GENERAL ASSEMBLY OF NORTH CAROLINA

SESSION 1989

H	1 

HOUSE BILL 98

Short Title:  Motor Vehicle Property Tax.	(Public)
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Sponsors: Representatives Redwine; and Buchanan.
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Referred to:  Finance.
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January 26, 1989

A BILL TO BE ENTITLED
AN ACT TO PROVIDE FOR A MORE EFFICIENT AND EQUITABLE PROCEDURE FOR ASSESSING AND COLLECTING LOCAL AD VALOREM PROPERTY TAXES ON CERTAIN MOTOR VEHICLES.
The General Assembly of North Carolina enacts:
Section 1.  Subchapter II of Chapter 105 of the North Carolina General Statutes is amended by adding after Article 22 a new Article to read:
“Article 22A.
"Motor Vehicles.
"§ 105-329.  Definitions.
The following definitions apply in this Article.
(1)	Motor vehicle.  Defined in G.S. 20-4.01(23).
(2)	Public service company.  Defined in G.S. 105-333(14).
"§ 105-329.1. Classification of motor vehicles.
All motor vehicles, except mobile homes and motor vehicles owned by public service companies, are hereby designated a special class of property under authority of Article V, Sec. 2(2)	of the North Carolina Constitution.  Motor vehicles so classified shall be listed and assessed, and taxes thereon shall be collected, as provided in this Article.  Such motor vehicles are defined and referred to in this Article as ‘classified motor vehicles'.
"§ 105-329.2.  Appraisal, ownership, and situs.
(a)	The value of a classified motor vehicle shall be determined annually as of January 1 preceding the date a new registration is applied for, a current registration is renewed, or a current registration expires.  If the value of a new motor vehicle cannot be determined as of January 1 preceding the date the new registration is applied for, the value of that vehicle shall be determined for that year as of the first day of the month in which the new registration is applied for.  For classified motor vehicles listed pursuant to G.S. 105-329.3(a)(1), the ownership, situs, and taxability of the vehicles shall be determined annually as of the day on which the current vehicle registration is renewed or the day on which a new registration is applied for.  For classified motor vehicles listed or discovered pursuant to G.S. 105-329.3(a)(2), ownership, situs, and taxability shall be determined as of the date the unregistered vehicle is acquired or, in the case of a registration that is not renewed, as of the day on which the current registration expires.
(b)	A classified motor vehicle shall be appraised by the assessor at its true value in money as prescribed by G.S. 105-283.  The owner of a classified motor vehicle may appeal the appraisal, situs, or taxability of the vehicle in the manner provided by G.S. 105-312(d) for appeals in the case of discovered property.  Notwithstanding G.S. 105-312(d), a person appealing the listing, valuation, or assessment of a classified motor vehicle shall pay the tax on the vehicle when due, subject to a full or partial refund if the appeal is decided in his favor.
(c)	The Department of Revenue, acting through the Property Tax Division, and the Department of Transportation, acting through the Division of Motor Vehicles, shall enter into a memorandum of understanding concerning the vehicle identification information, name and address of the owner, and other information that will be required on the motor vehicle registration forms to implement the tax listing and collection provisions of this Article, and such information shall appear on the forms beginning January 1, 1990.
"§ 105-329.3.  Assessor's duty to list classified motor vehicles; application for exempt status.
(a)	(1)	Registered Vehicles. The assessor shall list, appraise, and assess all taxable classified motor vehicles for county, municipal, and special district taxes each year in the name of the record owner as of the day on which the current vehicle registration is renewed or the day on which a new registration is applied for.  The owner of a classified motor vehicle listed pursuant to this subdivision need not list the vehicle as provided in G.S. 105-306;  G.S. 105-312 does not apply to classified motor vehicles listed pursuant to this subdivision.
(2)	Unregistered Vehicles.  The owner of a classified motor vehicle who does not register the vehicle or does not renew the registration of the vehicle on or before the expiration date of the current registration shall list the vehicle for taxes by filing an abstract with the assessor of the county in which the vehicle is located on or before January 31 following the date the unregistered vehicle is acquired or, in the case of a registration that is not renewed, January 31 following the date the registration expires.  If the owner fails to list the vehicle by that date, the vehicle shall be subject to discovery pursuant to G.S. 105-312.
