September 2, 2013
The first combined tag and tax notices for vehicle registration renewals and newly purchased vehicles were due Sept. 1.
The new bills reflect both vehicle property tax information from counties and other taxing jurisdictions, as well as vehicle registration and inspection information. Drivers used to pay for tags and taxes separately. The new “Tag & Tax Together” program requires one payment for both bills. Both tag renewals and tax payments must be paid in full to renew your vehicle registration.
Vehicle owners with a “9” (for the month of September) sticker on their license tag are due to pay the combined bill in September. With each month that passes, additional vehicle owners will receive the new notice when their renewal is due. By mid-2014, the program should include all North Carolina vehicle owners.
Combined payments will also be due on vehicles purchased on or after Sept. 1, unless the owner elects not to pay the property tax at the point of sale. In this case, the owner will receive a limited registration plate that expires 60 days after the vehicle is titled. The North Carolina Division of Motor Vehicles will send a reminder notice to the owner stating the amount of property tax due.
For leased vehicles, the person purchasing the license plate will receive the combined bill. Leasing companies will need to make arrangements with their lessee as to how they want to collect fees and taxes.
An easy-to-read map of the combined notice posted on the DMV website shows where property tax information is listed and how to find vehicle registration information. After receiving your entire payment, NCDMV will renew your vehicle registration and forward the property tax portion of your payment directly to your county revenue office. Owners may pay the combined bill at their local license plate agency, online or by mail.
The DMV website features frequently asked questions about the combined billing program and contact information for county revenue offices across the state. A Spanish version of the questions has also been posted. (Vea una version en Español de las preguntas más frecuentes.) DMV has also produced a video to help explain the new program.
To figure out the projected total of your new bill, visit the Tag and Tax Estimator and plug in your vehicle information. Vehicle dealers and dealerships can also find information that explains how the program works with vehicle purchases, trade-ins and other situations.
The result of a law passed by the General Assembly in 2005, the new billing combination has required the incorporation of county tax rates into the vehicle registration system. It is designed to provide an easy one-time payment of vehicle tags and property taxes for vehicle owners.
In addition to the “Tag & Tax Together” information on the website, NCDMV, the N.C. Department of Revenue and North Carolina’s 100 counties have worked together to inform vehicle owners about the new combined payment program.
Key facts about the program:
• The new “Tag and Tax Together” program is for your vehicle property tax only and does not affect your mortgage or home property tax.
• Your vehicle tax will be due at the same time your vehicle registration is due. The due date will be printed on the new renewal notice that you receive in the mail.
• Your vehicle’s annual registration renewal fees will remain the same. The increase in your bill is from the addition of the vehicle property tax.
• No owner will have to pay taxes twice in the same tax year for the same vehicle. It is important to look at the vehicle property tax year rather than the calendar year. By law, the tax year for your vehicle begins the first month after your previous registration expires. While it is possible to pay twice in a calendar year, no vehicle owner will pay twice in the same tax year or for the same 12-month period.