Age Has Its Privileges – A Sequel
| 31 July 2003
You probably recall how the February 2003 pony tricks described a procedure for reducing North Carolina personal property tax on cars 35 years old and older, if the car was licensed as an antique. It could be licensed as an antique if it met the following guidelines quoted from North Carolina General Statute Chapter 20, section 79.4 (b,17):
“(17) Historic Vehicle Owner. - Issuable for a motor vehicle that is at least 35 years old measured from the date of manufacture. The plate for an historic vehicle shall bear the word "Antique" unless the vehicle is a model year 1943 or older. The plate for a vehicle that is a model year 1943 or older shall bear the word "Antique" or the words "Horseless Carriage", at the option of the vehicle owner.”
Regarding the state law for personal property tax, North Carolina General Statute Chapter 105, section 330.9 (a and b) was quoted:
“(a) For the purpose of this section, the term "antique automobile" means a motor vehicle that meets all of the following conditions:
(1) It is registered with the Division of Motor Vehicles and has an historic vehicle special license plate under G.S. 20-79.4.
(2) It is maintained primarily for use in exhibitions, club activities, parades, and other public interest functions.
(3) It is used only occasionally for other purposes.
(4) It is owned by an individual.
(5) It is used by the owner for a purpose other than the production of income and is not used in connection with a business.
(b) Antique automobiles are designated a special class of property under Article V, Sec. 2 (2) of the North Carolina Constitution and shall be assessed for taxation in accordance with this section. An antique automobile shall be assessed at the lower of its true value or five hundred dollars ($500.00). (1995, c. 512, s. 2.)”
That’s all well and good, you say, but does it work? Or is there a catch somewhere? Well, I’ve just gone through the process and it works. I reduced the tax on my ’67 from $70.86 to $2.95 based on tax rates in Union County. That’s a gross saving of $67.91 or a net saving of $57.91 because the antique tag costs $10 more than a regular tag.
And now for the catches because there were three that I identified. First, it turns out that specialty tags are not highlighted by the state when they hand off taxing information to the counties. The county has to identify the antique tag by “finding” it manually. In my case, they missed it so when I received my tax bill, it was based on the value of the vehicle in the tax assessment table. I phoned the county tax office, they verified the antique tag, and mailed me a questionnaire to complete and return. They told me they would base the tax on $500.00 if I passed the “questionnaire test.” That’s the second catch, the questionnaire. I’ll list the questions in a minute.
The third catch could be a tough one because when the questionnaire is returned, it must be accompanied by a copy of the title (should be easy), a copy of the current registration card (also easy), and a copy of the previous year’s registration card. That’s right the previous year’s registration card. That could be the tough part if you forget to keep the old registration card when you get your new one.
The questionnaire is straightforward and shouldn’t be a problem. Here are the questions:
1. What is the primary use of this vehicle? (My answer: Club activities.)
2. How often do you drive this vehicle? (My answer: Once each month.)
3. How many miles has this vehicle been driven in the past year? (In my case, 95 miles.)
4. What is the current odometer reading? (Fill in the blank.)
5. Is this vehicle used in connection with any business or for any income producing purpose? (We know from the statute quoted above that it won’t qualify if the answer is “yes”.)
In a nutshell, the Union County procedure works as outlined below. Without any personal knowledge, I expect other counties have similar procedures.
1. When the annual registration is renewed, ask to register the car as an antique. It will be taken care of at the counter (I don’t know about mail-in or Internet renewals.). On the spot, you’ll get a new registration card for your present registration and a new date-sticker for your current tag. And by mail a week to 10 days later, you’ll receive the antique tag along with an updated registration.
2. Wait to see if the county “finds” the antique status before the tax bill is generated. If they do, you’ll receive the questionnaire before your tax bill is issued. After returning the completed questionnaire, the county will review your answers and you’ll receive a tax bill based on their decision.
3. If the county doesn’t “find” the antique status, you’ll receive a tax bill based on their assessment value for your particular year/model car. Call them to explain that you changed to an antique tag and request the questionnaire. Return the completed questionnaire and based on the county review of your answers, you should receive a revised tax bill in about a week.