GENERAL ASSEMBLY OF NORTH CAROLINA
1991 SESSION

CHAPTER 79
HOUSE BILL 9

AN ACT TO REINSTATE SALES TAX ON MOPEDS, TOW DOLLIES, AND CERTAIN VEHICLE BODIES AND TO ESTABLISH A UNIFORM LONG-TERM LEASING RATE.

The General Assembly of North Carolina enacts:

Section 1.  G.S. 105-164.3(8b) reads as rewritten:
"(8b)	'Motor vehicle' means a vehicle that is designed primarily for use upon the highways and is either self-propelled or propelled by a self-propelled vehicle, but does not include:
a.	A moped as defined in G.S. 20-4.01(27)(d1).
b.	Special mobile equipment as defined in G.S. 20-4.01(44).
c.	A tow dolly that is exempt from motor vehicle title and registration requirements under G.S. 20-51(10) or (11).
d.	A farm tractor or other implement of husbandry.
e.	A manufactured home.
f.	Road construction or road maintenance machinery or equipment."
Sec. 2.  G.S. 105-164.13(32) reads as rewritten:
"(32)	Sales of motor vehicles, the sale of a motor vehicle body to be mounted on a motor vehicle chassis when a certificate of title has not been issued for the chassis, and the sale of a motor vehicle body mounted on a motor vehicle chassis that temporarily enters the State so the manufacturer of the body can mount the body on the chassis. "
Sec. 3.  G.S. 105-164.3(7a) reads as rewritten:
"(7a)	'Lease or rental' means a transfer, for consideration, of the use but not the ownership of property to another for a period of time."
Sec. 4.  G.S. 105-187.1 reads as rewritten:
"§ 105-187.1.  Definitions.
The following definitions and the definitions in G.S. 105-164.3 apply to this Article:
(1)	'Commissioner' means the Commissioner of Motor Vehicles.
(2)	'Division' means the Division of Motor Vehicles, Department of Transportation.
(3)	' Long-term lease or rental' means a lease or rental made under a written agreement to lease or rent property to the same person for a period of at least 365 continuous days.
(4)	' Short-term lease or rental' means a lease or rental that is not a long-term lease or rental."
Sec. 5.  G.S. 105-187.5(b) reads as rewritten:
"(b)	Rate.  The tax rate on the gross receipts from the short-term lease or rental of a motor vehicle is eight percent (8%) and the tax rate on the gross receipts from the long-term lease or rental of a motor vehicle is three percent (3%).  The maximum tax in G.S. 105-187.3(a) applies to a continuous lease or rental of a motor vehicle to the same person.."
Sec. 6.  This act becomes effective July 1, 1991.
In the General Assembly read three times and ratified this the 8th day of May, 1991.

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James C. Gardner
President of the Senate

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Daniel Blue, Jr.
Speaker of the House of Representatives