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Highway Use tax (HUT) is 3% of the sales price of the car. If you do a trade-in, then that amount is subtracted from the sales price. If you buy used, then it's based on the value of the car.
So if you paid $142 in taxes, then the net purchase should have been around $4733.33 (Maybe a $14.7k car with a $10k trade in, or maybe a $4733 car and no trade in...)
Anyway, whatever they call it, the effective sales tax for a car in NC is 3% of net purchase amount.
According to this formula, OP's car was valued at $5k, and the rest was tax and tags. They will get a bill for Property tax later.
DH's car was valued at just over $20K, today he paid:
$150 highway use tax
$196 property tax fee
$28 plate fee
$38 title transfer fee
When one seeks the attainment of nirvana in paradise, one tends to disregard contrary information that injects reality into the fantasy.
I have a list of websites that explain all the fees in NC, including that YES, we have income tax!
I think I googled a few websites and came up with the list so anyone can find it.
But...you gotta WANT TO FIND IT!!!
Having said that, I don't think anyone would really want that type of "surprise" so I think it is something that was missed. And that is also something that I've heard others say they missed, as well. Life happens!
not sure how you arrived at that conclusion. we have 2 cars, neither is worth anywhere close to 40K
You said you paid 415 PLUS the 150 (one-time) HUT. That HUT is something we pay when we buy cars, so nobody much notices it.
Taxes in Cary for 415 a year would be on a car worth over 40k. Consult that calculator that was posted here if you want to doublecheck the math.
Was that 415 including the HUT? If so, that's less we pay per car yearly for taxes, and we have 3 cars paying at that rate.
It gets cheaper every year as the value of your car goes down, and as others have mentioned, we don't pay tax here all at one time when we buy. I think that system is kinder to people on a budget, really.
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I have a list of websites that explain all the fees in NC, including that YES, we have income tax!
I think I googled a few websites and came up with the list so anyone can find it.
But...you gotta WANT TO FIND IT!!!
Having said that, I don't think anyone would really want that type of "surprise" so I think it is something that was missed. And that is also something that I've heard others say they missed, as well. Life happens!
I think a ton of people miss it in the rush for cheap real estate and lower RE taxes... which might explain all the expired out-of-state tags from people who learned it later and got ticked off and refuse to pay it for as long as they can.
I appreciate that the OP paid her taxes, even if she's not thrilled at the cost.
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Please check this number. I bought a used car early this month, a car valued at $9,130, and paid $246 HUT. These numbers are not from memory, I'm looking at the receipt right now. If you are correct, I was overcharged!
Please check this number. I bought a used car early this month, a car valued at $9,130, and paid $246 HUT. These numbers are not from memory, I'm looking at the receipt right now. If you are correct, I was overcharged!
.
246 HUT for a car worth less than 10k?
Ack.
I swear I think mine was 150 for the car I just bought for close to 40k.
Seriously. That's wild. How do they come up with the HUT? I've never asked because it's not much money.
__________________
When in doubt, check it out: FAQ
You said you paid 415 PLUS the 150 (one-time) HUT. That HUT is something we pay when we buy cars, so nobody much notices it.
Taxes in Cary for 415 a year would be on a car worth over 40k. Consult that calculator that was posted here if you want to doublecheck the math.
Was that 415 including the HUT? If so, that's less we pay per car yearly for taxes, and we have 3 cars paying at that rate.
It gets cheaper every year as the value of your car goes down, and as others have mentioned, we don't pay tax here all at one time when we buy. I think that system is kinder to people on a budget, really.
I said $415, which included $150 one time hwy use tax. sorry if that wasn't clear.
I said $415, which included $150 one time hwy use tax. sorry if that wasn't clear.
Yeah... I figured it out from your other post. At least you got one of them out of the way. It really isn't bad when it's yearly.
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When in doubt, check it out: FAQ
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