NC Vehicle Use Tax or Sales Tax? (transfer, buy)

[mikeb29456]

So if you buy a new vehicle in NC, and if I am reading the NC State website correctly; you have to pay a Highway Use Tax (HUT) versus a sales tax, correct? Or do you get shafted twice? One at the car dealer when you buy the car and then another when you register the car. Sounds like the HUT takes place of the sales tax and the dealer shouldn't be charging this tax.

[emelvee]

3% Highway Use Tax applies each time title is transferred, in place if any sales tax. But I think a lot of people think of HUT as "sales tax."

https://www.ncdot.gov/dmv/vehicle/title/tax/

[BC1960]

Compare the quality of the state highways in SC versus NC. Then tell me who's getting shafted.

[lepoisson]

There is no vehicle sales tax in NC, only a 3% HUT. Honestly, it's a better deal than in most other states. Here in Texas, we have to pay 6.25%.

[mikeb29456]

So when you buy a new car, there is no sales tax tacked on the invoice. Correct?

[MrRational]

Originally Posted by mikeb29456

So if you buy a new vehicle in NC you have to pay a .... tax, correct?

Yes. The same as anywhere else.

But in most states ...you pay an EXCISE or title tax ONCE ... (at time of sale) and you're done.
Let's say it's 6% on a $25,000 car making it $1500.

Then you'll also pay the annual registration fees to have tags etc.
I prefer this btw. Keeping the ideas and the payments separate.

Or do you get shafted twice?

In NC, so that all the po folks can be fooled better they split this up into HALF paid at the time of the sale...

and the rest, the other $1500 (usually a fair bit more) in an onerous and annoying, cumbersome and expensive
administrative process of never ending death by a thousand strokes bit by bit by bit over the term of ownership
annual TAX payments in addition to the annual registration fees.

They even have a cutesy name for it all: "Tax and Tags Together"
(like it's a good thing)

Do the math and you'll see that the 'po folks get shafted
as do the not so po folks too.
---

Next you can ask about the money grab known as "annual inspections"
(they like to have you think this is about safety... it isn't)

[lepoisson]

Are property taxes still a county by county thing or are they a statewide thing now? Do you get the tax bill before or after renewing registration? That was the worst part of having NC registration. Waiting for that several hundred dollar bill after renewing registration.

[roadpony]

Originally Posted by lepoisson

Are property taxes still a county by county thing or are they a statewide thing now? Do you get the tax bill before or after renewing registration? That was the worst part of having NC registration. Waiting for that several hundred dollar bill after renewing registration.

Property taxes on vehicles are levied by cities/counties, but collected by the state (on behalf of the local governments) when you renew your license plate/registration.

[lepoisson]

Originally Posted by roadpony

Property taxes on vehicles are levied by cities/counties, but collected by the state (on behalf of the local governments) when you renew your license plate/registration.

So you have to go into a license plate office to renew now? Or can you pay the tax online?

For new residents, are they charged property tax as well?

[roadpony]

Originally Posted by lepoisson

So you have to go into a license plate office to renew now? Or can you pay the tax online?

For new residents, are they charged property tax as well?

Renewal notices are mailed out. You can pay online or in person.

Property taxes must be paid at the time you register a vehicle in NC. https://www.ncdot.gov/dmv/vehicle/title/