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North Carolina is changing the way vehicle taxes are billed and collected.
Currently, when registering a vehicle with the NC Division of Motor Vehicles, the vehicle is inspected, and the state renewal fee is paid upfront. Then, a bill comes from the county about three months later.
Beginning in mid-2013, the State will collect vehicle tax at the same time vehicle owners renew their license tag.
It's called "Tag & Tax Together" and it means annual registration fees and vehicle property taxes will be paid to the NCDMV either in person at a local tag office, online at the NCDMV website, or by mail.
The new system will be phased-in with the vehicle registration renewals that are due in mid-2013.
By mid-2014, all North Carolina vehicles that are registered with the DMV will be incorporated into the methodology for billing and collecting local vehicle taxes.
During the change, there will be an overlap resulting in some vehicle owners receiving a tax bill from the County and then one from the State fewer than 12-months later on the same vehicle.
This overlap will occur because vehicle owners will be paying taxes in advance rather than in arrears.
The State will disburse taxes collected to the County, which will then disburse the appropriation portion to municipalities.
Annual inspection fees are still paid to the inspection station. Vehicle owners will not be able to renew their motor vehicle's registration unless the total taxes and registration fees on the vehicle are paid at the same time.