ALT. HWY USE TAX VEHICLE SUBSCRIPTIONS.

View NCGA Bill Details2019-2020 Session
House Bill 537 (Public) Filed Tuesday, April 2, 2019
AN ACT TO REDUCE THE ALTERNATE HIGHWAY USE TAX ON VEHICLE SUBSCRIPTIONS.
Intro. by Conrad, Howard, Setzer, D. Hall.

Status: Ch. SL 2019-69 (Jul 1 2019)

SOG comments (1):

Identical bill

Identical to S 557, filed 4/2/19.

Bill History:

H 537/S.L. 2019-69

Bill Summaries:

  • Summary date: Jul 8 2019 - More information

    AN ACT TO REDUCE THE ALTERNATE HIGHWAY USE TAX ON VEHICLE SUBSCRIPTIONS. SL 2019-69. Enacted July 1, 2019. Effective October 1, 2019.


  • Summary date: Jun 19 2019 - More information

    Senate amendment makes the following changes to the 4th edition.

    Amends the proposed changes to GS 105-187.9 to require that of the highway use taxes collected at the rates of 8% and 5%, $10 million must be credited annually to the Highway Fund, with the remainder credited to the General Fund (previously, required the highway use taxes collected at the rate of 5% be credited to the North Carolina Highway Trust Fund).


  • Summary date: Jun 5 2019 - More information

    Senate committee substitute makes the following changes to the 3rd edition.

    Further amends GS 105-187.1 (setting out the definitions for use in Article 5A, North Carolina Highway Use Tax) as follows. Amends the definition of long-term lease or rental to mean a lease or rental made under a written agreement to lease or rent one or more vehicles (was, property) to the same person for a period of at least 365 continuous days, and adds that it cannot be a vehicle subscription. Adds that the statute does not apply to GS Chapter 20 (Motor Vehicles).

    Amends GS 105-187.9 to require the highway use taxes collected at the rate of 5% be credited to the North Carolina Highway Trust Fund instead of the Highway Fund.


  • Summary date: Apr 15 2019 - More information

    House committee substitute makes the following changes to the 2nd edition.

    Further amends GS 105-187.5 to make technical changes to refer to a "limited possession commitment" throughout.

    Modifies the proposed changes to GS 105-187.9 to now require $10 million of the taxes collected at the rate of 5 percent and 8 percent under Article 5A to be credited annually to the Highway Fund, with the remainder credited to the General Fund (was, $30 million of the taxes collected at 8 percent to the Highway Fund and all taxes collected under the 5 percent rate to be credited to the Highway Fund). 


  • Summary date: Apr 9 2019 - More information

    House committee substitute to the 1st edition makes the following changes.

    Amends the proposed changes to GS 105-187.9 to require $30 million (rather than $10 million) of the taxes collected at the rate of 8% (was, those collected at the rates of 5% and 8%) under Article 5A, NC Highway Use Tax, to be credited annually to the Highway Fund, with the remainder credited to the General Fund. Now requires taxes collected at the rate of 5% under Article 5A to be credited to the Highway Fund.


  • Summary date: Apr 2 2019 - More information

    Amends GS 105-187.1, which sets forth defined terms for Article 5A, NC Highway Use Tax. Adds the terms limited possession commitment, vehicle sharing service, and vehicle subscription. Amends long-term lease or rental to specify that the term applies to agreements concerning a single motor vehicle. Amends retailer to include a person engaged in the business of offering vehicle subscriptions for motor vehicles. Amends short-term lease or rental to mean a lease or rental of a motor vehicle or motor vehicles, including a vehicle sharing service, that is not a long-term lease or rental or a vehicle subscription.  

    Amends GS 105-187.5 to provide for a retailer to elect an alternate tax when applying for a certificate of title for a motor vehicle purchased for limited possession commitments (was, for lease or rental), defined as long-term lease or rental, short-term lease or rental, and vehicle subscriptions. Defines vehicle subscription to mean a written agreement that grants a person the right to use and exchange motor vehicles owned by the person offering the agreement upon payment of a subscription fee, excluding a vehicle sharing service, which is defined as a service for which a person pays a membership fee for the right to use a motor vehicle(s) upon payment of an additional time-based or mileage-based fee. Makes conforming changes to the statute to refer to "limited possession commitments" rather than "lease or rental". Sets tax rates for the gross receipts of vehicle subscriptions at 5% and maintains the current tax rates for short-term leases or rentals (8%) and long-term leases or rentals (3%). 

    Amends GS 105-187.9 to require $10 million of the taxes collected at the rate of 5% and 8% under Article 5A (was only those collected at 8%) to be credited annually to the Highway Fund, with the remainder credited to the General Fund. Maintains the provision requiring taxes collected at the rate of 3% to be credited to the Highway Trust Fund. 

    Amends GS 105-550 (concerning Regional Transit Authority vehicle rental tax) and GS 153A-156 (concerning county gross receipts tax on short-term leases or rentals) to amend the definitions of short-term lease or rental in each statute to now refer to the definition in GS 105-187.1, as amended. 

    Applies to vehicle subscription agreements entered into on or after October 1, 2019.


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