Beginning July, 2013 a modified law goes into effect under the NC General Statutes, Article 22A, Chapter 105-330, essentially allowing counties to legally pursue and bill taxpayers for missing months of unpaid motor vehicle taxes – referred to as gap billing.
Gap billing occurs when a taxpayer renews his or her vehicle registration late with the DMV, resulting in the creation of a new renewal date and changing the tax year. For example, let’s say Jane D. Taxpayer fails to renew for 12 months and must now buy a new license plate. DMV starts the annual license plate renewal process over for the taxpayer, but what about the missing 12 months of taxes owed on that property?
Easily Identifying Gaps
The new vehicle tax system, NCVTS, aids county tax offices in identifying these billing gaps using a new feature called the Gap Billing Report. The purpose of this report is to identify all vehicles with expired registrations and outstanding motor vehicle tax.
The Gap Billing Report covers three cases:
- Any vehicle that has not been paid in over a year
- Any vehicle that did not have a new plate issued
- Any vehicle where a new sticker or plate has been issued where it changes the renewal cycle
Collecting Missing Taxes
Once you have identified owners who have a gap in their tax payments, the modified statute allows for you to bill those vehicles as unregistered for that time period, just like any other personal property bill. These are billed outside of the vehicle tax system, but you can use the information gained from this report within NCVTS to help identify the tax payment gaps within your jurisdiction.
With modified statutes and the new technology available in NCVTS, you now have the tools to help you classify and collect on tax gaps!
To learn more about using the Gap Billing Report, please visit the NCPTS Customer Portal and view the PowerPoint and webinar recording titled County Reports Training or the NCVTS Gap Billing Report Tutorial.