Gap Billing - Personal Property Tax
What is Gap Billing of Property Taxes for Unregistered Vehicles?
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.
Why Did I Receive A Gap Property Tax Notice?
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 Town is required to collect property taxes for unregistered vehicles per North Carolina General Statute 105-330.3.
Does The Property Tax I Paid When I Renewed My Registration Apply To the Gap Billing Period?
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.
How Many Months Can A Gap Property Tax Notice Cover?
A gap property tax notice will cover at least one month and can cover all months between registrations, without limitation.
When Is My Vehicle Value Determined?
Vehicle value is determined as of January 1 of the calendar year in which the gap property tax notice was computed.
How Can I Appeal?
Appeals of value, situs (location where taxed), and taxability must be filed with the tax office within thirty (30) days of the September 1 that follows the gap property tax notice date.
When Are The Taxes Due And When Does Interest Start?
Taxes are due by the September 1 that follows the gap property tax notice date and can be paid without interest before the following January 6. Interest accrues for taxes paid on or after January 6 at 2% for the month of January and accrues at ¾ of 1% for each following month.
What If I Do Not Pay?
Taxes are delinquent if unpaid before the January 6 that follows the September 1 due date. Delinquent taxes are subject to garnishment of wages and levy on personal property immediately upon becoming delinquent.