Vehicle Taxes (sales, leasing, vehicle registration)

[pjb3589]

Hi all,

I recently moved to the Triangle from Ohio, and I love it down here so far. I'm currently leasing my vehicle, and when I changed the address on my lease, my lease payment went up. I was told this was because North Carolina charges a some yearly tax on vehicles which the leasing company is simply passing on to me. However, I already paid sales taxes on my vehicle in Ohio when I signed the lease. The leasing company was less than helpful when I asked them about it and simply said that I would need to work it out with both states. Has anyone run into this situation before, and if so, were they able to work something out?

This is kind of frustrating considering I'm basically being taxed twice.

Thanks!

[MikeJaquish]

WakeGOV.com - Vehicle Taxes

WakeGOV.com - Appealing Tax Values

[MammaLakn]

We've been through it and Im sorry to say but you're on the hook for it.

When you register an out of state vehicle in NC you must pay highway use tax which is capped at $150 per vehicle. Instead your leasing company might elect to pay an alternate 3% gross receipt tax which will be added to your monthly lease payment.

North Carolina General Statutes § 105-187.5 Alternate tax for those who rent or lease motor vehicles - North Carolina Attorney Resources - North Carolina Laws

On top of that you have to pay personal property/excise tax on your vehicle one a year (first link Mike posted).

NC taxes are insane. Believe it or not but we pay more tax in NC than we did in MA

[convergent]

This is no different than us buying a car in NY, paying the full sales tax, and then moving to NC where you pay property tax each year. Its the law. You have to pay it. Its really not a big deal. I think my vehicle registration in NY was more than the registration + tax in NC combined. But, then I have older cars that the tax is pretty minimal. I suppose if you drive around in brand new expensive cars then you will be paying more.