Notes on getting your A declared property tax exempt in NC

[alexiskai]

I just went through this so I'm putting notes here in case anyone doesn't know the procedure.

1. The A has to be properly titled and registered.
2. The license plate must be an antique plate, which means you either request that at time of registration or go back later and request it and pay the fee.
3. Download and fill out form AV-66.
4. Take this form to your county tax office; someone there should be able to review it and confirm that you are in compliance.
5. Once you've filed the form, the taxable value of the car will be capped at $500, so your property tax each year will be just a few bucks.

Further details:

• You can file the form any time between when you get the property tax bill for the car and 30 days after that bill is due. So for a new registration, you would pay the fee at the DMV, take your registration and receipt and form to the tax office, and then they'd refund the difference. If you're filing the form for an upcoming tax year, you'll get an amended bill in the mail.
• At this time (Sept. '22), the state of NC is not supplying antique tags because they have run out and can't get more. If this happens to you, take your form and registration with the regular license plate number to the county tax office and explain the situation. My tax office accepted the form and put some notes on the account once they confirmed the shortage.

Note on YOM plates: This doesn't make a difference for YOM plates at all; NC considers YOM plates ornamental and not the car's "real" tag.

[MrBruce]

Yes you can put antique plates and only pay $500.00 tax value. But, you are severely limited in driving the car. I don't have the five points they make you initial under penalty of law...one is you can only drive it occasionally for personal use and use it for parades. If I had the form in front of me I could list all of them. I've gone around with them on this and then they send you a note every three years and you log your mileage so they can track you. We shouldn't have to pay personal property tax on a 90 something year old vehicle and now if your not running antique plates they have kicked the value up, I was paying more property tax on a 91 year old vehicle than my 2015 Honda that I drive over 15,000 miles a year. Car clubs need to ban together and stop this. Just my thoughts

[alexiskai]

There's no mileage limit in the law, what are they telling you as far as maximum mileage? The law expressly permits "club activities," and a tour is clearly a club activity, so if you're using it for tours that would be legal.

[alexiskai]

Here are the five stipulations:
(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, or owned directly or indirectly through one or
more pass-through entities, 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.

[MrBruce]

There isn't any mileage limits, it's the personal use they are saying "Occasional personal use" as that is what the form states. All the points have an added law if you don't adhere to them. They are just asking for your mileage to see how much you are driving it. My truck is my daily driver, so I'm putting more miles than probably most Model A's are driven.

[MrBruce]

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Yes, those are the rules and I drive mine which violates rule number 3. I drive it more than occasionally! So if I initial that area I'm in violation of the tag

[alexiskai]

I can see why a daily driver wouldn't qualify for this exemption.

[katy]

Is NC the only state that taxes automobiles as "personal property"?

[alexiskai]

Originally Posted by katy

Is NC the only state that taxes automobiles as "personal property"?

Roughly half the states do, to varying degrees. Here's a handy table:
https://wallethub.com/edu/states-wit.../11585#vehicle

[alexiskai]

A lot of states have similar exemptions but each handles it differently. For example, in Virginia, which had the highest property tax rate in the table above, the tax exemption is handled at the county level, so only some counties offer it.

[nkaminar]

So if my club activity is a tour across the United States, is that legal?

My North Carolina DMV said that I could run with the year of manufacture tags (license plates) but had to keep the one they issued in the car.

[alexiskai]

Originally Posted by nkaminar

So if my club activity is a tour across the United States, is that legal?

If you had good documentation, I think you could win on the merits for a long tour or even something like the Great Race (which is basically a mobile exhibition).

[Hitman]

Glad I don't live in NC! Out here, I get to drive my car as I please, with the license plate of my choosing. It doesn't have to be a "club function" which is good, since my club is 100 miles away.

The wallet hub site you posted is also wrong for some states, including the state I live in, so I'd take that with a grain of salt. I realize you started this as a NC based thread, but the discussion wandered into other states.

I'd also be cautious of how you describe this. In my state, property taxes are land based. A car is taxed under the terms "vehicle license tax", which is basically the registration. Which is about $25 per year here too!

[alexiskai]

Well I can't lock the thread down to just NC residents, so we'll all have to live with the chaos and misinformation.

[Keith True]

That wallethub site has nothing to do with taxing antique cars in N.H.That is to set the price for first time registrations on new cars,and drops down every year for a few years.The state portion of the registration on my antique cars is $6,per year.50 cents per month.The town portion varies from town to town,usually runs between $6.-$9.per year.I keep all my antique stuff registered,it makes it easier to sell one out of state when they are registered.I have a few things I haven't driven in over 10 years,but they are plated.We have no sales tax.Insurance is not required here either,I don't need it to get plates.

