refund if the appeal is decided in the owner's favor.
    The combined tax and registration notice or tax receipt for a classified motor vehicle must explain the right to appeal the appraised value and taxability of the vehicle. A lessee of a vehicle that is required by the terms of the lease to pay the tax on the vehicle is considered the owner of the vehicle for purposes of filing an appeal under this subsection.
  • c. Repealed by Session Laws 2008‑134, s. 61, effective July 28, 2008. (1991, c. 624, s. 1; 1991 (Reg. Sess., 1992), c. 961, s. 4; 1995, c. 510, s. 1; 1995 (Reg. Sess., 1996), c. 646, s. 24; 1997‑6, s. 10; 1999‑353, s. 1; 2005‑294, s. 2; 2005‑303, s. 1; 2006‑259, s. 31.5; 2007‑527, s. 22(b); 2008‑134, ss. 61, 65; 2009‑445, s. 24(a); 2010‑95, s. 22(c).)

105‑330.3. (Effective until July 1, 2013 – See Editor's note) Assessor's duty to list classified motor vehicles; application for exempt status.

  • a.
  1. Registered Vehicles. The assessor shall list, appraise, and assess all taxable classified motor vehicles for county, municipal, and special district taxes each year in the name of the record owner as of the day on which the current vehicle registration is renewed or the day on which a new registration is applied for. The owner of a classified motor vehicle listed pursuant to this subdivision need not list the vehicle as provided in G.S. 105‑306; G.S. 105‑312 does not apply to classified motor vehicles listed pursuant to this subdivision.
  2. Unregistered Vehicles. The owner of a classified motor vehicle who does not register the vehicle or does not renew the registration of the vehicle on or before the expiration date of the current registration shall list the vehicle for taxes by filing an abstract with the assessor of the county in which the vehicle is located on or before January 31 following the date the unregistered vehicle is acquired or, in the case of a registration that is not renewed, January 31 following the date the registration expires, and on or before January 31 of each succeeding year that the vehicle is unregistered. If a classified motor vehicle listed pursuant to this section is registered during the calendar year in which it was listed, it shall be taxed for the fiscal year that opens in the calendar year of listing as an unregistered vehicle. A vehicle required to be listed pursuant to this subdivision that is not listed by January 31 shall be subject to discovery pursuant to G.S. 105‑312, unless the vehicle has been taxed as a registered vehicle for the current year.
  • b. The owner of a classified motor vehicle who claims an exemption or exclusion from tax under this Subchapter has the burden of establishing that the vehicle is entitled to the exemption or exclusion. The owner may establish prima facie entitlement to exemption or exclusion of the classified motor vehicle by filing an application for exempt status with the assessor. When an approved application is on file, the assessor shall omit from the tax records classified motor vehicles described in the application. An application is not required for vehicles qualifying for exemptions or exclusions listed in G.S. 105‑282.1(a)(1).
  • c. The owner of a classified motor vehicle that has been omitted from the tax records as provided in subsection (b) shall report to the assessor any classified motor vehicle registered in the owner's name or owned by him that does not qualify for exemption or exclusion for the current year. This report shall be made within 30 days after the renewal of registration or initial registration of the vehicle or, for an unregistered vehicle, on or before January 31 of the year in which the vehicle is required to be listed by subdivision (a)(2). A classified motor vehicle that does not qualify for exemption or exclusion but has been omitted from the tax records as provided in subsection (b) is subject to discovery under the provisions of G.S. 105‑312, except that in lieu of the penalties prescribed by G.S. 105‑312(h) there shall be assessed a penalty of one hundred dollars ($100.00) for each registration period that elapsed before the disqualification was discovered.
  • d. The provisions of G.S. 105‑282.1 do not apply to classified motor vehicles. (1991, c. 624, s. 1; 2008‑134, s.

105‑330.3. (Effective July 1, 2013 – See Editor's note) Listing requirements for classified motor vehicles; application for exempt status.

