A BILL TO BE ENTITLED
AN ACT to adjust the highway use tax for new motor vehicles based on the miles-per-gallon rating for the new motor vehicle to be taxed.
The General Assembly of North Carolina enacts:
SECTION 1.  G.S. 105‑187.3 reads as rewritten:
"§ 105‑187.3.  Rate of tax.
(a)	Used Passenger Vehicle Amount. – The rate of the use tax imposed by this Article is three percent (3%) of the retail value of a used passenger motor vehicle for which a certificate of title is issued. The tax is payable as provided in G.S. 105‑187.4. The maximum tax is 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 maximum tax is one thousand five hundred dollars ($1,500) for each certificate of title issued for a recreational vehicle that is not subject to the one thousand dollar ($1,000) maximum tax.
(a1)	New Passenger Vehicle Amount. – The rate of the use tax imposed by this Article is a variable rate that is assessed based upon the miles-per-gallon rating for the new passenger motor vehicle, as defined in G.S. 20‑4.01(27), as established in the Corporate Average Fuel Economy (CAFE) standards and administered by the Environmental Protection Agency and the National Highway Traffic Safety Administration. A new passenger motor vehicle that is rated to get 1 to 19.9 miles per gallon shall be assessed at a rate of four percent (4%) of the retail value of the new motor vehicle for which a certificate of title is issued. A new motor vehicle that is rated to get 20 to 31.9 miles per gallon shall be assessed at a rate of three percent (3%) of the retail value of the new motor vehicle for which a certificate of title is issued. A new motor vehicle that is rated to get 32 or more miles per gallon shall be assessed at a rate of two percent (2%) of the retail value of a new motor vehicle for which a certificate of title is issued. The tax is payable as provided in G.S. 105‑187.4. There shall be no appeal from the miles-per-gallon rating assigned to the vehicle under the CAFE standards for any reason. This subsection shall not apply to Class A or Class B motor vehicles. Class A and Class B motor vehicles shall continue to be taxed under the provisions of subsection (a) of this section. 
(b)	Retail Value. – The retail value of a motor vehicle for which a certificate of title is issued because of a sale of the motor vehicle by a retailer is the sales price of the motor vehicle, including all accessories attached to the vehicle when it is delivered to the purchaser, less the amount of any allowance given by the retailer for a motor vehicle taken in trade as a full or partial payment for the purchased motor vehicle. The retail value of a motor vehicle for which a certificate of title is issued because of a sale of the motor vehicle by a seller who is not a retailer is the market value of the vehicle, less the amount of any allowance given by the seller for a motor vehicle taken in trade as a full or partial payment for the purchased motor vehicle. A transaction in which two parties exchange motor vehicles is considered a sale regardless of whether either party gives additional consideration as part of the transaction. The retail value of a motor vehicle for which a certificate of title is issued because of a reason other than the sale of the motor vehicle is the market value of the vehicle. The market value of a vehicle is presumed to be the value of the vehicle set in a schedule of values adopted by the Commissioner.
(c)	Schedules. – In adopting a schedule of values for motor vehicles, the Commissioner shall adopt a schedule whose values do not exceed the wholesale values of motor vehicles as published in a recognized automotive reference manual."
SECTION 2.  This act becomes effective July 1, 2009.