Learn more about the Rental Vehicle Gross Receipts Tax. Find out what constitutes a rental vehicle, filing requirements and returned payment penalties.
Overview
The Wake County Board of Commissioners implemented a 1½% gross receipts tax on rental vehicles effective July 1, 2000. This gross receipts tax is a substitute for the property tax on a short-term leased or rental vehicle. This refers to any rental vehicle that is offered at retail for short-term lease or rental and is owned or leased by an entity engaged in the business of leasing or renting vehicles to the general public.
The county gross receipts tax on rental vehicles is independent of rental vehicle taxes administered by GoTriangle and the NC Department of Revenue. For information on the filing requirements of these businesses, please visit their web sites using the links provided above.
File and Pay your Rental Vehicle Return Online
A rental vehicle is:
- A motor vehicle of the private passenger type, including a passenger van, mini-van, sport utility or recreational vehicle
- A motor vehicle of the cargo type, including a cargo van, pickup truck or truck with a gross vehicle weight of 26,000 pounds or less used predominately in the transportation of property for other than commercial freight and that does not require the operator to possess a commercial driver's license
- A trailer or semi-trailer with a gross vehicle weight of 6,000 pounds or less.
Subject Businesses include, but are not limited to, the following:
- Automobile Sales Dealers
- Truck Sales Dealers
- Trailer Sales Dealers
- Automobile Rental Agencies
- Truck Rental Agencies
- Trailer Rental Agencies
- Equipment Rental Agencies
- Any other establishment, place of business or enterprise maintaining facilities, equipment, services or inventory for the lease of rental or any type or kind of short-term lease or rental of a vehicle.
Short-Term Lease or Rental
This applies to a lease or rental that is made under a written agreement to lease or rent property to the same person for a period of less than 365 continuous days.
Rental Location within City Limits
An additional 1½% gross receipts tax will be collected from any rental location situated within any city limit in the county of Wake. The tax will be charged at the rental location at which the customer takes delivery of the vehicle.
Establishing an Account and General Filing Information
Retailers must complete a Gross Receipts Tax Application to establish an account number for tax reporting purposes.
Businesses may complete and submit their application online by selecting the Online GR Application button below.
If you are unable to complete your application online, a printable version is available below and may be emailed to taxhelp@wake.gov or mailed to:
Wake County Tax Administration
Rental Vehicle Tax Division
P.O. Box 2719
Raleigh NC 27602-2719
For assistance in completing an application or questions regarding the Vehicle Rental Tax, please call our office at 919-856-5999 or email taxhelp@wake.gov.
Important information on your PIN
Once a tax account number is established, a letter containing your account's PIN code will be mailed to you. You will be asked to provide this PIN when calling or visiting our office to discuss account information. The PIN is also required to complete online filing and electronic payments. A PIN may also be obtained by calling our office at 919-856-5999.
- A report must be filed each month on or before the twentieth day of the month following the month in which the tax accrues.
- Reports must be filed online or postmarked by the U.S. Postal Service by the twentieth day of the month following the month in which the tax accrues. Metered mail is considered to be received as of the date the remittance is received in this office.
- The tax shown to be due must be paid with the report or penalties will be charged. See NCGS 105.236 for information regarding penalties.
- If remitted by mail, your check or money order should be made payable to the Wake County Department of Tax Administration. One check for all locations will be accepted; however, a separate report for each location must be filed.
- If you do not owe any tax for a month, you must file a "Zero Due Return" using the online system or mail a report showing "No Tax Due" to our office.
As provided in NCGS 153A-148.1, a return filed with the Wake County Department of Tax Administration shall not be considered a public record and information contained in a return may not be disclosed except as required by law.
Return Payment Penalties
Per North Carolina General Statute 105-236, the penalty for presenting a check or electronic funds transfer that is returned is $25.00 or 10% of the amount of the check or electronic invoice, whichever is greater, subject to a maximum of $1,000.00. This penalty will be added to and collected in the same manner as the taxes for which the check or electronic payment was given.
For more information on return check penalties, view NCGS 105-236.