[MrBruce]

https://www.fordbarn.com/forum/album...ictureid=44939
If this works, you will have a copy of the law.

[ronn]

a few of the insurance companies will ask, do you drive less then 2500 miles a yr?

The answer is yes, in that most dont care to check. In the case of my 12 Buick, there is no speed/odometer. I am supposed to keep a log book of sorts.......

could work that way with a "broken" speedo in an A as well.

[denis4x4]

TO NC residents: What kind of money are you saving with a property tax exemption on an A? Is it really worth it to scam the tax collector?

[d.]

As an NC resident, I have had my several Model A's licensed and registered for over 20 years...never been asked to verify mileage. $500 tax value.

[alexiskai]

Originally Posted by denis4x4

TO NC residents: What kind of money are you saving with a property tax exemption on an A? Is it really worth it to scam the tax collector?

Can't speak for others, but for me, $90 per year per car. And it's not a scam, I do drive only occasionally or for events. One of them isn't even running at the moment.

[ronn]

really worth it to scam the tax collector?

with todays gasoline prices? Ill bite..................
__________________

[Tom A400]

Can not get anymore antique plates permanently? I have one Model A registered as Antique and one not. I was waiting until it expired in Feb. to switch it over.This saved me $400 on one car

[alexiskai]

Originally Posted by Tom A400

Can not get anymore antique plates permanently? I have one Model A registered as Antique and one not. I was waiting until it expired in Feb. to switch it over. This saved me $400 on one car

Not permanently, just indefinitely – as in, DMV has no ETA on when new stock will arrive. Try in Feb; if they still are out of stock, file the AV-66 form under its current plate, and explain to your county tax office that the state is not issuing the antique plates at this time. Worked for me.

[d.]

no scam...you just show the clerk in the tax office that it is an antique car and the tax value gets listed as $500. just that simple. It took me all of 5 minutes to do this and I was out the door.

[Tom A400]

Thanks very much!

[alexiskai]

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I'm updating this thread with new information. To get the North Carolina antique vehicle tax exemption each year, you have to re-file form AV-66 each year. Do this after you get the annual notification from the state that registration is due. You can file the form either before or after you pay the registration fees. If you file it before, the state will send you an updated bill; if you file it after, the state will send a refund for the overpayment.

As stated earlier, you have to file the form in-person at your county tax office. If you already have the antique vehicle license plate (not the YOM plate, the special antique tags from the state), then you only need to bring the AV-66 form with you, no other documentation.

Edit: I brought in the form yesterday along with my registration bill. They went in the back and did computer things and came back out and said I was all set. When I went online later that night to NC DMV's payment site, the amounts were updated. $52 for the year.

[MrBruce]

Alex
I've never had to file the form in person? I pay the registration fee online and get a letter that I have to sign and initial the five points and mileage. I drive my truck to often to put antique plates on it. My problem was they set the value and use the highest price in the blue book.

[alexiskai]

Originally Posted by MrBruce

Alex
I've never had to file the form in person? I pay the registration fee online and get a letter that I have to sign and initial the five points and mileage. I drive my truck to often to put antique plates on it. My problem was they set the value and use the highest price in the blue book.

This process is for a vehicle that isn't driven often, has the antique plates, and you want to have the value set to $500.

[MrBruce]

Alex
Our 31 S/W Town Sedan has Antique plates and is taxed at $500.00 for many years now and I've never had to file any paperwork in person for the Antique plates after the initial registration. I get the registration every year and pay it online and they send me the letter to sign. Maybe Charlotte does it different than smaller towns in NC?

[alexiskai]

Originally Posted by MrBruce

Alex
Our 31 S/W Town Sedan has Antique plates and is taxed at $500.00 for many years now and I've never had to file any paperwork in person for the Antique plates after the initial registration. I get the registration every year and pay it online and they send me the letter to sign. Maybe Charlotte does it different than smaller towns in NC?

I wonder if maybe you were grandfathered in from a prior system. When I got the registration notice for my coupe, the value had been reset to market value and I was told by the county tax office that I have to re-file the form each year.

[Bruce of MN]

In Virginia, if you have antique plates, it is automatically exempt.

[Smokedtires]

Maybe I won't get the odometer fixed. I think I drove "6 miles" since the previous year inspection.

[Synchro909]

You guys pay a tax on possessions you bought with money on which you have already paid tax? Wow.

[Gene F]

Originally Posted by Synchro909

You guys pay a tax on possessions you bought with money on which you have already paid tax? Wow.

In West Virginia they charge a tax every May 1st for cattle and horses. Horses are $12 each, and cattle are $8 each. Think about some little 10 year old girl with a horse.... Yeah lotta weird rules in USA some times. Ever read the threads on here about auto titles...LOL

[alexiskai]

Originally Posted by Synchro909

You guys pay a tax on possessions you bought with money on which you have already paid tax? Wow.