  • a. Registered Vehicles. – The assessor must list a registered classified motor vehicle each year for each taxing unit in the name of the record owner as of the day on which the current vehicle registration is renewed or the day on which an owner to whom the vehicle is transferred applies for a new registration. The owner of a classified motor vehicle listed pursuant to this subsection need not list the vehicle as provided in G.S. 105‑306. G.S. 105‑312 does not apply to a classified motor vehicle listed pursuant to this subsection.
  • a1. Unregistered Vehicles. – The owner of an unregistered classified motor vehicle must list the vehicle for taxes by filing an abstract with the assessor of the county in which the vehicle is located on or before January 31 following the date the owner acquired the unregistered vehicle or, in the case of a registration that is not renewed, January 31 following the date the registration expires, and on or before January 31 of each succeeding year that the vehicle is unregistered. If a classified motor vehicle listed pursuant to this subsection is registered during the calendar year in which it was listed, the vehicle is taxed for the fiscal year that opens in the calendar year of listing as an unregistered vehicle. A vehicle required to be listed pursuant to this subsection that is not listed by January 31 is subject to discovery pursuant to G.S. 105‑312, unless the vehicle has been taxed as a registered vehicle for the current year.
  • b. Exemption or Exclusion. – The owner of a classified motor vehicle who claims an exemption or exclusion from tax under this Subchapter has the burden of establishing that the vehicle is entitled to the exemption or exclusion. The owner may establish prima facie entitlement to exemption or exclusion of the classified motor vehicle by filing an application for exempt status with the assessor. When an approved application is on file, the assessor must omit from the tax records the classified motor vehicles described in the application. An application is not required for vehicles qualifying for the exemptions or exclusions listed in G.S. 105‑282.1(a)(1). The remaining provisions of G.S. 105‑282.1 do not apply to classified motor vehicles.
  • c. Duty to report changes. – The owner of a classified motor vehicle that has been omitted from the tax records as provided in subsection (b) of this section must report to the assessor any classified motor vehicle registered in the owner's name or owned by that person but not registered in the person's name that does not qualify for exemption or exclusion for the current year. This report must be made within 30 days after the renewal of registration or initial registration of the vehicle or, for an unregistered vehicle, on or before January 31 of the year in which the vehicle is required to be listed by subsection (a1) of this section. A classified motor vehicle that does not qualify for exemption or exclusion but has been omitted from the tax records as provided in subsection (b) is subject to discovery under the provisions of G.S. 105‑312, except that in lieu of the penalties prescribed by G.S. 105‑312(h) a penalty of one hundred dollars ($100.00) is assessed for each registration period that elapsed before the disqualification was discovered.
  • d. Criminal Sanction. – A person who willfully attempts, or who willfully aids or abets another person to attempt, in any manner to evade or defeat the taxes subject to this Article, whether by removal or concealment of property or otherwise, is guilty of a Class 2 misdemeanor. (1991, c. 624, s. 1; 2008‑134, s. 62; 2009‑445, s. 24(a); 2010‑95, s. 22(c).)

105‑330.4. (Effective until July 1, 2013 – See Editor's notes) Due date, interest, and enforcement remedies.

