GENERAL ASSEMBLY OF NORTH CAROLINA

SESSION 1995

H	1 

HOUSE BILL 139

Short Title:  Repeal Minimum Hwy. Use Tax.	(Public)

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Sponsors: Representatives R. Hunter; Hightower, Lee, Howard, Buchanan, Gamble, Luebke, and Weatherly.

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Referred to:  Finance.

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February 8, 1995

A BILL TO BE ENTITLED
AN ACT TO REPEAL THE MINIMUM HIGHWAY USE TAX.
The General Assembly of North Carolina enacts:
Section 1.  G.S. 105-187.3(a) reads as rewritten:
"(a)	Amount. – The rate of the use tax imposed by this Article is three percent (3%) of the retail value of a motor vehicle for which a certificate of title is issued.  The tax is payable as provided in G.S. 105-187.4.  The tax may not be more than one thousand dollars ($1,000) 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.  The tax may not be more than one thousand five hundred dollars ($1,500) for each certificate of title issued for any other motor vehicle."
Sec. 2.  G.S. 105-187.6(b) reads as rewritten:
"(b)	Partial Exemptions. – A maximum tax of forty dollars ($40.00) applies when a certificate of title is issued as the result of a transfer of a motor vehicle:
(1)	To a secured party who has a perfected security interest in the motor vehicle.
(2)	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. 55-11-06."
Sec. 3.  G.S. 105-187.7 reads as rewritten:
"§ 105-187.7.  Credit for tax paid in another state.
A person who, within 90 days before applying for a certificate of title for a motor vehicle on which the tax imposed by this Article is due, has paid a sales tax, an excise tax, or a tax substantially equivalent to the tax imposed by this Article on the vehicle to a taxing jurisdiction outside this State is entitled to a credit against the tax due under this Article for the amount of tax paid to the other jurisdiction.  "
Sec. 4.  G.S. 105-187.8 reads as rewritten:
"§ 105-187.8.  Refund for return of purchased motor vehicle.
When a purchaser of a motor vehicle returns the motor vehicle to the seller of the motor vehicle within 90 days after the purchase and receives a vehicle replacement for the returned vehicle or a refund of the price paid the seller, whether from the seller or the manufacturer of the vehicle, the purchaser may obtain a refund of the privilege tax paid on the certificate of title issued for the returned motor vehicle.
To obtain a refund, the purchaser must apply to the Division for a refund within 30 days after receiving the replacement vehicle or refund of the purchase price.  The application must be made on a form prescribed by the Commission and must be supported by documentation from the seller of the returned vehicle."
Sec. 5.  This act becomes effective October 1, 1995.