Frequently Asked Questions
Tax
Rate
Q: Sue Black, who resides in Davidson County,
renewed the registration on her car in April 2004.
Davidson County conducted a county-wide revaluation
in January 2004. In July 2004, the governing board
of Davidson County lowered the tax rate from the 2003-2004
rate of .99 per $100 valuation to .75 per $100 valuation
for the 2004-2005 fiscal year. In August 2004, Davidson
County mailed Sue’s bill for 2004 property taxes
on her car. Davidson County applied the .99 tax rate
to Sue’s car. The same month, Davidson County
mailed Sue’s bill for 2004 real property taxes.
Sue’s real property was assessed for taxes at
the .75 rate. Was it proper to use two different tax
rates for these bills, which were mailed in the same
month?
A: Yes. GS 105-330.5, which sets forth listing
and collecting procedures for registered motor vehicles,
states: "In computing the taxes, the assessor
shall appraise the motor vehicle in accordance with
GS 105-330.2 and shall use the tax rates of the
various taxing units in effect on the first day
of the month in which the current vehicle registration
expired or the new registration was applied for."
GS 105-330.5(a). As of April 1, 2004, the tax rate
in Davidson County was .99. The tax collector thus
billed the taxpayer correctly for motor vehicle
taxes.
The taxes on the car will be included in the tax
collector’s tax levy for 2004-2005 because
the taxes were due in August 2004, which is in the
2004-2005 fiscal year. See GS 105-330.5(d). The
inclusion of the registered motor vehicle taxes
in the 2004-2005 levy has no impact on the rate
at which the taxes are assessed.
The .75 rate is the appropriate rate for the 2004
real property taxes as this is the tax rate applicable
to taxes levied in 2004-2005, other than taxes on
registered motor vehicles, as referenced above.
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