North Carolina § 105-187 - 3. Rate of tax.

§ 105-187. 3. Rate of tax.

Tax Base. - The tax imposed by this Article is applied to the sum of the retail value of a motor vehicle for which a certificate of title is issued and any fee regulated by G.S. 20-101.1. The tax does not apply to the sales price of a service contract, provided the charge is separately stated on the bill of sale or other similar document given to the purchaser at the time of the sale. Tax Rate. - The tax rate is three percent (3%). The maximum tax is two thousand dollars ($2,000) for each certificate of title issued for a Class A or Class B motor vehicle that is a commercial motor vehicle, as defined in G.S. 20-4.01, and for each certificate of title issued for a recreational vehicle. The tax is payable as provided in G.S. 105-187.4. Retail Value. - The retail value of a motor vehicle for which a certificate of title is issued because of a sale of the motor vehicle by a retailer is the sales price of the motor vehicle, including all accessories attached to the vehicle when it is delivered to the purchaser, less the amount of any allowance given by the retailer for a motor vehicle taken in trade as a full or partial payment for the purchased motor vehicle. Schedules. - In adopting a schedule of values for motor vehicles, the Commissioner shall adopt a schedule whose values do not exceed the wholesale values of motor vehicles as published in a recognized automotive reference manual. The retail value of a motor vehicle for which a certificate of title is issued because of a sale of the motor vehicle by a seller who is not a retailer is the market value of the vehicle, less the amount of any allowance given by the seller for a motor vehicle taken in trade as a full or partial payment for the purchased motor vehicle. A transaction in which two parties exchange motor vehicles is considered a sale regardless of whether either party gives additional consideration as part of the transaction. The retail value of a motor vehicle for which a certificate of title is issued because of a reason other than the sale of the motor vehicle is the market value of the vehicle. The market value of a vehicle is presumed to be the value of the vehicle set in a schedule of values adopted by the Commissioner. The retail value of a vehicle for which a certificate of title is issued because of a transfer by a State agency that assists the United States Department of Defense with purchasing, transferring, or titling a vehicle to another State agency, a unit of local government, a volunteer fire department, or a volunteer rescue squad is the sales price paid by the State agency, unit of local government, volunteer fire department, or volunteer rescue squad. History (1989, c. 692, ss. 4.1, 4.2; c. 770, s. 74.13; 1993, c. 467, s. 3; 1995, c. 349, s. 1; c. 390, s. 30; 2001-424, s. 34.24(a); 2001-497, s. 2(a); 2009-550, s. 2(e); 2010-95, s. 5; 2013-360, s. 34.29(a); 2013-363, s. 8.1; 2014-3, s. 6.1(g); 2014-39, s. 3; 2015-241, s. 29.34A(a); 2015-259, s. 5(d); 2015-268, s. 10.1(d).) Editor's Note. - Session Laws 2013-360, s. 1.1, provides: "This act shall be known as the 'Current Operations and Capital Improvements Appropriations Act of 2013.'" Session Laws 2013-360, s. 38.5 is a severability clause. Session Laws 2013-363, s. 8.1, amended Session Laws 2013-360, s. 34.29(b), by changing the effective date of the amendment to subsection (a) of this section by Session Laws 2013-360, s. 34.29(a), to July 1, 2014. Session Laws 2014-3, s. 6.1(g), and Session Laws 2014-39, s. 3, both amended subsection (a) of this section in the coded bill drafting format provided by G.S. 120-20.1 . However, the amendment by Session Laws 2014-3, s. 6.1(g) did not account for the changes made by Session Laws 2014-39, s. 3, and the section has been set out in the form above at the direction of the Revisor of Statutes. Session Laws 2015-241, s. 29.34A(c), as amended by Session Laws 2015-268, s. 10.1(d), provides: "This section becomes effective January 1, 2016, and applies to sales made on or after that date, or, for purposes of G.S. 105-187.5 , a lease or rental agreement entered into on or after that date." Session Laws 2015-241, s. 1.1, provides: "This act shall be known as 'The Current Operations and Capital Improvements Appropriations Act of 2015.'" Session Laws 2015-241, s. 33.6, is a severability clause. Session Laws 2015-259, s. 5(f), provides: "This section becomes effective March 1, 2016, and applies to service contracts purchased on or after date, if House Bill 97 of the 2015 Regular Session of the General Assembly is enacted." House Bill 97 was enacted as Session Laws 2015-241. Session Laws 2016-94, s. 38.5(a), provides: "A retailer is not liable for an undercollection of sales or use tax as a result of the changes made under Section 32.18 of S.L. 2015-241 and under Part V of S.L. 2015-259 if the retailer made a good-faith effort to comply with the law and collect the proper amount of tax. This applies only to the period beginning March 1, 2016, and ending December 31, 2016." Session Laws 2016-94, s. 1.2, provides: "This act shall be known as the 'Current Operations and Capital Improvements Appropriations Act of 2016.'" Session Laws 2016-94, s. 39.4, provides: "Except for statutory changes or other provisions that clearly indicate an intention to have effects beyond the 2016-2017 fiscal year, the textual provisions of this act apply only to funds appropriated for, and activities occurring during, the 2016-2017 fiscal year." Session Laws 2016-94, s. 39.7, is a severability clause. Effect of Amendments. - Session Laws 2009-550, s. 2(e), effective August 28, 2009, added subsection (b1). Session Laws 2010-95, s. 5, effective July 17, 2010, subdivided former subsection (b) into three paragraphs; and redesignated former subsection (b1) as the present fourth paragraph of subsection (b) by deleting the subsection (b1) designation and the subsection head, which read: "Retail Value of Transferred Department of Defense Vehicles." Session Laws 2013-360, s. 34.29(a), as amended by Session Laws 2013-363, s. 8.1, effective July 1, 2014, rewrote subsection (a). Session Laws 2014-3, s. 6.1(g), effective October 1, 2014, rewrote former subsection (a) as present subsections (a) and (a1). See Editor's note for applicability. Session Laws 2015-241, s. 29.34A(a), effective January 1, 2016, rewrote subsection (a1). For applicability, see editor's note. Session Laws 2015-259, s. 5(d), in subsection (a), added "provided the charge is separately stated on the bill of sale or other similar document given to the purchaser at the time of the sale" at the end of the last sentence, and deleted the former last sentence, which read: "The sales price of a service contract is subject to the sales tax imposed under Article 5 of this Chapter." For effective date and applicability, see editor's note.