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a. Changes in Taxation for Motor Vehicles <br /> The Board will receive an overview of the upcoming changes to the taxation of <br /> registered motor vehicles as stipulated in House Bill 1779, and information on the current <br /> status of the project. <br /> Dwane Brinson, Orange County Tax Administrator, presented a PowerPoint presentation and <br /> discussed the slides included below: <br /> North Carolina <br /> "Tag and tax" <br /> Background: <br /> • General Assembly passed HB 1779 in 2005 <br /> • Bill was delayed a couple of times, but now is moving forward towards implementation <br /> • Will take effect with vehicle registration renewals due July, 2013 <br /> Current System: "Billing in Arrears" <br /> • Taxpayer renews vehicle registration through NCDMV, either online, mail or in person <br /> • Tax office receives monthly file of all new registrants from the preceding month <br /> • Vehicle property tax bill mailed out by tax office approximately 3 months after <br /> registration renewal <br /> • Vehicle property tax bill due the 4th month after registration renewal <br /> Current System: "Billing in Arrears" <br /> • On average, 66% of Registered Motor Vehicle (RMV) bills are paid on time <br /> • In a full fiscal year, vehicle tax collections across are significantly less than annual bills <br /> • Figure 1- Fiscal Year Ended June 30, 2011 Collections (Table) <br /> New System <br /> • "Tag and Tax" project <br /> • Combines vehicle property tax notice and payment with the vehicle registration process <br /> • Invitation to renew <br /> - Registration fee and vehicle tax notice sent in advance <br /> • Taxpayers must pay vehicle property tax at same time as vehicle registration fee <br /> - Must be paid in full <br /> New System <br /> • Assessor determines value, situs, and taxable status of the vehicle in advance — not in <br /> arrears <br /> • File is "delivered" to DMV to prepare the invitations to renew the registration <br /> • Taxes must be paid in order to obtain the registration — no partial payments will be <br /> allowed <br /> Configuration <br /> • Vehicle Tax System (VTS) will be a separate system housed by the NC Department of <br /> Revenue <br /> • NCDMV responsible for titles and registrations <br /> • NCDOR responsible for tax administration of vehicles <br />