  • a. Taxes on a classified motor vehicle listed pursuant to G.S. 105‑330.3(a)(2) are due on September 1 following the date by which the vehicle was required to be listed. Taxes on a classified motor vehicle listed pursuant to G.S. 105‑330.3(a)(1) are due each year on the date a new registration is applied for or the fifteenth day of the month following the month in which the registration renewal sticker expired pursuant to G.S. 20‑66(g).
  • b. Subject to the provisions of G.S. 105‑395.1, interest on unpaid taxes and registration fees on classified motor vehicles listed pursuant to G.S. 105‑330.3(a)(1) accrues at the rate of five percent (5%) for the remainder of the month following the month in which the registration renewal sticker expired pursuant to G.S. 20‑66(g). Interest accrues at the rate of three‑fourths percent (3/4%) for each month thereafter until the taxes and fees are paid, unless the notice required by G.S. 105‑330.5 is prepared after the date the taxes and fees are due. In that circumstance, the interest accrues beginning the second month following the date of the notice until the taxes and fees are paid. Subject to the provisions of G.S. 105‑395.1, interest on delinquent taxes on classified motor vehicles listed pursuant to G.S. 105‑330.3(a)(2) accrues as provided in G.S. 105‑360(a) and discounts shall be allowed as provided in G.S. 105‑360(c).
  • c. Unpaid taxes on classified motor vehicles may be collected by levying on the motor vehicle taxed or on any other personal property of the taxpayer pursuant to G.S. 105‑366 and G.S. 105‑367, or by garnishment of the taxpayer's property pursuant to G.S. 105‑368. Notwithstanding the provisions of G.S. 105‑366(b), the enforcement measures of levy, attachment, and garnishment may be used to collect unpaid taxes on classified motor vehicles listed pursuant to G.S. 105‑330.3(a)(1) at any time after interest accrues. Notwithstanding the provisions of G.S. 105‑355, taxes on classified motor vehicles listed pursuant to G.S. 105‑330.3(a)(1) do not become a lien on real property owned by the taxpayer.
  • d. Tax payments submitted by mail are deemed to be received as of the date shown on the postmark affixed by the United States Postal Service. If no date is shown on the postmark or if the postmark is not affixed by the United States Postal Service, the tax payment is deemed to be received when the payment is received in the office of the tax collector. In any dispute arising under this subsection, the burden of proof is on the taxpayer to show that the payment was timely made. (1991, c. 624, s. 1; 1991 (Reg. Sess., 1992), c. 961, s. 5; 1995, c. 510, s. 2; 2001‑139, s. 8; 2005‑294, ss. 3, 4, 5; 2006‑259, s. 31.5; 2007‑527, s. 22(b); 2008‑134, s. 65; 2011‑330, ss. 40, 42(a).)

105‑330.4. (Effective July 1, 2013 – See Editor's note) Due date, interest, and enforcement remedies.

  • a. Due Date. – The registration of a classified motor vehicle may not be renewed unless the taxes that are due have been paid. Taxes on a classified motor vehicle are due as
  1. For an unregistered classified motor vehicle, the taxes are due on September 1 following the date by which the vehicle was required to be listed.
  2. For a registered classified motor vehicle that is registered under the staggered system, the taxes are due each year on the date the owner applies for a new registration or the fifteenth day of the month following the month in which the registration renewal sticker expires pursuant to G.S. 20‑66(g).
  3. For a registered classified motor vehicle that is registered under the annual system, taxes are due on the date the owner applies for a new registration or 45 days after the registration expires.
  4. For a registered classified motor vehicle that has a temporary registration plate issued under G.S. 20‑79.1 or a limited registration plate issued under G.S. 20‑79.1A, the taxes are due on the last day of the second month following the date the owner applied for the plate.
  • a1. Repealed by Session Laws 2009‑445, s. 24(a), effective July 1, 2013, and applicable to combined tax and registration notices issued on or after that date, or when the Division of Motor Vehicles and the Department of Revenue certify that the integrated computer system or registration renewal and property tax collection for motor vehicles is in operation, whichever occurs first.
  • b. Interest. – Interest accrues on unpaid taxes and unpaid registration fees for registered classified motor vehicles at the rate of five percent (5%) for the remainder of the month following the month the taxes are due under subsection (a) of this section. Interest accrues at the rate of three‑fourths percent (3/4%) for each following month until the taxes and fees are paid, unless the notice required by G.S. 105‑330.5 is prepared after the date the taxes and fees are due. In that circumstance, the interest accrues beginning the second month following the date of the notice until the taxes and fees are paid. Subject to the provisions of G.S. 105‑395.1, interest accrues on delinquent taxes on unregistered classified motor vehicles as provided in G.S. 105‑360(a) and the discounts allowed in G.S. 105‑360(a) apply to the payment of the taxes.
  • c. Remedies. – The enforcement remedies in this Subchapter apply to unpaid taxes on an unregistered classified motor vehicle. The enforcement remedies in this Subchapter do not apply to unpaid taxes on a registered classified motor vehicle.
  • d. Tax payments submitted by mail are deemed to be received as of the date shown on the postmark affixed by the United States Postal Service. If no date is shown on the postmark or if the postmark is not affixed by the United States Postal Service, the tax payment is deemed to be received when the payment is received in the office of the tax collector. In any dispute arising under this subsection, the burden of proof is on the taxpayer to show that the payment was timely made. (1991, c. 624, s. 1; 1991 (Reg. Sess., 1992), c. 961, s. 5; 1995, c. 510, s. 2; 2001‑139, s. 8; 2005‑294, ss. 3, 4, 5; 2006‑259, s. 31.5; 2007‑471, s. 3; 2007‑527, s. 22(b); 2008‑134, s. 65; 2009‑445, ss. 24(a), 25(a); 2010‑95, s. 22(c), (d); 2011‑330, ss. 40, 42(a).)

