Vehicle Gap Property Tax FAQ
Q: WHAT IS GAP BILLING OF PROPERTY TAXES FOR UNREGISTERED VEHICLES?
A: Gap billing of property taxes occurs when there are one or more months (a gap) in billed property taxes between the expiration of a vehicle’s registration and the renewal of that registration or the issuance of a new registration. The vehicle is an unregistered vehicle during the gap in registration.
Q: WHY DID I RECEIVE A GAP PROPERTY TAX NOTICE?
A: There was a gap in the registration of your vehicle resulting in a gap in the taxes billed. The registration for your vehicle previously expired. The vehicle registration was recently renewed, or a new registration was issued. During the gap in registration, the vehicle was unregistered. The county is required to collect property taxes for unregistered vehicles per North Carolina General Statute 105-330.3.
Q: DOES THE PROPERTY TAX I PAID WHEN I RENEWED MY REGISTRATION APPLY TO THE GAP BILLING PERIOD?
A: No. Property taxes paid to the North Carolina Department of Motor Vehicles (NCDMV) at the time of registration renewal or issuance are for the same 12-month period as your registration. The Taxes billed on a gap property tax notice are only for the months your vehicle was not registered with the NCDMV.
Q: HOW MANY MONTHS CAN A GAP PROPERTY TAX NOTICE COVER?
A: A gap property tax notice will cover at least one month and can cover all months between registrations, without limitation.
Q: WHEN IS MY VEHICLE VALUE DETERMINED?
A: Vehicle value is determined as of January 1 of the calendar year in which the gap property tax notice was computed.
Q: HOW CAN I APPEAL?
A: Pursuant to NCGS 105-317.1, appeals of value, situs (location where taxed), and taxability must be filed with the tax office within thirty (30) days of the Billing Date located on the notice.
Q: WHEN ARE THE TAXES DUE AND WHEN DOES INTEREST START?
A: Taxes are due by the Due Date printed on the bill. Bills become delinquent the January 6th immediately following the Due Date. Interest accrues for taxes paid on or after the delinquent date (interest begins date) at 2% for month of January and accrues at ¾ of 1% for each following month.
Q: WHAT IF I DO NOT PAY?
A: Delinquent taxes are subject to garnishment of wages, attachment of accounts and levy on personal property.