Prepare To Pay More: NC Senate Proposes Tax Increase
GREENSBORO, N.C. - The State Senate wants to increase what's known as the Highway Use Tax. It has nothing to do with the car you drive. It only applies to commercial and recreational vehicles - so everything from work trucks to boats and RVs. In order to see an increase, you have to buy a commercial vehicle more than $34,000 or a recreational vehicle more than $50,000.
Lawmakers don't want to raise the tax rate. Instead they want to increase the maximum amount you pay. So just how high can it go? Currently the cap for taxes charged on commercial vehicles is $1,000. And the cap on recreational vehicles is $1500. But those caps would go up to $2000 in January. And in July 2015 they would increase to $3,000.
That's a lot of numbers, so let's look at a real example. Take a boat for sale on Greensboro's Craigslist. It costs $60,500. Right now you'd only have to pay $1500 dollars in taxes. But in January, it would be $1815. That's an additional $315 you'd have to pay. Doesn't seem like a lot more, but lawmakers expect this hike can raise $11 million statewide every year.
The proposal is just in the Senate version of the budget. We'll let you know if the increase makes it through to the final state budget.