A new law in North Carolina requiring vehicle owners to pay their property
taxes and license tag renewals at the same time would be nixed before it ever
takes effect under an effort in the statehouse.
The law was the result of legislation offered by Rep. Dale
Folwell, R-Forsyth, to combine the two annual expenses for cars and trucks into
one process. It received unanimous support in the House and Senate during the
Now it’s facing opposition because of how it affects car and
truck dealers and the potential cost to combine computer systems, the Winston-Salem
Journal reported. A measure approved July 11 by the House Rules Committee
this month would repeal the law before it takes effect in 2009.
The law is intended to cut down on delinquent tax payments
and help cities and counties collect about $80 million a year in taxes that go
It requires the Division of Motor Vehicles and the North
Carolina Department of Revenue to develop an integrated computer system so that
vehicle property-tax bills and registration-renewal forms could be mailed out
Cities and counties also would save $8 million a year by
reducing the number of past-due notices sent out.
However, car and truck dealers say that people who buy
vehicles and then immediately title them would have to pay local property tax
at the same time, rather than waiting up to a year as the current law allows,
the Journal reported.
Folwell said that dealers are exaggerating the effect of
collecting the tax but that didn’t stop Rep. Nelson Cole, D-Rockingham, from
pushing an effort to repeal the law.
Cole said his biggest concern is the initial cost of $20
million to implement the rule, plus $18 million annually for equipment and
The effort is awaiting consideration on the House floor. If
approved, it would head to the Senate.