NC has no auto "sales tax" ??

[FEDUKE404]

Transferred from another thread...

So, can you add the highway use tax paid for a vehicle purchased in the state of North Carolina to the sales tax tables (old rules) or take it outright (post 02/16/2009 rules) ???

The IRS rules say amount of sales tax paid on a motor vehicle can be added to the Sch A, line 5b table amounts. The newest 2009 rules for the stand-alone deduction, similar to that for the first $1k of real property taxes, refer to "sales and excise taxes."

Per folks in NC, it is NOT a sales tax. From NC DOT website:

Highway Use Tax (HUT)
North Carolina collects a 3% Highway Use Tax on vehicles in lieu of a state sales tax (General Statute 105-187.2). The tax is assessed each time a title is transferred. The maximum tax for commercial vehicles (vehicles with a weight greater than 26,000 pounds) is $1,000.00. All other vehicles are charged 3% with no ceiling.

For some reason, I might consider a career change before tax season arrives in 2010!

FE

[Burke]

My state charges a 3% tax to the buyer on every vehicle when it is sold to another entity, too. And it is called a sales tax. Is there some reason for this distinction of "highway use tax" in NC? If it smells like a rose.......

[FEDUKE404]

NC politicians at work, apparently

My state charges a 3% tax to the buyer on every vehicle when it is sold to another entity, too. And it is called a sales tax. Is there some reason for this distinction of "highway use tax" in NC? If it smells like a rose.......

I wish I knew.......

§ 105‑187.2. Highway use tax imposed.

A tax is imposed on the privilege of using the highways of this State. This tax is in addition to all other taxes and fees imposed. (1989, c. 692, s. 4.1.)

FE

[Burke]

I wish I knew.......

§ 105‑187.2. Highway use tax imposed.
A tax is imposed on the privilege of using the highways of this State. This tax is in addition to all other taxes and fees imposed. (1989, c. 692, s. 4.1.)
FE

Oh, dear. So whom do I contact to pay this use tax when I drive thru NC?

[JohnH]

I'll send you a PM with my address - you can send the check to me.
Same for anyone else intending to drive through NC.
Glad to be of service.

[Snaggletooth]

Sales Tax

Sorry guys. If a client buys a car in NC and pays this mystic tax, I intend to deduct it as sales tax. They can call it whatever they want. If it is 3%, and based on the selling price of the car, it is a sales tax.

A privelege tax is more akin to a toll road than a percentage surcharge based on sales.

NC politicians need to get with the program. They could learn a lot from Tennessee politicians, all of whom are upstanding, free-from-corruption, and forthright with their constituents. When our state constitution forbids a certain tax, we impose it anyway and call it something else. This might be what has happened over in the Tar Heel statehouse.

[JohnH]

Just for the record, we have some of the best politicians money can buy. If you don't believe it, just ask the lobbyists in Raleigh.

[FEDUKE404]

NC pols

Just for the record, we have some of the best politicians money can buy. If you don't believe it, just ask the lobbyists in Raleigh.

Well, a few of them are currently on extended vacations in the Federal "big house."

FE

[S T]

Sales Tax Vs Highway Tax

After living in California and paying 7.75% - 8.25% sales tax on vehicles, even though I might have received a sales tax deduction,

and moving to NC and only paying 3% as a Highway Tax on a purchase of a vehicle,

it would seem that I am paying a lot less "net" tax in NC!

And if truly the 3% Highway Tax is going to build,improve and maintain the Highways in NC, I am all for that.

The sales tax collected in California, definitley never are passed through to build,improve or maintain the highways in California.

Sandy