A BILL TO BE ENTITLED
AN ACT to authorize the town of Matthews to use the proceeds in excess of five dollars, from the motor vehicle tax assessed pursuant to G.S. 20‑97, for transportation‑related purposes only.
The General Assembly of North Carolina enacts:
SECTION 1.  G.S. 20‑97(a), as applicable to the Town of Matthews under S.L. 1985‑1009, S.L. 1991‑ 209, and S.L. 1993‑345, reads as rewritten:
"(a)	All taxes levied under the provisions of this Article are intended as compensatory taxes for the use and privileges of the public highways of this State, and shall be paid by the Commissioner to the State Treasurer, to be credited by him to the State Highway Fund; and no county or municipality shall levy any license or privilege tax upon any motor vehicle licensed by the State of North Carolina, except that cities and towns other than the City of Durham may levy not more than thirty dollars ($30.00) per year upon any vehicle resident therein, and except that the City of Durham may levy not more than one dollar ($1.00) per year upon any vehicle resident therein. Provided, further, that cities and towns may levy, in addition to the amounts hereinabove provided for, a sum not to exceed fifteen dollars ($15.00) per year upon each vehicle operated in such city or town as a taxicab. Provided, further that any tax levied in excess of twenty dollars ($20.00) per year per vehicle by the City of Charlotte shall be dedicated to and may be expended only for public mass transit systems and mass transit‑related activities."
SECTION 2.  G.S. 20‑97(b) reads as rewritten:
"§ 20‑97.  Taxes credited to Highway Fund; municipal vehicle taxes.
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(b)	General Municipal Vehicle Tax. – Cities and towns may levy a tax of not more than thirty dollars ($30.00) per year upon any vehicle resident in the city or town. The proceeds of the tax up to five dollars ($5.00) may be used for road repair and improvements. The proceeds of these taxes derived from any levy above five dollars ($5.00) and up to thirty dollars ($30.00) shall be used exclusively for public mass transit systems and mass transit‑related activities.
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SECTION 3.  This act applies to the Town of Matthews only.
SECTION 4.  This act is effective for taxes imposed for taxable years beginning on or after July 1, 2007.