105‑330.5. (Effective until July 1, 2013 – See Editor's note) Notice required; distribution and collection fees.

  • a. (Effective until July 1, 2011 – see note) For classified motor vehicles listed pursuant to G.S. 105‑330.3(a)(1), upon receiving the registration lists from the Division of Motor Vehicles each month, the assessor shall prepare a tax notice for each vehicle; the tax notice shall contain all county, municipal, and special district taxes due on the motor vehicle. In computing the taxes, the assessor shall appraise the motor vehicle in accordance with G.S. 105‑330.2 and shall use the tax rates of the various taxing units in effect on the first day of the month in which the current vehicle registration expired or the new registration was applied for. The tax on the motor vehicle is the product of a fraction and the number of months in the motor vehicle tax year. The numerator of the fraction is the product of the appraised value of the motor vehicle and the tax rate of the various taxing units. The denominator of the fraction is 12. This procedure shall constitute the listing and assessment of each classified motor vehicle for taxation. The tax notice shall contain:
  1. The date of the tax notice.
  2. The appraised value of the motor vehicle.
  3. The tax rate of the taxing units.
  4. A statement that the appraised value of the motor vehicle may be appealed to the assessor within 30 days after the date of the notice.
  • a. (Effective July 1, 2011 until July 1, 2013 – see note) For classified motor vehicles listed pursuant to G.S. 105‑330.3(a)(1), upon receiving the registration lists from the Division of Motor Vehicles each month, the Property Tax Division of the Department of Revenue shall prepare a combined tax and registration notice for each vehicle. The combined tax and registration notice shall contain all county and municipal corporation taxes and fees due on the motor vehicle as computed by the assessor in the county of registration. In computing the taxes, the assessor shall appraise the motor vehicle in accordance with G.S. 105‑330.2 and shall use the tax rates of the various taxing units in effect on the first day of the month in which the current vehicle registration expires or the new registration is applied for. The tax on the motor vehicle is the product of a fraction and the number of months in the motor vehicle tax year. The numerator of the fraction is the product of the appraised value of the motor vehicle and the tax rate of the various taxing units. The denominator of the fraction is 12. This procedure shall constitute the listing and assessment of each classified motor vehicle for taxation. The combined tax and registration notice shall contain:
  1. The date of the combined tax and registration notice.
  2. The appraised value of the motor vehicle.
  3. The tax rate of the taxing units.
  4. A statement that the appraised value of the motor vehicle may be appealed to the assessor before the taxes and fees become delinquent.
  5. The registration fee imposed by the Division of Motor Vehicles and any other information required by the Division of Motor Vehicles to comply with the provisions of Chapter 20 of the General Statutes.
  • a1. (Effective until July 1, 2011 – see note) When a new registration is obtained for a vehicle registered under the annual system in a month other than December, the assessor shall prorate the taxes due for the remainder of the calendar year. The amount of prorated taxes due is the product of the proration fraction and the taxes computed according to subsection (a). The numerator of the proration fraction is the number of full months remaining in the calendar year following the date the registration is applied for and the denominator of the fraction is 12.
  • a1. (Effective July 1, 2011 until July 1, 2013 – see note) When a new registration is obtained for a vehicle registered under the annual system in a month other than December, the taxes shall be prorated for the remainder of the calendar year. The amount of prorated taxes due is the product of the proration fraction and the taxes computed according to subsection (a). The numerator of the proration fraction is the number of full months remaining in the calendar year following the date the registration is applied for and the denominator of the fraction is 12.
