North Carolina: Salvaged Vehicles Exempt from Highway Use Tax
- Aug 28, 2013 | Gail Cole
Governor Pat McCrory (R) recently signed into law legislation that provides an exemption from the highway use tax for salvaged vehicles in North Carolina.
NC HB 727 describes in detail procedures for transferring the title of a salvaged vehicle. It makes for good reading if you're in the business of salvaging vehicles. Folks more interested in the tax implications of resurrecting an automobile need know only this:
"The tax imposed by this Article does not apply when a certificate of title is issued as the result of a transfer of a motor vehicle to 1) the insurer of the motor vehicle… because the vehicle is a salvage vehicle or 2) a used motor vehicle dealer … because the vehicle is a salvage vehicle that was abandoned."
The act takes effect on October 1, 2013.
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photo credit: "The Wanderer's Eye Photography" via photopin cc
