Highway use tax to increase on car purchases

[suburban george3]

State senator Daniel Clodfelter (D-Mecklenburg) has introduced legislation to increase NC sales tax on car sales. Currently NC sales tax on cars is 3%, making the tax on a $24,701 car $741. If this legislaton passes, the new tax would be $1667.25. This extra tax would go to repair state highways.

While I personally am opposed to this tax (surrounding states have lower tax rates on car sales and some don't have property tax on automobiles) because I think we should do a much better job with the current taxes being collected for highway funds. Look at NC's gas prices in relation to almost evey other southern state, we are .30 cents higher per gallon then some of our neighbor's. I am not willing to give our state more funds as they evidently can't manage the treasure chest they currently have.

Thoughts?

FOX8 WGHP Story about proposed Sales Tax Increase on Car sales

[e2ksj3]

I agree, it's already insane enough that we pay one of the highest gas taxes in the country, now they want to double the tax on cars! If they would cut some of their pork projects and move highway money towards areas that need it, then we wouldn't need more taxes.

[MZT]

NC didn't even have a sales tax on cars, until about 1992. (Or it was a VERY nominal flat fee.)

In 2000 I still lived in CA, but bought a car here, because it was still cheaper to pay 3% in NC and drive it all the way back to CA where the tax was 7.75%. (I just kept the NC plates registered at a friend's address until 2002, when I moved back.)

[RiverwoodCLT]

If the money stay in the county it was collected it would be one thing. But it will be like all other taxes, the big urban areas will collect the most and receive a lot less back.

[sax184]

The tax should not be percentage based if it is about fixing roads. Vehicles which cause more damage should pay more. This means 18 wheelers and Hummer H2s should pay a heck of a lot more than a Miata, regardless of price. For a better example, you could put a more expensive smaller car like a Porsche coupe next to a Hummer. The Hummer, being heavier, should pay more. Also, the cars with higher emissions on an annual basis should pay more.

[MZT]

A fuel sales tax would be even more fair than that. 1000 miles in a H2 probably uses more gas and does more road wear than even 3000 miles in a Honda Civic.

The problem, is that people would buy gas in South Carolina to escape tax. (Well, OK. They already do. )

[JDC]

The tax should not be percentage based if it is about fixing roads. Vehicles which cause more damage should pay more. This means 18 wheelers and Hummer H2s should pay a heck of a lot more than a Miata, regardless of price. For a better example, you could put a more expensive smaller car like a Porsche coupe next to a Hummer. The Hummer, being heavier, should pay more. Also, the cars with higher emissions on an annual basis should pay more.

[monsoon]

Actually the article is badly written. It is not a sales tax, but rather a highway use tax and is devoted in part to road and transit funding.

here

I really wish the media would do their homework better than they do these days.

[atlrvr]

Look at NC's gas prices in relation to almost evey other southern state, we are .30 cents higher per gallon then some of our neighbor's. I am not willing to give our state more funds as they evidently can't manage the treasure chest they currently have.

[MZT]

Road maintenance definately varies by county, though - even if the state is propping up the funding. I know many times I have observed a rural "county road" changing asphalt types, at the county line.

[rooster8]

^^^Most paving projects on secondary (aka county) roads usually stay in one county or another. Counties are separated into districts which comprise divisions. Paving projects are drawn up at the district level based on need and are passed up the chain. They probably stick to one-county projects to make bidding and specifications simpler.

Every once and a while a legislator will suggest that counties take on some responsibility regarding roads. Such a devolution took place in Florida a while back, but I don't see it happening anytime soon here.

[ChiefJoJo]

I'm under the impression that the higher gas tax pays for all the state maintained roads. North Carolina is the only (I think) state that does not have county maintained roads. If the road is not within a town/city limit, the state is responsible for maitenace. Part of the funding comes from a higher gas tax. The benefit is that the cost is shared by out of state drivers, as opposed to how most states fund this, which is through a higher property tax paid to the county.

[Jones_]

I am always amazed that Texas is the only State with more roads than NC....and until very recently we were no. 1.....

[Spatula]

I think tolls would work better. Not as a total replacement for taxes by any means, but just to take care of maintenance costs tied to traffic.

[ChiefJoJo]

It seem there will be no new transportation money in the state this year. I think the Governor has shown he does not care much about transportation, and most of the GA doesn't have the will to get anything funded, despite the need.

[Spatula]

I think I should mention that even though everyone (including me) hates tolls, at least they'd make part of the cost of highways more visible, and would foster more support for mass transit.

[nova72asu]

The HUT applies if you are moving to NC, not just registering a purchased car.

I moved from NC to GA and just recently moved back to NC. I got hit by surprise at the ta/title office. My car wasn't much but my wife's car is worth more.

I dunno if there is an exception to this tax since both lived in NC before and both cars were bought in NC, when we lived there.

In other words we already paid this tax when we purchased the cars, but since we moved out of state and now moving back we are hit with it again! This seems unfair.

Any thoughts on this?

[monsoon]

^I believe they will give you credit for having already paid this tax in your vehicles in NC. You have to provide proof however.

[nova72asu]

^I believe they will give you credit for having already paid this tax in your vehicles in NC. You have to provide proof however.