  • b. (Effective until July 1, 2011 – see note) When the tax notice required by subsection (a) is prepared, the county tax collector shall mail a copy of the notice, with appropriate instructions for payment, to the motor vehicle owner. The county may retain the actual cost of collecting municipal and special district taxes collected pursuant to this Article, not to exceed one and one‑half percent (1 ½%) of the amount of taxes collected. The county finance officer shall establish procedures to ensure that tax payments received pursuant to this Article are properly accounted for and taxes due other taxing units are remitted to the units to which they are due at least once each month. Each month, a county shall provide reasonable information to the municipalities and special districts located in it to enable them to account for the tax payments remitted to them.
  • b. (Effective July 1, 2011 until July 1, 2013 – see note) When the combined tax and registration notice required by subsection (a) is prepared, the Property Tax Division of the Department of Revenue or a third‑party contractor shall mail a copy of the notice, with appropriate instructions for payment, to the motor vehicle owner. The Department shall establish a fee equal to the actual cost of printing and sending the notice. The Department may receive a fee for each notice generated for a vehicle registered in a county or municipal corporation from the taxes and fees remitted to the county or municipal corporation in which the vehicle is registered. The collecting authority is responsible for collecting county and municipal taxes and fees assessed under this Article and may retain a fee for collecting these taxes and fees. The fee retained by the collecting authority shall be an amount equal to at least one‑third of the compensation paid for registration renewals conducted by contract agents under G.S. 20‑63(h). The Property Tax Division shall establish procedures to ensure that tax payments and fees received pursuant to this Article and Chapter 20 of the General Statutes are properly accounted for and taxes and fees due other taxing units and the Division of Motor Vehicles are remitted at least once each month. Each collecting authority shall provide a weekly financial report containing information required by the Property Tax Division to the taxing units and Division of Motor Vehicles to enable them to account for payments received.
  • b1. Repealed by Session Laws 1995, c. 329, s. 2.
  • c. For classified motor vehicles listed pursuant to G.S. 105‑330.3(a)(2), the assessor shall appraise each vehicle in accordance with G.S. 105‑330.2. The assessor shall prepare a tax notice for each vehicle before September 1 following the January 31 listing date; the tax notice shall include all county and special district taxes due on the motor vehicle. In computing the taxes, the assessor shall use the tax rates of the taxing units in effect for the fiscal year that begins on July 1 following the January 31 listing date. Municipalities shall list, assess, and tax classified motor vehicles listed pursuant to G.S. 105‑330.3(a)(2) as provided in G.S. 105‑326, 105‑327, and 105‑328 and shall send tax notices as provided in this section.
  • d. The county shall include taxes on classified motor vehicles listed pursuant to G.S. 105‑330.3(a)(1) in the tax levy for the fiscal year in which the taxes become due and shall charge the taxes to the tax collector for that year, unless the tax notice required by subsection (a) is prepared after the date the taxes are due. If that occurs, the county shall include the taxes from that notice in the tax levy for the current fiscal year and shall charge the taxes to the tax collector for that year. (1991, c. 624, s. 1; 1991 (Reg. Sess., 1992), c. 961, s. 6; 1995, c. 24, s. 1; c. 329, s. 2; c. 510, s. 3; 2005‑294, s. 6; 2005‑313, s. 8; 2006‑259, s. 31.5; 2007‑527, s. 22(b); 2008‑134, s. 65.)

