“Tax & Tag Together” Dealer Information
Effective July 1, 2013, when a vehicle is sold, the property tax will be collected along with the other fees to title the vehicle. So the owner will pay the title fee, highway use tax, registration plate fee and property tax to the DMV. Also property taxes will begin showing on plate renewals in mid-2013.
The NCDOT website has a “Business Partner Resources” link where you can view and print “Approved Dealer Educational Courses”, “Dealer License Minimum Requirements”, “NC Title Manual”, “NC Dealer Manual” and a “Dealer Tax & Tag Together” information sheet containing questions and answers which will be updated periodically. https://connect.ncdot.gov/business/DMV/Pages/Car-Dealers.aspx
The NCDOT website also has a link for the new “Tax & Tag Together” program containing general details. http://www.ncdot.gov/dmv/vehicle/tagtax/
Are property taxes due on a newly purchased vehicle when it is titled? Yes, beginning 7/1/13, the vehicle owner will pay the vehicle property taxes at the time the title work is done. However, if the owner chooses not to pay the taxes at that time, the owner can receive a Limited Registration and Property Tax Notice stating the amount of the vehicle property taxes due. The owner will receive a limited registration sticker, issued by the license plate agency, that will expire after 60 days if the vehicle’s property taxes are not paid in full.
How will I know how much property tax to charge? There will be a website the dealer will use to calculate the property tax or call (919) 814-1779 for assistance. There will be more to come about the website as it is made available.
If a plate is to be transferred from another vehicle, will the property taxes be due? No, the taxes will be due on the next renewal date for that plate.
Can a dealer charge an extra fee to collect the tax? No, but dealers can still continue to charge administrative or doc fees, which must be disclosed under current regulations already in place.
Will dealers issue the (60 day) limited registration sticker? No, it will be issued by the license plate agency when the title work is done and the metal plate is issued unless the dealer is an on-line dealer doing their own title work and they will have the limited registration stickers.
Where will the customer pay the tax (after the sale) if they received the plate with the limited registration sticker? The license plate agency, on-line or by mail and a year sticker will be issued to replace the limited registration sticker on the plate already issued.
Who should I contact if I have questions? If you have DMV-related questions about the Tag & Tax Together program, please call (919) 814-1779.