Laserfiche WebLink
property tax and should be billed. Other types of personal property owned by leasing and rental <br />companies are still taxable as business personal property. <br /> <br />There may be some classified motofvehicles which were not required to be listed in January but <br />were billed offthe DMV tape under G.S.105-330. Any classified vehicles which were held for <br />short-term lease or rental and whose renewal date or expiration date was in the months of <br />January through May 2000 should have been billed and collected. Starting with the June <br />renewals any classified motor Vehicle which is held for short-te~m lease or rental is exempt and <br />should not billed offthe DMV tape. <br /> <br />How do we identify, the exempt vehicles on the DMV's tape? <br /> <br />The only vehicles for which the DMV has a code which can be used to exclude vehicles from <br />property tax billing are the u-drive-it passenger vehicles. These vehicles can be identified using <br />the UDRP code (u-drive-it cars) and the UDRT code (u-drive-it pickup tracks, vans and SUV's). <br />The other trucks and trailers which are owned by companies like U-hual, Ryder, and Penske can <br />not be identified as short-total rentals or leases by the use of a code. U-haul has only short-te,n <br />rental vehicles so these can be excluded based on the ownership name. Any vehicle which is <br />owned by a rental or leasing company should be billed for property taxes unless it can be <br />determined that the vehicle is held only for short-term rental or lease. <br /> <br />What is the tax on gross receipts? <br /> <br />SB 1076 allows the counties and municipalities in the state to levy a 1.5% tax on the gross <br />receipts from the rental or leasing of motor vehicles held for short-term lease or rental. This tax <br />mirrors the 8% state tax on the gross receipts of many of the same vehicles which now are <br />exempted from property tax under this new law. Each county and municipality is responsible for <br />collecting this tax from the retail locations where the lessee takes delivery of the motor vehicle. <br />The gross receipts of a vehicle leased or rented from a location inside a town or city would be <br />subject.to a 3% total tax. There would be a 1.5% tax collected for the county and a 1.5% tax <br />collected for the town. The counties may collect th/s tax for the municipalities by entering into a <br />collection agreement. If a municipality desires to have its tax administered by the county, it must <br />enter into a contract with the county for such administration. This is probably true even for cities <br />that currently have contracts with the county for collection of the property tax, because in most <br />instances those contracts cover only the collection of property taxes, not the administration of <br />other types of taxes. Gross receipt would be all the moneys received on the rental or lease of a <br />motor vehicle but does not include other taxes. <br /> <br />Does a taxing unit'have to implement the tax on gross receipts? <br /> <br />No, the tax on gross receipt is optional but the exemption of short-term rental or leased vehicles <br />is ,not. The tax on the gross rece£pts is designed to replace the revenue that will be lost by the <br />local governments from the property tax exemption of the short-term rental Or leased vehicles. <br />We strongly recommend that every taxing unit pass the required ordinance and implement this <br />tax. Once the process has been put into place the collection of this tax should be only a matter of <br /> <br /> -2- <br /> <br /> <br />