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North Carolina: Salvaged Vehicles Exempt from Highway Use Tax


 North Carolina: Is it worth salvaging this car for a highway use tax exemption?

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.

States constantly alter sales tax rates, rules, regulations and exemptions. Keeping track of all those sales tax changes can turn your hair grey. Automate, and keep your natural color.

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photo credit: "The Wanderer's Eye Photography" via photopin cc


Gail Cole
Avalara Author
Gail Cole
Gail Cole
Avalara Author Gail Cole
Gail began researching and writing about sales tax in 2012 and has been fascinated with it ever since. She has a penchant for uncovering unusual tax facts, and endeavors to make complex sales tax laws more digestible for both experts and laypeople.