105‑330.5. (Effective July 1, 2013 – See Editor's note) Notice required; distribution and collection fees.

  • a. Notice for Registered Vehicle. – The Property Tax Division of the Department of Revenue or a third‑party contractor selected by the Property Tax Division must prepare a combined tax and registration notice for each registered classified motor vehicle. The combined tax and registration notice must contain all county and municipal corporation taxes and fees due on the motor vehicle as computed by the assessor in the county of registration. If the motor vehicle has a temporary or limited registration plate issued under G.S. 20‑79.1 or G.S. 20‑79.1A, the combined tax and registration notice must state that the vehicle registration fees for the plate have been paid and that the vehicle's registration becomes valid for the remainder of the year upon payment of the county and municipal corporation taxes and fees that are due. A combined tax and registration notice that sets out the required information on a vehicle issued a limited registration plate constitutes the registration certificate for that vehicle.
    In computing the taxes, the assessor must appraise the motor vehicle in accordance with G.S. 105‑330.2 and must use the tax rates and any additional motor vehicle taxes of the various taxing units in effect on the date the taxes are computed. The tax on the motor vehicle is the product of a fraction and the number of months in the motor vehicle tax year. The numerator of the fraction is the product of the appraised value of the motor vehicle and the tax rate of the various taxing units. The denominator of the fraction is 12. This procedure constitutes the listing and assessment of each classified motor vehicle for taxation.
    The combined tax and registration notice must contain the following:
  1. The appraised value of the motor vehicle.
  2. The tax rate of each taxing unit.
  3. A statement that the appraised value and the taxability of the motor vehicle may be appealed to the assessor in writing within 30 days of the due date.
  4. The registration fee imposed by the Division of Motor Vehicles and any other information required by the Division of Motor Vehicles to comply with the provisions of Chapter 20 of the General Statutes.
  5. Instructions for payment.
  • a1. Proration. – When a new registration is obtained for a registered classified motor vehicle that is registered under the annual system, the taxes are prorated for the remainder of the calendar year. The amount of prorated taxes due is the product of the proration fraction and the taxes computed according to subsection (a) of this section. The numerator of the proration fraction is the number of full months remaining in the calendar year following the registration application date and the denominator of the fraction is 12.
  • a2. Repealed by Session Laws 2009‑445, s. 24(a), effective July 1, 2011, and applicable to combined tax and registration notices issued on or after that date, or when the Division of motor vehicles and the Department of Revenue certify that the integrated computer system or registration renewal and property tax collection for motor vehicles is in operation, whichever occurs first.
  • b. Distribution and Collection Fees. – The Property Tax Division of the Department of Revenue or a third‑party contractor selected by the Property Tax Division must send a copy of the combined tax and registration notice for a registered classified motor vehicle to the motor vehicle owner, as defined in G.S. 20‑4.01. The Department must establish a fee equal to the actual cost of preparing, printing, and sending the notice. The Department may receive a fee for each notice generated for a vehicle registered in a county or municipal corporation from the taxes and fees remitted to the county or municipal corporation in which the vehicle is registered. The collecting authority is responsible for collecting county and municipal taxes and fees assessed under this Article and may receive a fee for collecting these taxes and fees. The amount of this fee must equal at least one‑third of the compensation paid for registration renewals conducted by contract agents under G.S. 20‑63(h). The Property Tax Division must establish procedures to ensure that tax payments and fees received pursuant to this Article and Chapter 20 of the General Statutes are properly accounted for and taxes and fees due other taxing units and the Division of Motor Vehicles are remitted at least once each month.
  • b1. Repealed by Session Laws 1995, c. 329, s. 2.
  • c. Notice for Unregistered Vehicle. – The assessor must prepare and send a tax notice for each unregistered classified motor vehicle before September 1 following the January 31 listing date. The notice must include all county and special district taxes due on the motor vehicle. In computing the taxes, the assessor must use the tax rates of the taxing units in effect for the fiscal year that begins on July 1 following the January 31 listing date. Municipalities must list, assess, and tax unregistered classified motor vehicles as provided in G.S. 105‑326, 105‑327, and 105‑328.
  • d. Scope of Levy. – A county must include taxes on registered classified motor vehicles in the tax levy for the fiscal year in which the taxes are collected.
  • e. Small Underpayment or Overpayment. – Notwithstanding G.S. 105‑357(c), the collecting authority must treat a small underpayment of taxes and fees as fully paid and not refund a small overpayment of taxes and fees unless the vehicle owner requests a refund before the end of the fiscal year in which the small overpayment is made. A "small underpayment" is a payment made, other than in person, that is no more than one dollar ($1.00) less than the taxes and fees due on the vehicle. A "small overpayment" is a payment made, other than in person, that is no more than four dollars and ninety‑nine cents ($4.99) greater than the taxes and fees due on the vehicle. (1991, c. 624, s. 1; 1991 (Reg. Sess., 1992), c. 961, s. 6; 1995, c. 24, s. 1; c. 329, s. 2; c. 510, s. 3; 2005‑294, s. 6; 2005‑313, s. 8; 2006‑259, s. 31.5; 2007‑471, ss. 4, 5; 2007‑527, s. 22(b); 2008‑134, s. 65; 2009‑445, ss. 24(a), 25(a); 2010‑95, s. 22(c), (d).)

105‑330.6. Motor vehicle tax year; transfer of plates; surrender of plates.

