Important Notice: Increase in the Highway Use Tax Due On the Lease or Rental of Certain Motor Vehicles

This document serves as notice that effective January 1, 2016, the maximum alternate highway use tax on a continuous lease or rental to the same person of a Class A or Class B motor vehicle that is a commercial motor vehicle, as defined in N.C. Gen. Stat. § 20-4.01, and for each recreational vehicle, as defined in N.C. Gen. Stat. § 105-187.1(4), is increased to two thousand dollars ($2,000). The increase in the maximum tax applies to a lease or rental agreement for such motor vehicles entered into on or after January 1, 2016. A retailer that elects not to pay the highway use tax to the North Carolina Division of Motor Vehicles when applying for a certificate of title for a motor vehicle purchased by the retailer for lease or rental, shall pay the alternate highway use tax due on the gross receipts derived from the lease or rental of a motor vehicle to the North Carolina Department of Revenue.