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Vehicle Rental and U-Drive-It Return and Instructions
These taxes are assessed in Mecklenburg County, the City of Charlotte, the Towns of Cornelius, Davidson, Huntersville, Matthews, Mint Hill, and Pineville.
Effective December 1, 2006, five percent (5%) U-Drive-it Vehicle Rental tax is assessed in addition to the current 1.5% Charlotte Vehicle Rental Tax and 1.5% Mecklenburg Vehicle Rental Tax. The new 5% tax is applicable for passenger cars, trucks, sport utility vehicles, and motorcycles. Also included are property-hauling vehicles (van, truck, or trailer) 7,000 pounds or less.
The U-Drive-It Rental Tax is a County tax only and is charged and remitted in the same manner and has the same due date that the current three percent (3%) tax has. The five percent (5%) U-Drive-It Tax will be charged separately from the the current vehicle tax as well as other taxes and it must show separately on the sales record.
Penalties for noncompliance include assessing ten percent (10%) for the tax not paid, 5% per month if the return is not filed on the due date, and three-fourths of one percent (3/4%) per month from the due date until the tax is paid.
Vehicle Rental Tax
One and one-half percent (1.5%) for the County and one and one-half percent (1.5%) for the City of Charlotte and the towns assessed against the amount charged for the lease or rental of a vehicle (car, truck, etc.), whether made under a written or verbal contract of agreement, made to the same person for a period of less than 365 continuous days. Except for the town of Huntersville, the Mecklenburg County Office of the Tax Collector is responsible for collecting this tax on behalf of the County and remaining municipalities.
Penalty for Late Payment
A person, firm, or corporation, or association who fails or refuses to file a return on the date it is due, are subject to the following:
A penalty equal to five percent (5%) of the amount of the tax if the failure to file is for not more than one (1) month, with an additional five percent (5%) for each additional month, or fraction thereof, not exceeding twenty-five percent (25%) in the aggregate, or five dollars ($5.00), whichever is greater. In addition, a person, firm, corporation, or association who fails to pay the tax levied when due, without intent to evade the tax, shall pay a penalty of ten percent (10%) of the tax, except that the penalty shall in no event be less than five dollars ($5.00). Also, taxes paid after the filing date will be delinquent and subject to interest charges. Interest shall accrue at the rate of three-fourths of one percent (3/4%) a month or fraction thereof until the principal amount of the taxes, the accrued interest and any penalties are paid in full.
PLEASE NOTE - Closing, Transferring or Selling Business: The Business Tax Collections unit must be notified forty-eight (48) hours in advance of a change in address, or ownership, or if business operations cease.
Should you have any questions or require additional information, please contact the Business Tax Collections unit by phone at 704-336-6315 or via e-mail at taxbusiness@MecklenburgCountyNC.gov.