§ 105-187.6. Exemptions from highway use tax. - North Carolina Statutes

§ 105‑187.6.  Exemptionsfrom highway use tax.

(a)        Full Exemptions. – Thetax imposed by this Article does not apply when a certificate of title isissued as the result of a transfer of a motor vehicle:

(1)        To the insurer ofthe motor vehicle under G.S. 20‑109.1 because the vehicle is a salvagevehicle.

(2)        To either amanufacturer, as defined in G.S. 20‑286, or a motor vehicle retailer forthe purpose of resale.

(3)        To the same owner toreflect a change or correction in the owner's name.

(3a)      To one or more of thesame co‑owners to reflect the removal of one or more other co‑owners,when there is no consideration for the transfer.

(4)        By will orintestacy.

(5)        By a gift between ahusband and wife, a parent and child, or a stepparent and a stepchild.

(6)        By a distribution ofmarital or divisible property incident to a marital separation or divorce.

(7)        Repealed by SessionLaws 2009‑445, s. 16, effective August 7, 2009.

(8)        To a local board ofeducation for use in the driver education program of a public school when themotor vehicle is transferred:

a.         By a retailer and isto be transferred back to the retailer within 300 days after the transfer tothe local board.

b.         By a local board ofeducation.

(9)        To a volunteer firedepartment or volunteer rescue squad that is not part of a unit of localgovernment, has no more than two paid employees, and is exempt from Stateincome tax under G.S. 105‑130.11, when the motor vehicle is one of thefollowing:

a.         A fire truck, a pumptruck, a tanker truck, or a ladder truck used to suppress fire.

b.         A four‑wheeldrive vehicle intended to be mounted with a water tank and hose and used forforest fire fighting.

c.         An emergencyservices vehicle.

(10)      To a State agencyfrom a unit of local government, volunteer fire department, or volunteer rescuesquad to enable the State agency to transfer the vehicle to another unit oflocal government, volunteer fire department, or volunteer rescue squad.

(b)        Partial Exemptions.– A maximum tax of forty dollars ($40.00) applies when a certificate of titleis issued as the result of a transfer of a motor vehicle:

(1)        To a secured partywho has a perfected security interest in the motor vehicle.

(2)        To a partnership,limited liability company, corporation, trust, or other person where no gain orloss arises on the transfer of the motor vehicle under section 351 or section721 of the Code, or because the transfer is treated under the Code as being toan entity that is not a separate entity from its owner or whose separateexistence is otherwise disregarded, or to a partnership, limited liabilitycompany, or corporation by merger, conversion, or consolidation in accordancewith applicable law.

(c)        Out‑of‑stateVehicles. – A maximum tax of one hundred fifty dollars ($150.00) applies when acertificate of title is issued for a motor vehicle that, at the time ofapplying for a certificate of title, is and has been titled in another statefor at least 90 days.  (1989, c. 692, s. 4.1; c. 770, ss. 74.9, 74.10; 1991, c. 193, s. 4; c.689, s. 323; 1993, c. 467, s. 1; 1995, c. 390, s. 31; 1997‑443, s.11A.118(a); 1998‑98, s. 15.1; 1999‑369, s. 5.9; 2000‑140, s.68; 2001‑387, s. 151; 2001‑424, s. 34.24(d); 2001‑487, s. 68;2009‑81, s. 2; 2009‑445, s. 16.)