2005 North Carolina Code - General Statutes Article 9 - Taxation.

Article 9.

Taxation.

§ 160A‑206.� General power to impose taxes.

A city shall have power to impose taxes only as specifically authorized by act of the General Assembly. Except when the statute authorizing a tax provides for penalties and interest, the power to impose a tax shall include the power to impose reasonable penalties for failure to declare tax liability, if required, or to impose penalties or interest for failure to pay taxes lawfully due within the time prescribed by law or ordinance. The power to impose a tax shall also include the power to provide for its administration in a manner not inconsistent with the statute authorizing the tax. (1971, c. 698, s. 1.)

 

§ 160A‑207.� Remedies for collecting taxes.

In addition to any other remedies provided by law, the remedies of levy, garnishment, and attachment shall be available for collecting any city tax under the rules and procedures prescribed by the Machinery Act for the enforcement of tax liability against personal property, except that:

(1)������ The remedies shall become available on the due date of the tax and not before that time;

(2)������ Rules dependent on the existence of a lien against real property for the same tax shall not apply; and

(3)������ The lien acquired by levy, garnishment, or attachment shall be inferior to any prior or simultaneous lien for property taxes acquired under the Machinery Act. (1971, c. 698, s. 1; 1973, c. 426, s. 29.)

 

§ 160A‑208.� Continuing taxes.

Except for taxes levied on property under the Machinery Act, a city may impose an authorized tax by a permanent ordinance that shall stand from year to year until amended or repealed, and it shall not be necessary to reimpose the tax in each annual budget ordinance. (1971, c. 698, s. 1; 1973, c. 426, s. 30.)

 

§ 160A‑208.1.� Disclosure of certain information prohibited.

(a)������ Disclosure Prohibited. � Notwithstanding Chapter 132 of the General Statutes or any other law regarding access to public records, local tax records that contain information about a taxpayer's income or receipts are not public records.� A current or former officer, employee, or agent of a city who in the course of service to or employment by the city has access to information about the amount of a taxpayer's income or receipts may not disclose the information to any other person unless the disclosure is made for one of the following purposes:

(1)������ To comply with a court order or a law.

(2)������ Review by the Attorney General or a representative of the Attorney General.

(3)������ To sort, process, or deliver tax information on behalf of the city, as necessary to administer a tax.

(b)������ Punishment. � A person who violates this section is guilty of a Class 1 misdemeanor.� If the person committing the violation is an officer or employee, that person shall be dismissed from public office or public employment and may not hold any public office or public employment in this State for five years after the violation. (1993, c. 485, s. 34; 1994, Ex. Sess., c. 14, s. 67.)

 

§ 160A‑209.� Property taxes.

(a)������ Pursuant to Article V, Sec. 2(5) of the Constitution of North Carolina, the General Assembly confers upon each city in this State the power to levy, within the limitations set out in this section, taxes on property having a situs within the city under the rules and according to the procedures prescribed in the Machinery Act (Chapter 105, Subchapter II).

(b)������ Each city may levy property taxes without restriction as to rate or amount for the following purposes:

(1)������ Debt Service. � To pay the principal of and interest on all general obligation bonds and notes of the city.

(2)������ Deficits. � To supply an unforeseen deficiency in the revenue (other than revenues of any of the enterprises listed in G.S. 160A‑311), when revenues actually collected or received fall below revenue estimates made in good faith in accordance with the Local Government Budget and Fiscal Control Act.

(3)������ Civil Disorders. � To meet the cost of additional law‑enforcement personnel and equipment that may be required to suppress riots or other civil disorders involving an extraordinary breach of law and order within the jurisdiction of the city.

(c)������ Each city may levy property taxes for one or more of the following purposes subject to the rate limitation set out in subsection (d):

(1)������ Administration. � To provide for the general administration of the city through the city council, the office of the city manager, the office of the city budget officer, the office of the city finance officer, the office of the city tax collector, the city purchasing agent, the city attorney, and for all other general administrative costs not allocated to a particular board, commission, office, agency, or activity.

(2)������ Air Pollution. � To maintain and administer air pollution control programs.

(3)������ Airports. � To establish and maintain airports and related aeronautical facilities.

(4)������ Ambulance Service. � To provide ambulance services, rescue squads, and other emergency medical services.

(5)������ Animal Protection and Control. � To provide animal protection and control programs.

(5a)���� Arts Programs and Museums. � To provide for arts programs and museums as authorized in G.S. 160A‑488.

