WNeumann
New Member

Deductions & credits

The NC law has exemptions from paying the tax but gives you the choice of taking the state and local income deduction or the estimated state sales tax deduction. Not both Turbo does not allow the user to add the HUD as a deduction.

The law changed in 2017 to make the purchase of a vehicle a sales transaction of 3% without a dollar cap. The old cap was $300. The dealership did not realize this change and thought that it had been this way for a long time. 

So I have a partial year of property tax and the Highway Use Tax as a surprise to my purchase.

The HUD TAX is close to $1,200 in addition to the $480 property tax. 

Here is the link to the NCDOT HUD TAX Exemption https://www.ncdot.gov/dmv/title-registration/taxes/Pages/exemptions.aspx

You do receive a large credit to purchase an EV but good luck locating a charging station when the battery is running out.