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North Carolina Owners Tax Question

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Old 04-06-2014, 11:15 AM
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59vetteman
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I went to get Antique plates on my 67 for the 1st time since it was registered to me on Fri. According to NC law, if using Antique plates, it can't be accessed at a value greater than $500 for local property taxes (which as we know in NC must be paid along with tag purchases or renewals). For Johnston County, this would equate to $4.25. When trying to purchase the Antique tag, the NCDMV license plate agent told me it would be $160.** of which $122.** would be JC property taxes. I questioned her about the law, which she was unaware of and she called the DMV main office in Raleigh. They, too, said they were unaware of it. I was told I would have to pay the $160 amount in order to get the tag and take it up with the JC tax office for a refund on the property taxes. Anyone else have this experience and what were the results?
Old 04-06-2014, 02:14 PM
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65GGvert
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Originally Posted by 59vetteman
I went to get Antique plates on my 67 for the 1st time since it was registered to me on Fri. According to NC law, if using Antique plates, it can't be accessed at a value greater than $500 for local property taxes (which as we know in NC must be paid along with tag purchases or renewals). For Johnston County, this would equate to $4.25. When trying to purchase the Antique tag, the NCDMV license plate agent told me it would be $160.** of which $122.** would be JC property taxes. I questioned her about the law, which she was unaware of and she called the DMV main office in Raleigh. They, too, said they were unaware of it. I was told I would have to pay the $160 amount in order to get the tag and take it up with the JC tax office for a refund on the property taxes. Anyone else have this experience and what were the results?
You may be confusing the 3% road use tax and the property tax. I live in Cabarrus Co and my property tax is about $6 plus $15 Kannapolis City tax. However, when you purchase a car in NC, you have to pay a one time 3% road use tax based on the value on record in Raleigh. It is usually nowhere near as high as the value of an antique car, but it is more than the property tax. I believe my first bill for road use tax, tag and title was $195, but it's around 20 bucks a year for property tax when you renew your registration.
Old 04-06-2014, 02:43 PM
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cbernhardt
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Was the car registered to you previously and did you have regular plates prior to your going to get antique plates?

If you were getting a new title in your name, North Carolina collects a Highway Use Tax (HUT) on vehicles instead of a state sales tax. The tax is assessed each time a title is transferred. The HUT for vehicles is 3%. Are you sure the $122 is not the HUT?

Charles
Old 04-06-2014, 07:12 PM
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MAD IN NC
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just paid mine (renewal) on two cars in the last 30 days with standard plates/ tax in Wake.

1- 73 Eldorado was.. $39.51
$28.00 License
$5.00 RTA/ GTP
$6.51 Property Tax

2- 1969 Mach 1 was $42.22
$28.00 License
$5.00 RTA/ GTP
$15.22 Property Tax

and as you know now, to get plates renewed you have to pay the standard "Property Tax" at renewal so the state always collect their monies first before sending the renewal sticker

the 65 Vette was the $33.00 and $70.98 Property tax for $103.98 in 2013 and the new bill should be showing up in the next few days... I believe the appraised value was somewhere around ~$11,250?

shhhhhhh
Old 04-06-2014, 08:32 PM
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59vetteman
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Highway use tax has already been paid at the time of the title transfer (outrageous amount). This involves the county property tax which is now collected by the DMV at the time of plate renewal or 1st issuance of a plate. NC state law general statues Chapt 105-330.9 states that if it is registered as an antique, it shall be accessed at the lower of it's true value or $500 (1995, c.512, s.2.). Used to, before the state started collecting the property tax last year, this wasn't a problem. My question is how do you convince the License plate agency and the DMV office in Raleigh of this statute . I know on my 59 vette the property tax is only $4.20 in Jo Co on the $500. My experience in the past with tax offices is once they get your money, you don't get it back. I've sold many cars and according to state statutes, if you notify the tax offices and send them sufficient documentation, you are entitled to that portion of the tax in a refund on a pro-rated basis. Only once have I been successful at this. I'm trying to prevent having to pay the $122 up front when I know I will only owe $4.20
Old 04-06-2014, 09:04 PM
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If you change to Antique plates in NC you only have to pay the $38.00 plate fee and then the car is assessed a $500 value and the property tax is less than $5 so they do not sen you a bill. The DMV ladies in Smithfield are just there to renew tags. If you want to talk to someone that knows what they are talking about you will have to call Raleigh. I would not pay the extra as it's not needed. Glad to hear that your car is closer to being on the road!!! Cheers..

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Old 04-07-2014, 07:12 AM
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You shouldn't have to convince anybody of anything. When you got your antique tag, soon after, you should have received a letter from the state asking you to state that you would not drive it for commercial purposes and that you had another car, etc, and mail it back to Raleigh. If you didn't fill out, sign, and return the letter they probably don't have you classified as an antique auto. It is in writing on the letter (on the back) that you will be taxed on a value of $500 or actual value, WHICHEVER IS LESS. When you renew, there's no convincing, that's just what your bill should be.
Old 04-08-2014, 07:35 PM
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59vetteman
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Thanks Hitch, no luck with Raleigh. They played dumb on the tax and said it had to be paid when getting the plate and then it was up to me to contact Jo Co tax office to request a refund. Jo Co tax collector stated I would need to contact them after and only after I got the antique plate and then they would mail me a form to fill out and re-submit to them with a copy of the antique registration form. Same BS as when I got the antique plate for my 59. SO, I just went today and got the temporary plate and will wait for the antique plate to arrive and then be told I'm not eligible foe the $500 value this year and I'll have to wait till next year, like they did on the 59 Same BS, different day from JC tax office. Just maybe, though!!! Again thanks.

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