Help with NC Department of Revenue

Wondering if anyone else has had this happen? I'm a NC resident and I bought a new Mako CC in Myrtle Beach in September 2014. I paid all SC taxes, fees, etc. at time of purchase. As far as I knew, I paid in full and all was right in the world. I bought in SC because they had what I wanted and it was ready to go.

Today in our mailbox, I got a notice from the NC Department of Revenue that I owed NC Sales Tax of 3% on the $27,000 purchase. So, around $750 plus another $750 in fines and fees. Did anyone else have this happen to them and how did you handle it?

Thanks,
TW

When we get plates and registration don't we pay all the fees at that time ?

I'm pretty sure you only pay the taxes to the state you register the vehicle/boat in. So I would see about getting some money back from SC. I also believe if you contact NC Tax folks they will wave the fine. My buddy did this some time ago and they did. They will work with you on innocent mistakes and if you don't have a history of bad misdeeds. If they think you're trying to pull a fast one or BS'n them then forget it.

I had the exact same thing happen to me. In 2000, I bought a new Ranger Fisherman from Angler's Choice in Virginia. I live in NC. I paid Virginia sales tax at the time of purchase and then registered and titled the boat in NC. Three years later I got the letter from the NC Tax Dept stating I owed additional sales tax and fines which I believe totaled over $1000.

I called the NC Tax Dept. and they explained that this ruling applied to NEW boats bought out of state. If that state's sales tax was LESS than NC, then I owed the difference to NC tax dept. Because I did not pay the additional tax on time, they started applying penalties which started low and then increased more over each time period until they got around to sending me a letter three years later and now had a tax bill over $1000. I was quite angry! I agreed with them if that was the law on this, then I was in agreement to pay the additional sales tax but not the penalties which were over $700. I advised that I would have paid the tax if THEY had sent me a bill. I was told that it was my responsibility to know to pay the proper NC sales tax and not their place to tell me to do such. Penalty amounts were established by the NC Legislature and their hands were tied on that matter.

I had a lengthy discussion with the Tax Dept and finally was told that I could appeal this by writing a letter to the head of the Tax Dept. outlining my position that I had no notice of additional tax owed. Sometimes they would adjust the amt owed to the additional sales tax and one penalty period. They could not drop all the penalties due to NC law that required at least one penalty to be applied for late payment. I wrote the letter and they did agree to accept the difference in sales tax between the two states and applied only one penalty period.

I would suggest that you call the NC Tax dept and see what can be worked out. Good luck.

Rick

Happened to me, too. If I remember correctly, I had to write a letter asking them to forgive the fine. They did that and I had to pay the required tax. It's strange that citizens are held to things like this when they just are not aware of the stipulations. It seems like the initial Title/Registration/Tag system would flag that the tax is due. I think that I remember the tax is only on titled equipment, so it may be that if you have an itemized bill of sale, you may only have to pay on boat and trailer instead of the complete rig (foregoing outboard, trolling motor, electronics, etc.).