NC Vehicle Tax Solution

Farragut, the North Carolina Department of Revenue and the North Carolina Division of Motor Vehicles collaborated on a groundbreaking system that is achieving previously unattainable levels of system integration and revenue collection.

Previously vehicle registration fees and vehicle property taxes were being billed and paid separately, under a complex system in which each county was responsible for managing vehicle tax collections, while the state DMV collected registration fees. This led to data inconsistencies, duplicate costs and a steep erosion in voluntary compliance—with as many as 40% of vehicle owners not renewing or paying county taxes on time.

The North Carolina Vehicle Tax Solution—Tax & Tag Together— integrates vehicle property taxes with the billing of annual vehicle registration fees and so that they are billed and paid together. The result? An annual revenue increase of $220 million.