A BILL TO BE ENTITLED
AN ACT to ensure volunteer fire departments are fully exempt from the highway use tax if they are EXEMPT from STATE income tax , employ no more than two paid employees, and are not part of a local government.
The General Assembly of North Carolina enacts:
SECTION 1.  G.S. 105‑187.6(9) reads as rewritten:
"§ 105‑187.6.  Exemptions from highway use tax.
(a)	Full Exemptions. – The tax imposed by this Article does not apply when a certificate of title is issued as the result of a transfer of a motor vehicle:
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(9)	To a volunteer fire department or volunteer rescue squad that is not part of a unit of local government, has no more than two paid employees, and is exempt from State income tax under G.S. 105‑130.11, when the motor vehicle is one of the following:
a.	A fire truck, a pump truck, a tanker truck, or a ladder truck used to suppress fire.
b.	A four‑wheel drive vehicle intended to be mounted with a water tank and hose and used for forest fire fighting.
c.	An emergency services vehicle.
This subdivision shall apply to a volunteer fire department or volunteer rescue squad that is housed in a building or structure provided by a unit of government, whether rent is charged or not.
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SECTION 2.  This act becomes effective January 1, 2007.