For NC members (hopefully Johnston County members). I'm in the process of putting Antique Tags on my 67 for the 1st time since it was titled to me. I know according to NC law, with the Antique plates, the car can't be accessed a value higher than $500 for county property tax purposes, which equates to a property tax of $4.25 in my county. However, when I went to apply for the Antique plate on Fri., I was told by the local DMV license agency, it would be a total of $160.** $38 for the tag, and $122.** in property taxes. They said they were unaware of the law & if I wanted the plates, it would be $160 and that I would have to take it up with the JC Tax Office about the tax question. Anyone else in NC had this problem in NC?
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Re: North Carolina members---Tax ?
Al, This new collection system has just been implemented. On the dealer site, it says that any county tax rate deferrals etc. must be issued by the county, so, you ask for a limited registration good for 60 days, and then get the adjustment from the county. I understand that Johnston county is rather notorious for trying to get out of this tax loop hole for classic cars, but there is little that they can do but give you the duduction. -
Re: North Carolina members---Tax ?
Yeah Wayne, they want you to provide proof of entry into car shows, proof that the particular vehicle is registered with a car club, proof that it has been in a parade, etc. Will the 60 day limited registration include my purchase of the antique tag or is it a temp. tag like is usually issued by a dealer? By this, am I correct in assuming that I will not pay the tax at the time of the limited regist. request, but will pay it later?Comment
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Re: North Carolina members---Tax ?
This is what the dealer section says. There is a number to call for information.
Effective July 1, 2013, when a vehicle is sold, the property tax will be collected along with the other fees to title the vehicle. So the dealer will collect the title fee, highway use tax, registration plate fee and property tax. Also, property tax will begin showing on plate renewals in mid-2013.
The NCDOT website has a “Business Partner Resources” link where you can view and print “Approved Dealer Educational Courses”, “Dealer License Minimum Requirements”, “NC Title Manual”, “NC Dealer Manual” and a “Dealer Tag & Tax Together” information sheet containing questions and answers which will be updated.
https://connect.ncdot.gov/business/DMV/Pages/Car-Dealers.aspx
The NCDOT website has a link for the new “Tag & Tax Together” program containing general details.
http://www.ncdot.gov/dmv/vehicle/tagtax/
Are property taxes due on a newly purchased vehicle when it is titled?
Yes, beginning 7/1/13, the vehicle owner will pay the vehicle property taxes at the time the title work is done. However, if the owner chooses not to pay the taxes at that time, the owner can receive a Limited Registration and Property Tax Notice stating the amount of the vehicle property taxes due. The owner will receive a limited registration sticker, issued by the license plate agency that will expire after 60 days if the vehicle’s property taxes are not paid in full.
How will I know how much property tax to charge?
There will be a website the dealer will use to calculate the property tax or call (919) 814-1779 for assistance. There will be more to come about the website as it is made available.
If a plate is to be transferred from another vehicle, will the property taxes be due?
No, the taxes will be due on the next renewal date for that plate.
Can a dealer charge an extra fee to collect the tax?
No, but dealers can still continue to charge administrative or doc fees, which must be disclosed under current regulations already in place.
Will dealers issue the (60 day) limited registration sticker?
No, it will be issued by the license plate agency when the title work is done and the metal plate is issued unless the dealer is an on-line dealer doing their own title work and they will have the limited registration stickers.
Where will the customer pay the tax (after the sale) if they received the plate with the limited registration sticker?
The license plate agency, on-line or by mail and a year sticker will be issued to replace the limited registration sticker on the plate already issued.
Who should I contact if I have questions?
If you have DMV-related questions about the Tag & Tax Together program, please call (919) 814-1779.
Does property tax need to be on the Bill of Sale?
Yes, if the dealer collects the property tax, he should list it on the Bill of Sale. Highway use tax should not be charged on the property tax. No, if the dealer does not collect the tax, like with a cash sale where the customer is given the title work to deliver to the license plate agency and will pay it there.
Does property tax need to be on the 30 day marker receipt?
No, the receipt only lists “title and license fees collected by the dealer”.
If there is a trade in vehicle, is the property tax based on the purchase price less the trade in?
No, the property tax is based on the selling price of the vehicle (dealer sales only) regardless of a trade. Highway use tax, on the other hand, will still be based on the selling price less the trade-in.
If the owner lives in multiple counties, which county tax rate would we use for the property tax?
The owner will have to have a situs address, which is where the vehicle will be primarily domiciled. The property tax will be based on that address. The vehicle file can have a residence address, a mailing address, a vehicle location (situs) and a one-time address. (situs: n. the place where something exists or originates. Situs addresses are a common data element used in local government.)
Is the website for property tax rates going to be the central place where changes in the rates will be made?
Yes. It will be the same as the license plate agency system. The web site will have a tax estimator tool to enter
the price of a vehicle and an address. It will only provide an output based on what was entered. Any delay in
delivering the documents to the license plate agency could yield a different final property tax fee.
Should highway use tax be paid on the property tax?
No.
If I collect the property tax and the customer returns the vehicle before I go to the LPA, should the tax be
returned to the customer?
Yes, any fees and taxes should be returned to the customer and documented to protect you.
What if I collect the property tax and the customer returns that vehicle and gets another vehicle instead? If the fees have not been paid to DMV, you would return everything and start over. If the fees have been paid to
DMV, then they would have to deal with the county for their refund of property tax paid and they would pay full
fees for the second vehicle purchased.
What will happen if the customer does not pay the property tax after the 60 day period?
The plate will be expired causing the operator to be subject to a citation if the vehicle is driven, interest will be accruing on late payments and a valid sticker would not be issued until the tax is paid.
