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New Tag and Tax Program Means Combining Vehicle Fees

RALEIGH, N.C. : January 4, 2013 - The North Carolina Division of Motor Vehicles is working with county revenue offices across the state to educate vehicle owners to a new legislative program that will require the payment of vehicle property taxes at the same time vehicle registration renewals are due. The new “Tag & Tax Together” program is the result of a law passed in 2005 by the General Assembly that makes vehicle property taxes due in full before a vehicle’s registration can be renewed. To help vehicle owners with the new requirement, NCDMV is posting a special web page offering information about the program, which is set to begin with new combined tag and tax notices mailed in mid-2013.
The web page is located at
“We hope it will help explain the new program and provide citizens with answers to any questions they may have about how it works,” said DMV Commissioner Eric Boyette. “The division is working with all 100 county revenue offices to make this new web page available.”
The page features frequently asked questions and contact information for each county revenue office. New features will be added in coming months, such as a description of “How to Read Your Combined Vehicle Tag and Tax Notice” and a link to a county vehicle tax calculator, where specific county taxes can be computed for individual vehicles.
The new combined payment program has required the coordinated effort of county revenue offices, the state Department of Revenue, and the NCDMV. When it goes into effect, the total combined payment will be payable to NCDMV when annual vehicle registration is due. Citizens who have questions about their vehicle taxes should continue to contact their county revenue office. Fees for renewing vehicle registrations will remain the same.
In addition to the special page, NCDMV also offers a variety of online services on its website, as well as the North Carolina Driver’s Handbook and other information.
The North Carolina General Assembly passed House Bill 1779, creating what we call the Tag and Tax Together program – a more streamlined method for vehicle owners to pay their registration and vehicle taxes. Beginning in 2013, annual registration fees and vehicle property taxes will be paid to the Division of Motor Vehicles. In turn, the DMV will distribute the taxes to the appropriate counties.
Prior to this change, vehicle registration fees and vehicle property taxes have been billed and paid separately. Each county has been responsible for managing vehicle tax collections, while DMV collects registration fees.
In mid-2013, DMV will begin sending out registration renewal notices that invoice the vehicle tax due along with the registration fee. The fees are listed separately, but will be due at the same time. The total amount due on the combined statement will be payable to NCDMV. As before, you can pay online, through the mail or in person at a license plate agency near you.
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 will be incorporated into the system.
Source: North Carolina Department of Transportation.