‘Glitch’ blamed for some Davidson Co. residents being overcharged on vehicle tax bill
DAVIDSON COUNTY, N.C. — Davidson County officials said a glitch is blamed for some county residents being overcharged on their vehicle tag tax bill.
The glitch involves the new tag and tax law in North Carolina. Under the law, vehicle owners must pay vehicle property taxes when they purchase or renew a license tag.
The program started in July 2013 and is for the vehicle property tax only. It does not affect mortgage or home property tax.
To ease the transition, the state employed a software company to make sure all tax bills were processed, according to Davidson County Tax Administrator Joe Silver. However, if an address listed in the software does not exactly match the address in the system at the tax office, by default the highest municipal tax rate in the county will be assessed on the vehicle tax bill.
“Therefore, if we had an address of 2109 E. Hwy. 64, Lexington, N.C., it would not match the address that the software program had of 2109 East Highway 64. This mismatched address would then have the city of Lexington tax rate on it,” Silver told the Thomasville Times.
The city of Lexington has the highest rate in Davidson County.
Prior to the this new law, the county was averaging 10 errors per month out of approximately 13,000 monthly bills mailed. The county is now averaging 60 refund requests each month because of the glitch.
Silver stressed the glitch impacts vehicle property tax only.
Silver said they are urging county residents to look at their bill. If you do not live inside the Lexington city limits but were charged the Lexington tax rate, do not contact the DMV. You should contact the Davidson County Tax Office at 242-2160 as soon as possible.
“When an error does occur and they pay the bill to the tag office, they will have to come by the Davidson County Tax Office and request a refund. Then it takes from four to six weeks before they will receive their refund,” Silver told the Thomasville Times. “N.C. law states that they only have 30 days to request this refund.”
Silver said the issue is also happening in other areas of the state.