Property tax/vehicle registration deduction in North Carolina

[knechtmb1]

This question on the form is confusing. I have two line items on my notice for payment for property tax and vehicle registration. There's the property tax on the vehicle, the registration, and the total. I am up to the car registration fees section of the form. Do I put just the registration, just the property tax, or both? The property tax section looks to be only for planes and boats

[NC-tax-mom]

Definitely just list Property Tax, not registration fees, for vehicles in NC. Confusion comes this year on TT as to where to list it: Under Boats and Planes Personal Property Tax (where we have listed it in years past) or under Vehicle Registration Fee where TT has a note that NC Vehicle Property Tax can be claimed?

[SteamTrain]

The forms were updated to include NC in the Vehicle Registration area.....so just put-em there.

[NC-tax-mom]

ok, thanks

[SteamTrain]

Just the property tax part....not the registration fee or any fee that is a flat fee:

just anything with a listed "Tax Rate Per $100 Value"

[sailorman7447]

When I look at 2020 and 2021 deductions and credits, I appears that for Vehicle Registration Fees in 2020 I received a credit of $300 of $472 claimed, whereas in 2021 I received $0 of $497 claimed.

Why is this?

[Jquez]

This is what I see on TurboTax for NC. Only county tax can be included it appears, not the city tax, or registration fee. Someone please let me know if this is correct. Thanks!

[RobertB4444]

@Jquez  Yes, it's correct. 

Since 2013 North Carolina has combined the annual property tax payment to the county in which you live with the annual vehicle registration fee that goes to the state. 

The portion that is deductible on the tax return is that property tax portion that is based on the value of the vehicle and is paid to the county

[SomeDude2]

So in NC, can you deduct both the car registration fees and the car county taxes or is it one or the other?  In TT, it shows car registration in the title but then also mentions taxes paid to the county.  So do you add those together?

Enter your car registration fees

Enter the deductible portion of your car registration fee. Learn more

In North Carolina, you can deduct the Vehicle Property Tax paid to your county on your vehicles.

[DMarkM1]

No, only the property tax portion paid is an itemized deduction.  NC is nice enough to separate those out for you for easy entry in the "Deduction and Credits" section using the "Car Registration" topic in TurboTax.   

[alyssasnow7]

@DMarkM1 Do you still only enter the County portion for NC and not the City or Special taxing?

[AnnetteB6]

It depends.  If the city or special taxing is based on the value of your vehicle, then it can be added to the county portion to be deducted.  

If those other amounts are a flat tax or based on something other than the value of your vehicle, then they are not deductible.

@alyssasnow7 

[S51]

I just want to be sure I have this right - it's my first time being able to add NC Vehicle Tax deductions to my itemized return. Appreciate the help. 

My documentation shows the below breakout. Need a little help with what portion of the total tax amount can be used for itemized deduction. 

- If only taxes based on vehicle value are deductible, then that rules out the $30 for Wendell VFee, correct? I have two cars of different value and that is a consistent fee amount on both

- I am unclear which of the three fields that are determined based on value should be included in my deduction. Are they all 3 tax deductible, or only the Wake County portion? 

Taxing Unit        Tax Rate       Amount

Fire Tax Dist       0.122500     $10.45

Wake County    0.517100     $44.11

Wendell             0.420000     $35.83

Wendell VFee                         $30.00

Total Property Tax                  $120.39

[DawnC]

Correct; the VFee is a flat municipal fee and is not deductible.   The other amounts are all taxes based on the value, so all 3 can be included as a property tax deduction.  All three of those are taxes based on the assessed value of the vehicle.   They go to different places, but all are still based on the value, so they are deductible... in North Carolina.

[henrybikes]

My vehicle registration renewal notice includes "Charlotte VFEE" under the "Vehicle Property Tax Information" section of the renewal.  This leads me to believe that the Charlotte VFEE, a fixed fee, is considered a property tax payment.  I believe this fee is used for road improvements and transportation. 

Vehicle Property Tax Information

County  Mecklenburg  .483100  $35.02

City  Charlotte  .274100  $19.87

City  Charlotte VFEE           $30.00

Property Tax:  $84.89