Nc use tax (for sale, credit, home)

[joshlw]

Okay over 4 years ago I stopped on a trip home from SC and bought a 4 wheeler. Chose to go a head apay sales tax wit the understanding that it would credit to NC. Dealer assured me nothing had to be done. Well 4 years later I get a letter from NC rev.service saying I owe 900.00 in taxes and penalties. WTF They are saying i paid more than I did and the dtes aren't even right on the purchase date. I have all my paper work where I paid taxes. What foot do I have to stand on and can i fight this?

[adlnc07]

You should be able to dispute it - did you pay SC or NC tax when you bought it? If you buy something in another state and pay sales tax, you shouldn't owe NC use tax on top of what you already paid in SC.

[mm34b]

By "4-wheeler", do you mean a DMV tagged truck or ATV?

[saturnfan]

Any tax paid where you bought it should be credited against any tax you may owe in NC.

[mm34b]

Out-of-state purchases by NC residents - Use Tax

Frequently Asked Questions About Use Tax - http://www.dor.state.nc.us/faq/use.html

[adlnc07]

Originally Posted by mm34b

Out-of-state purchases by NC residents - Use Tax

Frequently Asked Questions About Use Tax - Frequently Asked Questions - Use Tax

This is the part that's applicable to the OP:

If I make purchases of tangible personal property while in another state, do I owe North Carolina use tax on these purchases? If the items are purchased for storage, use, or consumption in North Carolina, they are subject to the North Carolina use tax whether the purchases are delivered to you in another state or shipped to you in North Carolina. If you paid another state's sales or use tax on the out-of-state purchases, that amount may be credited against the North Carolina use tax due. You may not claim a credit for sales tax or value-added tax paid to another country.

It looks like the SC sales tax is 5-6%, compared with 6.75% for Wake County. So, if you paid SC sales tax on the ORV, then you would owe .75%-1.75% to NC. I would just contact NC and work it out - I'm sure there was a phone number on the notice you received. I recommend being very polite in dealing with them - explain what the dealer told you, offer to fax your paperwork, etc.

And to correct my earlier post - I guess technically you do owe the difference, but you should not get hit up with the full 6.75% for NC tax without taking into account whatever tax you did pay when you bought it.

The SC dealer you purchased from must be pretty close to the NC state line. I've heard of states going after furniture stores for lists of customers, but ATV's is a new one to me!

[joshlw]

Just talked to a friend of a friend with the rev service and he is going to get it worked out for me. He says they just installed a new system and it is back tracking this type of thing. So internet shoppers be aware that NC wants its tax. thanks so much for the replies