  • a. Tax Year. – The tax year for a classified motor vehicle listed pursuant to G.S. 105‑330.3(a)(1) and registered under the staggered system begins on the first day of the first month following the date on which the former registration expires or the new registration is applied for and ends on the last day of the month in which the current registration expires. The tax year for a classified motor vehicle listed pursuant to G.S. 105‑330.3(a)(1) and registered under the annual system begins on the first day of the first month following the date on which the registration expires or the new registration is applied for and ends the following December 31. The tax year for a classified motor vehicle listed pursuant to G.S. 105‑330.3(a)(2) is the fiscal year that opens in the calendar year in which the vehicle is required to be listed.
  • a1. Change in Tax Year. – If the tax year for a classified motor vehicle changes because of a change in its registration for a reason other than the transfer of its registration plates to another classified motor vehicle pursuant to G.S. 20‑64, and the new tax year begins before the expiration of the vehicle's original tax year, the taxpayer may receive a credit, in the form of a release, against the taxes on the vehicle for the new tax year. The amount of the credit is equal to a proportion of the taxes paid on the vehicle for the original tax year. The proportion is the number of full calendar months remaining in the original tax year as of the first day of the new tax year, divided by the number of months in the original tax year. To obtain the credit allowed in this subsection, the taxpayer must apply within 30 days after the taxes for the new tax year are due and must provide the county tax collector information establishing the original tax year of the vehicle, the amount of taxes paid on the vehicle for that year, and the reason for the change in registration.
  • b. Transfer of Plates. – If the owner of a classified motor vehicle listed pursuant to G.S. 105‑330.3(a)(1) transfers the registration plates from the listed vehicle to another classified motor vehicle pursuant to G.S. 20‑64 during the listed vehicle's tax year, the vehicle to which the plates are transferred is not required to be listed or taxed until the current registration expires or is renewed.
  • c. Surrender of Plates. – If the owner of a classified motor vehicle listed pursuant to G.S. 105‑330.3(a)(1) either transfers the motor vehicle to a new owner or moves out‑of‑state and registers the vehicle in another jurisdiction, and the owner surrenders the registration plates from the listed vehicle to the Division of Motor Vehicles, then the owner may apply for a release or refund of taxes on the vehicle for any full calendar months remaining in the vehicle's tax year after the date of surrender. To apply for a release or refund, the owner must present to the county tax collector within one year after surrendering the plates the receipt received from the Division of Motor Vehicles accepting surrender of the registration plates. The county tax collector shall then multiply the amount of the taxes for the tax year on the vehicle by a fraction, the denominator of which is the number of months in the tax year and the numerator of which is the number of full calendar months remaining in the vehicle's tax year after the date of surrender of the registration plates. The product of the multiplication is the amount of taxes to be released or refunded. If the taxes have not been paid at the date of application, the county tax collector shall make a release of the prorated taxes and credit the owner's tax notice with the amount of the release. If the taxes have been paid at the date of application, the county tax collector shall direct an order for a refund of the prorated taxes to the county finance officer, and the finance officer shall issue a refund to the vehicle owner. (1991, c. 624, s. 1; 1991 (Reg. Sess., 1992), c. 961, s. 7; 1995, c. 510, s. 4; 1998‑139, s. 3; 2001‑406, s. 1; 2001‑497, s. 1(a); 2005‑313, s. 9.)

105‑330.7:

Repealed by Session Laws 2005‑294, s. 7, effective July 1, 2011.

105‑330.8. (Effective until July 1, 2013 – See note) Deadlines not extended.

Except as otherwise provided in this Article, the provisions of G.S. 105‑395.1 and G.S. 103‑5 do not apply to deadlines established in this Article. (1991, c. 624, s. 1.)

105‑330.8. (Effective July 1, 2013 – See Editor's note) Deadlines not extended.

Except as otherwise provided in this Article, the following sections of the General Statutes do not apply:

  1. G.S. 105‑395.1 and G.S. 103‑5.
  2. G.S. 105‑321(f).
  3. G.S. 105‑360. (1991, c. 624, s. 1; 2009‑445, s. 24(a); 2010‑95, s. 22(c).)

105‑330.9. Antique automobiles.

