GENERAL ASSEMBLY OF NORTH CAROLINA

SESSION 1989

H	1 

HOUSE BILL 2155

Short Title:  No Highway Tax on Name Changes.	(Public)
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Sponsors: Representatives Easterling, Wiser (co-sponsors); Barnhill, Blue, Colton, Foster, Gardner, Holt, Kennedy, Lineberry, Lutz, and Perdue.
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Referred to:  Infrastructure.
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May 29, 1990

A BILL TO BE ENTITLED
AN ACT TO EXEMPT FROM THE HIGHWAY USE TAX A MOTOR VEHICLE TITLE THAT IS ISSUED BECAUSE OF A NAME CHANGE OF THE OWNER.
The General Assembly of North Carolina enacts:
Section 1.  G.S. 105-187.6 reads as rewritten:
"§ 105-187.6.  Exemptions from highway use tax.
(a)	Full Exemptions. – The tax imposed by this Article does not apply when a certificate of title is issued as the result of a transfer of a motor vehicle:
(1)	To the insurer of the motor vehicle under G.S. 20-109.1 because the vehicle is a salvage vehicle.
(2)	To either a manufacturer, as defined in G.S. 20-285, or a motor vehicle retailer for the purpose of resale.
(3)	To the same owner to reflect a change or correction in the owner's name.
(b)	Partial Exemptions. – Only the minimum tax imposed by this Article applies when a certificate of title is issued as a result of the transfer of a motor vehicle:
(1)	By a gift between a husband and wife or a parent and child.
(2)	By will or intestacy.
(3)	By a distribution of marital property as a result of a divorce.
(4)	To a secured party who has filed a security interest in the motor vehicle with the Department of the Secretary of State.
(5)	To a partnership or corporation as an incident to the formation of the partnership or corporation and no gain or loss arises on the transfer under section 351 or section 721 of the Internal Revenue Code, or to a corporation by merger or consolidation in accordance with G.S. 55-110.
	(c)	Out-of-state Vehicles. – A maximum tax of one hundred dollars ($100.00) applies when a certificate of title is issued for a motor vehicle that, at the time of applying for a certificate of title, is and has been titled in another state for at least 90 days."
Sec. 2.  This act shall become effective July 1, 1990.