17 NCAC 07B .4408          LEASES: OUT OF STATE NEGOTIATIONS

Lessors of motor vehicles may elect to pay the highway use tax to the Commissioner of Motor Vehicles when applying for a certificate of title for a motor vehicle purchased for lease or rental or they may collect and remit to the Secretary of Revenue the alternate gross receipts tax on the lease or rental receipts derived therefrom.  G.S. 105-187.1 through G.S. 105-187.11 contains the provisions of the highway use tax and alternate gross receipts tax rates on motor vehicles.  To make the election to collect and remit the tax on rental receipts, the lessor shall complete a Form MVR 608 provided by the Division of Motor Vehicles at the time of applying for a certificate of title.  Once made, an election is irrevocable for that motor vehicle.  If North Carolina Lessors lease motor vehicles to out‑of‑state lessees to be located, domiciled or assigned in this state for use in interstate operations, the lessors shall remit the highway use tax to the Commissioner of Motor Vehicles when applying for a certificate of title for the vehicles or collect and remit the alternate gross receipts tax on the lease or rental receipts notwithstanding that the lease may be negotiated outside North Carolina or that the vehicles are delivered to the lessees at a point outside this state or are registered outside this state.  If North Carolina lessors lease motor vehicles to out‑of‑state lessees for use exclusively in a state other than North Carolina and deliver the vehicles to the lessees at a point outside this state, the lessor is not liable for the highway use tax on the vehicle or the alternate gross receipts tax on the lease receipts.

 

History Note:        Authority G.S. 105‑164.4; 105‑164.13; 105-187.5; 105‑262;

Eff. February 1, 1976;

Amended Eff. August 1, 1996; May 1, 1994; October 1, 1993; July 5, 1980.