Gap billing of property taxes occurs when there is a gap (one or more months) in billed property taxes between the expiration of a vehicle’s registration and the renewal of that registration or the issuance of a new registration. The vehicle is an unregistered vehicle during the gap in registration.
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The North Carolina General Assembly ratified House Bill 1779 to create a combined motor vehicle registration renewal and property tax collection system.
The legislation places the responsibility for motor vehicle property tax collection for the state’s 100 counties with the Division of Motor Vehicles (DMV). The new combined registration fee and tax collection has become the North Carolina new
The new system took effect with the September 2013 renewals.
Active duty, non-resident military personnel may be exempt from North Carolina motor vehicle property tax. To qualify for an exemption, you must present a copy of your Leave and Earnings Statement to the county tax office that lists your home of record for a state other than North Carolina. The statement should be for the month and year in which you registered the motor vehicle and must include your Estimated Time of Separation (ETS) date and home of record. If your home of record on your Leave and Earnings Statement is North Carolina, you must pay the vehicle property tax here.
There was a gap in the registration of your vehicle resulting in a gap in the taxes billed. The registration for your vehicle previously expired. The vehicle registration was recently renewed or a new registration was issued. During the gap in registration, the vehicle was unregistered. The County is required to collect property taxes for unregistered vehicles per North Carolina General Statute 105-330.3.
No. Property taxes paid to the North Carolina Department of Motor Vehicles (NCDMV) at the time of registration renewal or issuance are for the same 12-month period as your registration. The taxes billed on a gap property tax notice are only for the months your vehicle was not registered with the NCDMV.
A gap property tax notice will cover at least one month and can cover all months between registrations, without limitation.
Vehicle value is determined as of January 1 of the calendar year in which the gap property tax notice was computed.
Appeals of value, situs (location where taxed), and taxability must be filed with the tax office within thirty (30) days of the due date on this notice.
Taxes are due by the September 1 that follows the gap property tax notice date and can be paid without interest before the following January 6. Interest accrues for taxes paid on or after January 6 at 2% for the month of January and accrues at ¾ of 1% for each following month.
Taxes are delinquent if unpaid on January 6 that follows the September 1 due date. Delinquent taxes are subject to garnishment of wages and levy on personal property immediately upon becoming delinquent.