DURHAM, N.C. – On September 1, 2013 House Bill 1779, also known as Tax and Tag Together, went into effect. This new legislation changed the way that counties bill taxes on registered motor vehicles in North Carolina. Previously, taxpayers would renew their registration with the DMV and then receive a bill for the same registration period from the Tax Administration four months later. Now, taxpayers are responsible for paying their tax bill at the same time that they renew the registration on their vehicle. 


This change was meant to make the renewal process more convenient for the taxpayer by allowing them to renew their tags and pay their taxes at the same time. As Durham County Tax Administrator Kimberly Simpson stated, “The Tax and Tag Program was implemented to ensure that our citizens have the opportunity to renew their tag and pay their taxes at the same time. It also represents an initiative by state and local governments to become more efficient.  Sending multiple notices to the same individuals is not cost effective to the citizens of our state. However, with any new program there is a transition period and our citizens still need to be educated on the changes in the law so they do not find themselves in a situation where they are not in compliance with the law. “


The change to the law includes having to pay motor vehicle taxes at the time of registration instead of afterwards. This makes the collection of taxes more efficient, but failure to understand or comply with this change can lead to unwanted consequences for the taxpayer. Taxpayers should be aware that if they do not pay their taxes and renew their tags they may be subject to penalties imposed by law enforcement for not having current tags on their vehicle.


Aside from the new billing structure, the motor vehicle taxation process remains the same. Despite recent warnings in the media, the tax office has not begun to overvalue vehicles in order to increase tax revenue. Per G.S. 105-283 and 105-330, all property shall be assessed at its true value, which the law equates with market value. This is the value the vehicle would sell for on the open market, sometimes referred to as “retail value”. These statutes explicitly prohibit the use of “book values” such as the trade-in value, or private sale value to determine the assessed value of the property. 


Taxpayers do have the right to appeal the assessed value of their vehicle if they believe it does not reflect the “true value” of the vehicle. This must be done in a timely manner, within 30 days of the due date, and must show that the assessed value does not reflect the true value as described by the General Statutes. Personnel at the Tax office are available to help taxpayers with this process in person or on the County information line at 919-560-0300.