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FAQs <br />Q. Why is the state's collection of vehicle property <br />taxes changing? <br />In 2005, the North Carolina General Assembly <br />ratified House Bill 1779 to create a combined <br />motor vehicle registration renewal and property <br />tax collection system. The legislation places the <br />responsibility for motor vehicle property tax <br />collection for the state's 100 counties with the <br />Division of Motor Vehicles (DMV). The new <br />combined registration fee and tax collection has <br />become North Carolina's new ''Tag & Tax System.'' <br />Q. When does the new Tag & Tax System take <br />eff ect? <br />The new system is scheduled to be phased into <br />effect with vehicle registration renewals that are <br />due in July 2013. By June 2014, all North Carolina <br />vehicles will be enrolled in the system. <br />Q. Why has my registration renewal form <br />changed? <br />The new form combines information about your <br />vehicle registration renewal fee and your vehicle <br />property tax due. The new Tag & Tax System <br />allows you to make one payment for both <br />registration renewal and vehicle property tax. <br />Q. Will my vehicle registration renewal fee remain <br />the same? <br />Yes. Vehicle registration renewal fees will remain <br />the same annual cost. The only increase in your bill <br />will reflect the vehicle property tax amount. <br />Q. When is my vehicle tax due? <br />Your vehicle tax will be due at the same time you <br />renew your vehicle. North Carolina law requires <br />that your vehicle property tax be paid in order to <br />renew the vehicle registration. The due date will <br />be printed on the new combined notice that you <br />receive in the mail. <br />Q. Can I renew my vehicle registration if I do not <br />pay my property tax first? <br />No. You cannot renew your vehicle's registration, <br />whether it is leased or owned, unless the total <br />taxes and registration fees on the vehicle are <br />paid. <br />Q. Am I paying vehicle property taxes for the <br />coming year, or for the preceding year? <br />Taxes due on this notice are for the coming year, <br />covering the same period as the vehicle <br />registration. <br />Q. What if I lease my vehicle? Do I need to pay my <br />property taxes to the leasing company? <br />No. Vehicle property taxes on leased motor <br />vehicles must be paid in full at the time of <br />renewal. A copy of the combined tag and tax <br />notice is not sent to the leasing company. <br />Q. Is interest charged on late payments? <br />Yes. State law requires that interest be charged on <br />late vehicle property tax payments and on late <br />registration renewals. <br />Q. How will I know what vehicle property tax I <br />owe? <br />Your property tax will be included on the new <br />combined notice with your county and <br />municipality tax rates and other applicable taxes <br />due. <br />ARML <br />16 <br />Q. Will I receive a tax refund if I transfer my <br />license plate to another vehicle during the year? <br />No. If you have paid your vehicle property tax <br />for the year and then transfer the license plate <br />to another vehicle, you will not be eligible for a <br />refund of the taxes paid. The registered motor <br />vehicle to which the plates are transferred will <br />not be taxed until its current registration is <br />renewed. <br />Q. When can I apply for a refund of vehicle <br />property taxes paid? <br />An owner can apply for a refund of taxes paid <br />when a motor vehicle is sold or registered out of <br />state. The refund will be calculated on any full <br />calendar months remaining in the registration <br />period after the license plate is surrendered to <br />the N.C. Division of Motor Vehicles. Within one <br />year of surrendering the license plates, the <br />owner must present the following to the county <br />tax office: (1) Proof of plate surrender to N.C. <br />DMV (DMV Form FS20); and (2) Copy of the Bill of <br />Sale or the new state's registration. <br />Q. Should I pay vehicle property tax if I am <br />active duty military? <br />Active duty non - resident military personnel may <br />be exempt from North Carolina motor vehicle <br />property tax. To qualify for an exemption, you <br />must present a copy of your Leave & Earnings <br />Statement to the county tax office. The <br />statement should be for the month and year in <br />which you register the vehicle and must include <br />your Estimated Time of Separation (ETS) date <br />and home of record. Spouses and /or <br />dependents are not exempt unless they are <br />active duty military non - residents. <br />Questions? Please Contact Us <br />Orange County Tax Administration <br />228 South Churton Street <br />Suite 200 <br />Hillsborough, NC 27278 <br />Phone: (919) 245 -2725 Option #2 <br />Web: http: / /www.co.orange.nc.us <br />