It's not fundamentally any different from annual vehicle registration fees, which they do have in Australia and which are also paid using taxable income.

[Bruce of MN]

Like the Beatles sang, "They'll tax the pennies on your eyes!"

[Chris in WNC]

Originally Posted by Hitman

Glad I don't live in NC! Out here, I get to drive my car as I please, with the license plate of my choosing. It doesn't have to be a "club function" which is good, since my club is 100 miles away.

The wallet hub site you posted is also wrong for some states, including the state I live in, so I'd take that with a grain of salt. I realize you started this as a NC based thread, but the discussion wandered into other states.

I'd also be cautious of how you describe this. In my state, property taxes are land based. A car is taxed under the terms "vehicle license tax", which is basically the registration. Which is about $25 per year here too!

hitman, your comments would be more useful if you told us WHAT state you are in.

reminder to everyone, PLEASE pretty please post your location under your avatar photo! makes the interactions more helpful and enjoyable.
If you wish to keep your exact location private (why?) please put an approximate location, for example "western NC".

I will keep flogging this until y'all see the light.

[Chris in WNC]

thanks, alexiskai....

archiving this information in case I get another antique vehicle.

[Hitman]

Originally Posted by Chris in WNC

hitman, your comments would be more useful if you told us WHAT state you are in.

If you wish to keep your exact location private (why?) please put an approximate location, for example "western NC".

I will keep flogging this until y'all see the light.

Arizona

I don't trust the internet. Especially when talking about cars, parts and other things that aren't common. How many different Model A owners live in your respective cities and towns? Then add in that this is a hobby, which means you have enough disposable income to enjoy the hobby.

I just chose to limit the amount of personal info that is put out there. Perhaps its an overreaction, but I'd rather be safe than sorry.

[Banditorama]

Originally Posted by Synchro909

You guys pay a tax on possessions you bought with money on which you have already paid tax? Wow.

Every state shakes you down for tax money on the estimated value of your home, some states (including mine) goes even further and does vehicles too. If you stop paying your property tax eventually they'll evict you from your own home.

[Gene F]

Originally Posted by Chris in WNC

hitman, your comments would be more useful if you told us WHAT state you are in.

reminder to everyone, PLEASE pretty please post your location under your avatar photo! makes the interactions more helpful and enjoyable.
If you wish to keep your exact location private (why?) please put an approximate location, for example "western NC".

I will keep flogging this until y'all see the light.

Yes! and states are big places, so the privacy thing does not hold up. I know I have noticed I am less likely to offer a suggestion if there is not even a state on a profile Certain things are counter productive. Like a for sale add with no price. To me that just screams overpriced. Hoeemings, here, wherevever, I just skip right over the add.

[Synchro909]

Originally Posted by Banditorama

Every state shakes you down for tax money on the estimated value of your home, some states (including mine) goes even further and does vehicles too. If you stop paying your property tax eventually they'll evict you from your own home.

I don't think there is a state in Australia that taxes the family home but any second property in the same state can and usually is taxed if it is over a modest value. No possessions are taxed AT ALL, ANYWHERE as far as I know. If the family home is sold in this state, so long as you have lived in it for at least 12 months, any capital gain is not taxed. Any capital gain on the sale of a second property is taxed.
If a home owner doesn't pay their local Government rates for (I think) 3 years, the house may be sold from under them, otherwise, a man's home is his castle. Council rates pay for local roads, rubbish collection, libraries etc.

It's not fundamentally any different from annual vehicle registration fees, which they do have in Australia and which are also paid using taxable income.

Alexistai, I don't see the similarity. Our registration fees have two components. The first pays for the construction and maintenance of major roads in the state, the second is a system of compulsory third party insurance. That covers ONLY medical bills for anybody injured on the road. It does NOT cover any property damage - that is for the car's owner to arrange. Any road user here is entirely covered for medical costs including rehabilitation in the case of a collision.
In short, our registration fees are the car owner buying the right to use the roads and to be insured for personal injury while doing so. A person could own a museum full of valuable cars and not be liable for a cent in tax.

[alexiskai]

Originally Posted by Synchro909

In short, our registration fees are the car owner buying the right to use the roads and to be insured for personal injury while doing so. A person could own a museum full of valuable cars and not be liable for a cent in tax.

Same here. The tax is assessed only when the owner registers the car for the year. Not registered, sitting in a museum – no tax. It is a tax rather than a fee because the amount charged varies by county and city.

[Bruce of MN]

The lawyers seem to be able to find a difference between a tax and a fee, but either way, it is cash going from you to the government for them to spend.