(b)	The owner of a classified motor vehicle who claims an exemption or exclusion from tax under this Subchapter has the burden of establishing that the vehicle is entitled to the exemption or exclusion.  The owner may establish prima facie entitlement to exemption or exclusion of the classified motor vehicle by filing an application for exempt status with the assessor.  When such an approved application is on file, the assessor shall omit from the tax records all exempt classified motor vehicles registered in the name of the owner.
(c)	The owner of a classified motor vehicle that has been omitted from the tax records as provided in subsection (b) shall report to the assessor any classified motor vehicle registered in the owner's name that does not qualify for exemption or exclusion for the current year.  This report shall be made within 30 days after the renewal of registration or initial registration of the vehicle.  A classified motor vehicle that does not qualify for exemption or exclusion but has been omitted from the tax records as provided in subsection (b) is subject to discovery under the provisions of G.S. 105-312, except that in lieu of the penalties prescribed by G.S. 105-312(h) there shall be assessed a penalty of one hundred dollars ($100.00) for each registration period that elapsed before the disqualification was discovered.
(d)	The provisions of G.S. 105-282.1 do not apply to classified motor vehicles.
"§ 105-329.4.  Due date, interest, and enforcement remedies.
(a)	Taxes on a classified motor vehicle listed pursuant to G.S. 105-329.3(a)(1) shall be due each year on the first day of the fourth month following the date the registration expires or on the first day of the fourth month following the last day of the month in which the new registration is applied for.  Taxes on a classified motor vehicle listed pursuant to G.S. 105-329.3(a)(2) shall be due on September 1 following the date by which the vehicle was required to be listed.
(b)	Subject to the provisions of G.S. 105-395.1, interest on unpaid taxes on classified motor vehicles listed pursuant to G.S. 105-329.3(a)(1) accrues at the rate of three-fourths of one percent (3/4%) per month following the date the taxes were due until the taxes are paid.  Subject to the provisions of G.S. 105-395.1, interest on delinquent taxes on classified motor vehicles listed pursuant to G.S. 105-329.3(a)(2) accrues as provided in G.S. 105-360(a) and discounts shall be allowed as provided in G.S. 105-360(c).
(c)	Unpaid taxes on classified motor vehicles may be collected by levying on the motor vehicle taxed or on any other personal property of the taxpayer pursuant to G.S. 105-366 and G.S. 105-367, or by garnishment of the taxpayer's property pursuant to G.S. 105-368.
(d)	Notwithstanding the provisions of G.S. 105-355, taxes on classified motor vehicles do not become a lien on real property owned by the taxpayer.
"§ 105-329.5.  Listing and collecting procedures.
(a)	For classified motor vehicles listed pursuant to G.S. 105-329.3(a)(1), the assessor shall, upon receiving the registration lists from the Division of Motor Vehicles each month, prepare a tax notice for each vehicle, which shall contain all county, municipal, and special district taxes due on that motor vehicle.  In computing the taxes, the assessor shall appraise the motor vehicle in accordance with G.S. 105-329.2 and shall use the tax rates of the various taxing units in effect on the first day of the month in which the current vehicle registration expired or the new registration was applied for.  This procedure shall constitute the listing and assessment of each classified motor vehicle for taxation.
(b)	For classified motor vehicles listed pursuant to G.S. 105-329.3(a)(2), the assessor shall appraise each vehicle in accordance with G.S. 105-329.2.  The assessor shall prepare a tax notice for each vehicle before September 1 following the January 31 listing date; the tax notice shall include all county, municipal, and special district taxes due on the motor vehicle.  In computing the taxes, the assessor shall use the tax rates of the various taxing units in effect for the fiscal year that begins on July 1 following the January 31 listing date.
(c)	When the tax notice is prepared, the county tax collector shall mail a copy of the notice, with appropriate instructions for payment, to the motor vehicle owner.  The county may retain up to five percent (5%) of municipal and special district taxes collected pursuant to this section as compensation for the cost of collecting the taxes, unless other contractual arrangements for reimbursement of collection costs are in effect.  The county finance officer shall establish procedures to ensure that tax payments received pursuant to this section are properly accounted for and taxes due taxing units other than the county are properly disbursed.
