Highway Tax Sales Tax on Leased Vehicle (leasing, property tax)

[MammaLakn]

Anyone registered an out of state leased vehicle in NC?

We registered ours in December. Weve been expecting a bill for the highway tax, but it turns out that Honda applied for an exemption and opted to pay alternate tax.

§ 105‑187.5. Alternate tax for those who rent or lease motor vehicles.
(a) Election. – A retailer may elect not to pay the tax imposed by this Article at the rate set in G.S. 105‑187.3 when applying for a certificate of title for a motor vehicle purchased by the retailer for lease or rental. A retailer who makes this election shall pay a tax on the gross receipts of the lease or rental of the vehicle. Like the tax imposed by G.S. 105‑187.3, this alternate tax is a tax on the privilege of using the highways of this State. The tax is imposed on a retailer, but is to be added to the lease or rental price of a motor vehicle and thereby be paid by the person who leases or rents the vehicle.

We are paying 3% tax per month based on our lease amnt, so I believe the above stament applies in our case.

Weve had so many problems with Honda. They paid property tax to our previous state. Our NC bill was due the 1st, yet they say they havent received it. In fact they claim they havent received any of the registration info etc. I sent them. I was actually told to rather fax info than snail mail it bec they cant guarentee that info received via snail mail will make it in to their system.

I just want to make sure I have this sorted out. Did anyone else's leasing company go this route? Thanks.