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Motor Vehicles

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1. Why is the state's collection of vehicle property taxes changing?

The North Carolina General Assembly ratified House Bill 1779 to create a combined motor vehicle registration renewal and property tax collection system.

The legislation places the responsibility for motor vehicle property tax collection for the state’s 100 counties with the Division of Motor Vehicles (DMV). The new combined registration fee and tax collection has become the North Carolina new

Tag and Tax Together System.

2. When does the new Tag and Tax Together System take effect?

The new system took effect with the September 2013 renewals.

3. Why has my registration renewal form changed?

The new form combines information about your vehicle registration renewal fee and your vehicle property tax due. The new Tag and Tax System allows you to make 1 payment for both registration and vehicle property tax.

4. Will my vehicle registration renewal fee remain the same?

Yes. Vehicle registration renewal fees will remain at the same annual cost. The only increase in your bill will reflect the vehicle property tax amount.

5. When is my vehicle tax due?

Your vehicle tax will be due at the same time you renew your vehicle. North Carolina law requires that your vehicle property tax be paid in order to renew the vehicle registration. The due date will be printed on the new combined notice that you receive in the mail.

6. Can I renew my vehicle registration if I do not pay my property tax 1st?

No. You cannot renew your vehicle’s registration, whether it is leased or owned, unless the total taxes and registration fees on the vehicle are paid.

7. Am I paying property taxes for the coming year, or for the preceding year?

Taxes due on this notice are for the coming year, covering the same period as the vehicle registration.

8. What if I lease my vehicle? Do I need to pay my property taxes to the leasing company?

No. Vehicle property taxes on leased motor vehicles must be paid in full at the time of renewal. A copy of the combined tag and tax notice is not sent to the leasing company.

9. Is interest charged on late payments?

Yes. State law requires that interest be charged on late vehicle property tax payments and on late registration renewals.

10. How will I know what vehicle property tax I owe?

Your property tax will be included on the new combined notice with your county and municipality tax rates and other applicable taxes due.

11. Will I receive a refund if I transfer my license plate to another vehicle during the year?

No. If you have paid your vehicle property tax for the year and then transfer the license plate to another vehicle, you will not be eligible for a refund of the taxes paid. The registered motor vehicle to which the plates are transferred will not be taxed until its current registration is renewed.

12. When can I apply for a refund of vehicle taxes paid?

An owner can apply for a refund of taxes paid when a motor vehicle is sold or registered out of state. The refund will be calculated on any full calendar months remaining in the registration period after the license plate is surrendered to the North Carolina Division of Motor Vehicles (NC DMV). Within 1 year of surrendering the license plates, the owner must present proof of plate surrender to NC DMV (DMV form FS20), and a copy of the bill of sale or the new state’s registration to the county tax office at 135 East Water Street.

For more information, you may contact the Iredell County Assessor’s Office at 704-878-3018 or visit their webpage.

13. Should I pay vehicle property tax if I am active duty military?

Active duty, non-resident military personnel may be exempt from North Carolina motor vehicle property tax. To qualify for an exemption, you must present a copy of your Leave and Earnings Statement to the county tax office that lists your home of record for a state other than North Carolina. The statement should be for the month and year in which you registered the motor vehicle and must include your Estimated Time of Separation (ETS) date and home of record. If your home of record on your Leave and Earnings Statement is North Carolina, you must pay the vehicle property tax here.

14. Can I appeal the value of my vehicle?

Yes, you can call the tax office for more information at 704-878-3018.

15. What is gap billing of property taxes for unregistered vehicles?

Gap billing of property taxes occurs when there is a gap (one or more months) in billed property taxes between the expiration of a vehicle’s registration and the renewal of that registration or the issuance of a new registration. The vehicle is an unregistered vehicle during the gap in registration.

16. Why did I receive a vehicle registration gap property tax notice?

There was a gap in the registration of your vehicle resulting in a gap in the taxes billed. The registration for your vehicle previously expired. The vehicle registration was recently renewed or a new registration was issued. During the gap in registration, the vehicle was unregistered. The County is required to collect property taxes for unregistered vehicles per North Carolina General Statute 105-330.3.

17. Does the property tax I paid when I renewed my registration apply to the gap billing period?

No. Property taxes paid to the North Carolina Department of Motor Vehicles (NCDMV) at the time of registration renewal or issuance are for the same 12-month period as your registration. The taxes billed on a gap property tax notice are only for the months your vehicle was not registered with the NCDMV.

18. How many months can a vehicle registration gap property tax notice cover?

A gap property tax notice will cover at least one month and can cover all months between registrations, without limitation.

19. When is my vehicle value determined?

Vehicle value is determined as of January 1 of the calendar year in which the gap property tax notice was computed.

20. How can I appeal?

Appeals of value, situs (location where taxed), and taxability must be filed with the tax office within thirty (30) days of the due date on this notice.

21. When are the taxes due and when does interest start?

Taxes are due by the September 1 that follows the gap property tax notice date and can be paid without interest before the following January 6. Interest accrues for taxes paid on or after January 6 at 2% for the month of January and accrues at ¾ of 1% for each following month.

22. What if I do not pay?

Taxes are delinquent if unpaid on January 6 that follows the September 1 due date. Delinquent taxes are subject to garnishment of wages and levy on personal property immediately upon becoming delinquent.