Retail sales of tangible personal property not subject to a reduced rate of tax are subject to the 5.75% general State rate of sales or use tax. The general rate of tax also applies to the rental of rooms, lodgings, or accommodations furnished to transients, and to charges for cleaning, pressing, hat blocking, and laundering of linens and apparels. Qualifying food is taxed at 2%, all of which goes to county and local governments. Additional state taxes are included in the purchase price of alcoholic beverages, cigarettes and gasoline.
The Highway Use Tax is a one-time fee. When a vehicle is purchased, the tax is 3% of the retail value, with a maximum tax of $1,500. New residents moving into N.C. pay 3% of the wholesale value of the vehicle, with a maximum tax of $150.
During January each year, owners are required to list unlicensed vehicles, trucks, trailers, motorcycles, boats and motors, mobile homes, aircraft and personal property used in a trade or business. New construction to land and buildings within the preceding year must be reported. Penalties apply when such listings are not made. Taxes on listed personal property are billed and collected at the same time as real property.
Personal property tax on licensed vehicles and trailers is billed separately within 3 months of the date of registration.
Orange County: 245-2100, Fax 644-3091
228 South Churton Street, Suite 200
P.O. Box 8181, Hillsborough, N.C. 27278
Durham County: 560-0300, Fax 560-0350
200 East Main Street, 1st. Floor, Old Courthouse, Durham, NC 27701
Chatham County: 542-8260 (collection), 542-8250 (listing/assessing), Fax 542-2963
12 East Street, Pittsboro, NC 27312 (Courthouse Annex)
FREE TAX ASSISTANCE
The VITA (Volunteer Income Tax Assistance) program is a free tax service for individuals with low to middle-income ($42,000 or less) whose returns are not complex or long. No age restrictions. Non-English-speaking clients need to bring an interpreter. Hospital and home visits are arranged for the homebound or disabled. Service begins in late January and ends the week of April 15. Returns are prepared using computers and can be filed electronically.