Who will grant any exemptions, like for active duty military?
The county tax office will handle any exemptions and should be contacted with those questions.
Does the dealer have to collect the property tax if he issues a 30 day marker?
Yes, the title application and applicable fees must be delivered to the license plate agency within 10 working days for processing if the dealer issues a 30 day marker. The license plate agency can only issue a plate if all the fees are collected or could issue the limited registration sticker if the property tax is deferred for the 60 days.Comment
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Re: North Carolina members---Tax ?
Thanks Wayne for the info. Ladies at the LP office said that pertained to dealers only and not individuals. I went ahead & got a plate today and will have to wait for the antique plate to come in and "then and only then" apply to the tax office for a refund per the tax office.Comment
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Re: North Carolina members---Tax ?
Update Was told today that because the car had not been in a show, a parade, or club activities showing that this specific car was involved in, or that I did not have this car registered to a club by serial #, or that it had not been in a special event prior to obtaining the Antique plate, it would not qualify for the $500 max cap on the value this year. If all of the above and other requirements are met this year and submitted with the proper forms to the tax office it would be eligible next year when the registration is renewed. Don't I just love Johnston Co. There is no one to appeal to on this at the county level--just not worth it for the time involved--pay the $122 tax this year and get the lower value next year (maybe)Comment
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Re: North Carolina members---Tax ?
Al, what is the appraised value of your car? You'll pay the 3 percent hwy use tax when you title your car, then it is the annual property tax you'll pay on the assessed value.. Seems like there are many hoops to jump through to save some cash.Comment
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Re: North Carolina members---Tax ?
Craig, I'm talking only about the county property tax value and tax amount due. The HU tax was paid when the title was transferred to my wife. Jo Co tax office stated to both my wife and I yesterday that if the conditions listed above and in the NC Dept Revenue book are met and we can provide proof of such, we would be eligible for the $500 max cap on the evaluation, which is approx. $5.25/yr next yr. Even though the $122 we paid in taxes were for this calander yr and the car will meet the requirements within the next month, it is not eligible for the $500 value because they had not been met prior to obtaining the title. CATCH 22 If it met the requirements prior to title transfer, you didn't own the car, so it doesn't apply. If after, it' too late- it will meet the requirement next year. Kinda like If you are sitting on a window sill and jump off, where are you at the exact moment you jump off? Or If you believe God can do anything he desires, can he make a rock so big and heavy that he can't lift it? Not sure if you're from NC or not, but as per Wayne's post above, the property tax must be paid when getting the license plate and with the plate renewal each yr. It's a new law in NC to help counties collect the taxes--No pay--No tag. A good thing, I suppose, but it can put a burden on fixed or low income persons to have to pay it all at 1 time. ANYWAY, let's end the thread here. I only posted to alert others in Jo Co or NC and to maybe ? vent a little.Comment
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Re: North Carolina members---Tax ?
I live in Wake County, so this is of interest. It would be nice to have a capped value of $500 for the Vette, but I only pay about $30 a year in property tax on my Vette, so in my case, it probably wouldn't make a lot of sense to spend who knows how much time at the County Revenue office every year to qualify for the $500 cap. Interesting discussion all the same, thanks!Comment
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Re: North Carolina members---Tax ?
I have never known Wake Co. to engage in the shenanigans that Johnston Co. does. I personally think Johnston Co is bordering on contempt for the law. Once in the system, there is never another question about it.Comment
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Re: North Carolina members---Tax ?
Johnston County is unique in many ways. I recall 25 years ago when the entire County was controlled by one man, and I watched as the board changed, sometimes being run by people from the northeastern U.S. It is still a rural farm community in the east, but the west is a bedroom community for Raleigh. This western growth has provided a ready source of revenue as many of these homes are expensive, and the people who purchased these homes brought nice cars with them, including Corvettes and other classics. It's really just a matter of tapping the classic car revenue potential, as many other communities are doing. This is something that we should all be concerned about.Comment
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Re: North Carolina members---Tax ?
Regardless of condition of the classic, Jo Co rates it like a Barrett-Jackson top of the line auto. Case in point, my 59 fuelie which is a driver only and needs everything to be a fully restored car was originally valued around $12,500 until 4 yrs back. Suddenly, it became valued at $54,200 without any work being done on it. When I called the tax office to alert them of their obvious error, I was told, that was the correct value. When asked where this value came from, their reply was, All classics are figured at the upper most value in the classic car guide on the internet (which, of course they could not provide an internet address) . You can appeal with a recognized appraiser within a short time frame (which would be almost impossible to meet), pictures, if the vehicle isn't drivable, and schedule meeting with the tax office. YOU WILL NOT win this one!! Like your power bill--once you get a high one, the rest will always higher than previously.Comment
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Re: North Carolina members---Tax ?
Hey Craig and other NC members, this may be coming to your county sooner than you think AND it will come as a new source of revenue to replace federal or state money that is no longer given freely to the counties. PAUL, you hit the nail on the head about the county being invaded by Wake County. Just hope it does not migrate further east. Dick, Percy still has a legacy across NC even many years after his passing. BUT, another name immediately came to my mind, that of a banker with a first name of Frank. Paul, are Dick and me close to who you had in mind? OK Dick, was what was made in your part of the state as good as "Mr." Percy'sComment
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Re: North Carolina members---Tax ?
Al, Percy put food on the plate of many in the part of the state, either directly as an employee or as a supplier. He always took good care of his people, if they had a little "misfortune" and had to be away from home for a few months or years, the family always had food, gasoline, and a roof over their head. No matter what he did for a living he was a pretty honorable man to many people.
Met Percy in the mid '60's and he made an impression on me.
Dick WhittingtonComment
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