News

NC to collect property tax along with tag renewal

By Bill Moss, Published: July 16, 2013

The state of North Carolina has figured out one more way to make taxes certain.

Starting in September, car owners will have to pay their property taxes on their motor vehicles when they renew their tag.
Motorists will see their vehicle's assessed value and the local property tax due when they get tag renewal information from the Division of Motor Vehicles. The tax bill will work similar to the way the state requires an auto inspection before it issues a tag renewal. The car owner must pay the tax plus the tag fee to get a new sticker.
"Any car due for a registration renewal in September or later is going to receive from DMV property tax information on the assessed value and the taxes due for the municipality, the county and the fire district with that bill," said Henderson County Assessor Stan Duncan, who is also tax collector.
One effect of the change is a one-time windfall for local governments and fire districts. The state will collect 16 months worth of motor vehicle property tax in the 2013-14 budget year until the timing of renewals squares up with the property tax year.
Henderson County billed residents for $858 million worth of motor vehicle value in 2012-13. If all were collected, the tax would raise $4.4 million. The four extra months of tax bills in this budget year should increase the total take by about $1.54 million, Duncan said.
Duncan said he won't be surprised if car owners think "he's hoo-dooin' me" when they receive their local property tax bill with their motor vehicle tag renewal information. The change does not mean the owner will pay more but some will pay their 2013-14 tax bill sooner.
Duncan, who was involved in a team of tax assessors and DMV officials who researched the new combined tag renewal/property tax system, said Kentucky and Georgia had similar systems that the North Carolina officials studied. He said the change should ratchet up the collection rate because motor vehicle owners can't get a tag renewal sticker until they've paid.