(d)	The county shall include taxes on classified motor vehicles in the tax levy for the fiscal year in which the taxes become due and shall charge the taxes to the tax collector for that year.
"§ 105-329.6.  List of delinquents sent to Division of Motor Vehicles.
On the 10th day of each month the county tax collector shall prepare a list of all owners of classified motor vehicles on which taxes remain unpaid on that date and on which taxes became due on the first day of the fourth month preceding that date.  The tax collector shall mail that list to the Division of Motor Vehicles.  The list of delinquent taxpayers shall be in such form and contain such information as the Division of Motor Vehicles may require.
"§ 105-329.7.  Deadlines not extended.
Except as otherwise provided in this Article, the provisions of G.S. 105-395.1 and G.S. 103-5 do not apply to deadlines established in this Article."
Sec. 2.  Article 22 of Chapter 105 of the General Statutes is amended by adding a new section to read:
"§ 105-328.1.  Article inapplicable to classified motor vehicles.
The provisions of this article do not apply to the listing, appraisal, and assessment of classified motor vehicles, as defined in G.S. 105-329.1."
Sec. 3.   G.S. 105-373 is amended by adding a new subsection (h) to read:
"( h)	Relief from Collecting Taxes on Classified Motor Vehicles.  The board of county commissioners may, in its discretion, relieve the tax collector of the charge of taxes on classified motor vehicles that are one year or more past due when it appears to the board that the taxes are uncollectible.  This relief, when granted, shall include municipal and special district taxes charged to the collector."
Sec. 4.  G.S. 20-50.2 is repealed.
Sec. 5.  Article 3 of Chapter 20 of the General Statutes is amended by adding two new sections to read:
"§ 20-50.3. Division to furnish county assessors registration lists.
On the 10th day of each month the Division shall send to each county assessor a list of vehicles for which registration was renewed or a new registration was obtained in that county during the second month preceding that date, with the name and address of each vehicle owner.
"§ 20-50.4.  Division to refuse to register vehicles on which taxes are delinquent.
Upon receiving the list of delinquent taxpayers sent by county tax collectors pursuant to G.S. 105-329.5, the Division shall refuse registration of vehicles appearing on the list until the vehicle owner presents the Division with a paid tax receipt identifying the vehicle in question."
Sec. 6.  G.S. 20-66(d) reads as rewritten:
	"(d) The Division may also provide for the issuance of license plates for motor vehicles with the dates of expiration thereof to vary from month to month so as to approximately equalize the number that expire during the registration year.  "
Sec. 7.  G.S. 105-312(h1) is repealed.
Sec. 8.  G.S. 105-312(l) reads as rewritten:
	"(l) The provisions of this section shall apply to all cities, towns, and other municipal corporations having the power to tax property. Such governmental units shall designate an appropriate municipal officer to exercise the powers and duties assigned by this section to the assessor, and  the powers and duties assigned to the board of county commissioners shall be exercised by the governing body of the unit. When the assessor discovers property having a taxable situs in a municipal corporation, he shall send a copy of the notice of discovery required  by subsection (d) to the governing body of the municipality together with such other information as may be necessary to enable the municipality to proceed. The governing board of a municipality may, by resolution, delegate the power to compromise, settle, or adjust tax claims granted by this subsection and by subsection (k) of this section to the county board of equalization and review, including any  board created by resolution pursuant to G.S. 105-322(a) and any special board established by local act."
Sec. 9.  This act does not affect the rights or liabilities of the State, a taxpayer, or other person arising under a statute amended or repealed by this act before its amendment or repeal; nor does it affect the right to any refund or credit of a tax that would otherwise have been available under the amended or repealed statute before its amendment or repeal.
Sec. 10.  This act shall become effective January 1, 1990, and shall first apply to the taxation of classified motor vehicles for the fiscal year beginning July 1, 1990.