(6)������ Auditoriums, Coliseums, and Convention Centers. � To provide public auditoriums, coliseums, and convention centers.

(7)������ Beach Erosion and Natural Disasters. � To provide for shoreline protection, beach erosion control and flood and hurricane protection.

(8)������ Cemeteries. � To provide for cemeteries.

(9)������ Civil Defense. � To provide for civil defense programs.

(9a)���� Community Development. � To provide for community development as authorized by G.S. 160A‑456 and 160A‑457.

(10)���� Debts and Judgments. � To pay and discharge any valid debt of the city or any judgment lodged against it, other than debts or judgments evidenced by or based on bonds or notes.

(10a)�� Defense of Employees and Officers. � To provide for the defense of, and payment of civil judgments against, employees and officers or former employees and officers, as authorized by this Chapter.

(10b)�� Economic Development. � To provide for economic development as authorized by G.S. 158‑7.1 and G.S. 158‑12.

(10c)�� Drainage. � To provide for drainage projects or programs in accordance with Chapter 156 of the General Statutes or in accordance with this Chapter.

(11)���� Elections. � To provide for all city elections and referendums.

(12)���� Electric Power. � To provide electric power generation, transmission, and distribution services.

(13)���� Fire Protection. � To provide fire protection services and fire prevention programs.

(14)���� Gas. � To provide natural gas transmission and distribution services.

(15)���� Historic Preservation. � To undertake historic preservation programs and projects.

(15a)�� Housing. � To undertake housing projects as defined in G.S. 157‑3, and urban homesteading programs under G.S. 160A‑457.2.

(16)���� Human Relations. � To undertake human relations programs.

(17)���� Hospitals. � To establish, support and maintain public hospitals and clinics, and other related health programs and facilities, and to aid any private, nonprofit hospital, clinic, related facility, or other health program or facility.

(17a)�� Industrial Development. � To provide for industrial development as authorized by G.S. 158‑7.1.

(18)���� Jails. � To provide for the operation of a jail and other local confinement facilities.

(19)���� Joint Undertakings. � To cooperate with any other county, city, or political subdivision of the State in providing any of the functions, services, or activities listed in this subsection.

(20)���� Libraries. � To establish and maintain public libraries.

(21)���� Mosquito Control.

(22)���� Off‑Street Parking. � To provide off‑street lots and garages for the parking and storage of motor vehicles.

(23)���� Open Space. � To acquire open space land and easements in accordance with Article 19, Part 4, of this Chapter.

(24)���� Parks and Recreation. � To establish, support and maintain public parks and programs of supervised recreation.

(25)���� Planning. � To provide for a program of planning and regulation of development in accordance with Article 19 of this Chapter.

(26)���� Police. � To provide for law enforcement.

(26a)�� Ports and Harbors. � To participate in programs with the North Carolina Ports Authority and to provide for harbor masters.

(27)���� Public Transportation. � To provide public transportation by rail, motor vehicle, or another means of conveyance other than a ferry, including any facility or equipment needed to provide the public transportation.

(27a)�� Railroad Corridor Preservation. � To acquire property for railroad corridor preservation.

(27b)�� Senior Citizens Programs. � To undertake programs for the assistance and care of its senior citizens.

(28)���� Sewage. � To provide sewage collection and treatment services as defined in G.S. 160A‑311(3).

(29)���� Solid Waste. � To provide solid waste collection and disposal services, and to acquire and operate landfills.

(30)���� Streets. � To provide for the public streets, sidewalks, and bridges of the city.

(31)���� Traffic Control and On‑Street Parking. � To provide for the regulation of vehicular and pedestrian traffic within the city, and for the parking of motor vehicles on the public streets.

(31a)�� Urban Redevelopment. � To provide for urban redevelopment.

(32)���� Water. � To provide water supply and distribution services.

(33)���� Water Resources. � To participate in federal water resources development projects.

(34)���� Watershed Improvement. � To undertake watershed improvement projects.

(d)������ Property taxes may be levied for one or more of the purposes listed in subsection (c) up to a combined rate of one dollar and fifty cents ($1.50) on the one hundred dollars' ($100.00) appraised value of property subject to taxation.

(e)������ With an approving vote of the people, any city may levy property taxes for any purpose for which the city is authorized by its charter or general law to appropriate money. Any property tax levy approved by a vote of the people shall not be counted for purposes of the rate limitation imposed in subsection (d).

