(A) Definitions. For the purpose of this article, the following definitions shall apply unless the context clearly indicates or requires a different meaning.
CUSTOMER. Any person that leases, or rents, a vehicle on a short-term lease, or rental, basis.
GROSS RECEIPTS. The amount that is, or would be, reported as GROSS RECEIPTS on a business’s state income tax return, or on the federal income tax return filed with the state income tax return if the state return does not separately state gross receipts for the most recently completed tax year. Taxes collected hereunder are not subject to the tax herein imposed, and are not included in GROSS RECEIPTS.
LEASE or RENTAL. A transfer, for consideration, of the use, but not the ownership, of property to another for a period of time.
LONG-TERM LEASE or RENTAL. A lease or rental made under a written agreement to lease, or rent, property to the same person for a period of a least 365 continuous days.
PERSON. Any individual, trustee, executor, other fiduciary, corporation, unincorporated association, partnership, sole proprietorship, company, firm, or other legal entity.
SHORT-TERM LEASE or RENTAL. Any lease, or rental, of a vehicle that is not a long-term lease or rental.
TAX COLLECTOR. The individual appointed by the Town Council pursuant to G.S. § 105-349, and the provisions of the municipal charter, to collect taxes on behalf of the town, and any other person authorized to carry out the duties, and functions, of such individual.
TAX PAYER. Any person liable for the taxes imposed by this article.
VEHICLE.
(a) A motor
VEHICLE of the private passenger type, including a passenger van, minivan, or sport utility vehicle;
(b) A motor
VEHICLE of the cargo type, including a cargo van, pick up truck, or truck with a gross vehicle weight of 26,000 pounds or less used predominantly in the transportation of property for other than commercial freight, and that does not require the operator to possess a commercial driver’s license; or
(c) A trailer or semi-trailer with a gross weight of 6,000 pounds or less.
(B) Levy of tax. A tax is hereby imposed, and levied, in an amount equal to 1.5% of the gross receipts derived from the short-term lease, or rental, of vehicles at retail to the general public. This tax on gross receipts is in addition to the privilege taxes.
(C) Collection of the tax. Every person engaged in the business of the short-term lease, or rental, of vehicles at retail to the general public shall collect, at the time of the lease or rental, the tax herein levied, place the tax so collected in a segregated account, and thereafter remit such tax to the tax collector in accordance with the provisions of this article. The taxpayer shall include a provision in each retail short-term lease, or rental agreement stating that the percentage amount enacted by this article of the total lease, or rental, price, excluding highway use tax, is being charged as a tax on gross receipts. The amount of the tax shall be stated separately from the lease, or rental, and shown separately on the taxpayer’s records. The tax shall be paid by the customer to the taxpayer as trustee for, and on account of, the town. The taxpayer shall be liable for the collection thereof, and for his or her payment to the tax collector, and the taxpayer’s failure to charge, or to collect, said tax from the customer shall not affect the liability.
(D) Report and payment of tax. Taxes levied under this article are due, and payable, when a return is required to be filed. Every taxpayer shall, within the time specified, submit a return to the tax collector on the form prescribed by the tax collector. A return must be signed by the taxpayer, or the taxpayer’s agent. Returns of taxpayers are due to the tax collector each month on, or before, the fifteenth day of the month following the month in which the tax accrues. As provided in G.S. § 160A-208.1, a return shall not be considered a public record, and information contained in a return may be disclosed only in accordance therewith.
(E) Taxpayer to keep records. The taxpayer shall keep, and preserve, suitable records of the gross receipts received by such taxpayer in the conduct of business, and such other books, or accounts, as may be necessary to determine the amount of the tax for which such taxpayer is liable under the provisions of this article. It shall be the duty of the taxpayer to keep, and preserve, for a period of three years all such records of gross receipts, and other books and accounts described. All records, books, and accounts herein described shall be open for examination at all reasonable hours during the day by the tax collector, or his or her duly authorized agent.
(F) Tax collector to provide forms. The tax collector shall design, prepare, print, and make available to all taxpayers operating within the municipal boundaries of the town forms, and instructions, for filing returns to ensure a full collection of, and an accounting for, taxes due. The failure of any taxpayer to obtain, or receive, forms shall not relieve such taxpayer from the payment of the tax at the time, and in the manner, provided.
(G) Situs. The transaction giving rise to the tax herein levied shall be deemed to have occurred at the location of the entity from which the customer takes delivery of the vehicle.
(H) Penalties and remedies. The provisions, with respect to remedies and penalties applicable to G.S. Chapter 105, Subchapter VIII (“Local Government Sales and Use Tax”), apply to a tax levied under this article. The Town Council may exercise any power the Secretary of Revenue may exercise in collecting local sales, and use, taxes.
(I) Interest. In addition to penalties for late filing and/or late payment of this tax, interest will be charged in accordance with G.S. § 105-241.21.
(J) Administration. The tax levied by this article shall be collected by the town, but otherwise shall be administered in the same manner as the tax levied under G.S. § 105-164.4.(a)(2).
(Ord. 18-2000, passed 6-19-2000)
Statutory reference:
Related provisions, G.S. §§ 105-164.3(17), 105-187.1(a)(3a) and (a)(4),160A-215.1(e)(2), 160A-215.1(b), 160A-215.1(d), 160A-215.1(e)(2), 160A-215.1(f).