  • a. Definition. – For the purpose of this section, the term "antique automobile" means a motor vehicle that meets all of the following conditions:
  1. It is registered with the Division of Motor Vehicles and has an historic vehicle special license plate under G.S. 20‑79.4.
  2. It is maintained primarily for use in exhibitions, club activities, parades, and other public interest functions.
  3. It is used only occasionally for other purposes.
  4. It is owned by an individual.
  5. It is used by the owner for a purpose other than the production of income and is not used in connection with a business.
  • b. Classification. – Antique automobiles are designated a special class of property under Article V, Sec. 2(2) of the North Carolina Constitution and must be assessed for taxation in accordance with this section. An antique automobile must be assessed at the lower of its true value or five hundred dollars ($500.00). (1995, c 512, s 2; 2009‑445, s. 24(a).)

105‑330.10. (See editor's note for effective date) Combined Motor Vehicle and Registration Account.

  • a. Account. – The Combined Motor Vehicle and Registration Account is established as a nonreverting account within the Department of State Treasurer. A taxing unit must remit to the Department of State Treasurer for deposit into the Account sixty percent (60%) of the first month's interest collected under G.S. 105‑330.4 on unpaid property taxes on classified and registered motor vehicles. The taxing unit must make the remittance on a monthly basis. Interest earned by the Account accrues to the Account.
  • b. Use. – Funds in the Account may be used only to develop and implement an integrated computer system within the Division of Motor Vehicles of the Department of Transportation that provides the functions needed for the assessment, billing, and collection of both the property taxes and the vehicle registration fees due on motor vehicles. The funds may not be transferred to the Division and expended for this purpose until the Department of Transportation and the North Carolina Association of County Commissioners agree on the project plan for the integrated system and the General Assembly appropriates the funds to the Division. If funds remain in the Account after the operation of the integrated system is certified, the remaining funds must be distributed to local governments on a pro rata basis determined on the amount of revenue each local government transferred to the Account.
  • c. Report. – The Treasurer must make an annual report on the Account to the Revenue Laws Study Committee. The report must be submitted by November 1 of each year and must state the total amount of revenue transferred by local governments to the Account during the preceding fiscal year, the amount expended from the Account during the preceding fiscal year, and any other information requested by the Committee. (2005‑294, s. 8; 2006‑30, s. 3; 2006‑259, s. 31.5; 2007‑471, s. 7(a); 2007‑527, s. 22(b); 2008‑134, s. 63; 2011‑330, s. 42(a)‑(c).)

105‑330.10. (Effective July 1, 2013 – See editor's note) Disposition of interest.

The interest collected on unpaid registration fees pursuant to G.S. 105‑330.4 shall be transferred on a monthly basis to the North Carolina Highway Fund for technology improvements within the Division of Motor Vehicles. (2005‑294, ss. 8, 9; 2006‑30, s. 3; 2006‑259, s. 31.5; 2007‑471, s. 7(a); 2007‑527, s. 22(a)‑(c); 2008‑134, ss. 63, 65, 66, 79; 2009‑445, s. 25(b); 2010‑95, s. 22(a), (b), (e); 2011‑330, s. 42(a)‑(c).)

105‑330.11. Memorandum of understanding.

The Department of Revenue, acting through the Property Tax Division, and the Department of Transportation, acting through the Division of Motor Vehicles are directed to enter into a memorandum of understanding concerning the administration of this Article. The memorandum of understanding must include the following:

  1. A procedure for the administration of the listing, appraisal, and assessment of classified motor vehicles.
  2. Information concerning vehicle identification, the name and address of a vehicle's owner, and other information that will be required on a motor vehicle registration form to implement the tax listing and collection provisions of this Article.
  3. A procedure for the business practices, accounting, and costs of carrying out the integrated computer system for registration renewal and property tax collection for motor vehicles once the system has been certified to be in operation by the Department of Revenue and the Department of Transportation. The Departments must consult with the North Carolina Association of County Commissioners, acting on behalf of the counties, and the North Carolina League of Municipalities, acting on behalf of the municipalities, in developing the procedures under this subdivision and obtain their signed endorsements before any part of this procedure is implemented. (2008‑134, s. 64; 2009‑445, s. 24(a).)

105‑330.12 through 105‑332:

Reserved for future codification purposes.