GENERAL ASSEMBLY OF NORTH CAROLINA

SESSION 1995

H	2 

HOUSE BILL 504
Committee Substitute Favorable 5/23/95

Short Title:  Leased Vehicle Trade-In Allowance.	(Public)

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Sponsors:

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Referred to:  

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March 20, 1995

A BILL TO BE ENTITLED
AN ACT TO SUBTRACT ANY TRADE-IN ALLOWANCE IN CALCULATING THE ALTERNATIVE HIGHWAY USE TAX ON LEASED VEHICLES.
The General Assembly of North Carolina enacts:
Section 1.  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%).  Gross receipts does not include the amount of any allowance given for a motor vehicle taken in trade as a partial payment on the lease or rental price.  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. 2.  This act becomes effective October 1, 1995, and applies to certificates of title issued on or after that date.