The city council may call a referendum on approval of a property tax levy. The referendum may be held at the same time as any other city referendum or city election, but may not be otherwise held (i) on the day of any federal, State, district, or county election already validly called or scheduled by law at the time the tax referendum is called, or (ii) within the period of time beginning 30 days before and ending 10 days after the day of any other city referendum or city election already validly called or scheduled by law at the time the tax referendum is called. The referendum shall be conducted by the same board of elections that conducts regular city elections. A notice of referendum shall be published in accordance with G.S. 163‑287. The notice shall state the date of the referendum, the purpose for which it is being held, and a statement as to the last day for registration for the referendum under the election laws then in effect.

The proposition submitted to the voters shall be substantially in one of the following forms:

(1)������ Shall the City/Town of ______ be authorized to levy annually a property tax at a rate not in excess of ____ cents on the one hundred dollars ($100.00) value of property subject to taxation for the purpose of ______?

(2)������ Shall the City/Town of ______ be authorized to levy annually a property tax at a rate not in excess of that which will produce $______ for the purpose of ______?

(3)������ Shall the City/Town of ______ be authorized to levy annually a property tax without restriction as to rate or amount for the purpose of ______?

If a majority of those participating in the referendum approve the proposition, the city council may proceed to levy annually a property tax within the limitations (if any) described in the proposition.

The board of elections shall canvass the referendum and certify the results to the city council. The council shall then certify and declare the result of the referendum and shall publish a statement of the result once, with the following statement appended: "Any action or proceeding challenging the regularity or validity of this tax referendum must be begun within 30 days after (date of publication)." The statement of results shall be filed in the clerk's office and inserted in the minutes of the council.

Any action or proceeding in any court challenging the regularity or validity of a tax referendum must be begun within 30 days after the publication of the results of the referendum. After the expiration of this period of limitation, no right of action or defense based upon the invalidity of or any irregularity in the referendum shall be asserted, nor shall the validity of the referendum be open to question in any court upon any ground whatever, except in an action or proceeding begun within the period of limitation prescribed herein.

Except for tax referendums on functions not included in subsection (c) of this section, any referendum held before July 1, 1973, on the levy of property taxes is not valid for the purposes of this subsection. Cities in which such referendums have been held may support programs formerly supported by voted property taxes within the general rate limitations set out in subsection (d) at any appropriate level and are not subject to the former voted rate limitation.

(f)������� With an approving vote of the people, any city may increase the property tax rate limitation imposed in subsection (c) and may call a referendum for that purpose. The referendum may be held at the same time as any other city referendum or election, but may not be otherwise held (i) on the day of any federal, State, district, or county election, or (ii) within the period of time beginning 30 days before and ending 30 days after the day of any other city referendum or city election. The election shall be conducted by the same board of elections that conducts regular city elections.

The proposition submitted to the voters shall be substantially in the following form: "Shall the property tax rate limitation applicable to the City/Town of ______ be increased from ______ on the one hundred dollars ($100.00) value of property subject to taxation to ____ on the one hundred dollars ($100.00) value of property subject to taxation?"

If a majority of those participating in the referendum approve the proposition, the rate limitation imposed in subsection (c) shall be increased for the city.

(g)������ With respect to any of the categories listed in subsections (b) and (c) of this section, the city may provide the necessary personnel, land, buildings, equipment, supplies, and financial support from property tax revenues for the program, function, or service.

(h)������ This section does not authorize any city to undertake any program, function, joint undertaking, or service not otherwise authorized by law. It is intended only to authorize the levy of property taxes within the limitations set out herein to finance programs, functions, or services authorized by other portions of the General Statutes or by city charters. (1917, c. 138, s. 37; 1919, c. 178, s. 3(37); C.S., s. 2963; 1921, c. 8, s. 1; Ex. Sess. 1921, c. 106, s. 1; 1947, c. 506; 1959, c. 1250, s. 3; 1971, c. 698, s. 1; 1973, c. 426, s. 31; c. 803, s. 2; 1975, c. 664, s. 7; 1977, c. 187, s. 2; c. 834, s. 2; 1979, c. 619, s. 5; 1979, 2nd Sess., c. 1247, s. 21; 1981, c. 66, s. 1; 1983, c. 511, ss. 3, 4; c. 828; 1985, c. 665, ss. 4, 7; 1987, c. 464, s. 6; 1989, c. 600, s. 8; 1989 (Reg. Sess., 1990), c. 1005, ss. 6, 7; 1991 (Reg. Sess., 1992), c. 896, s. 2; 2002‑159, s. 50(b); 2002‑172, s. 2.4(b); 2003‑416, s. 2.)

 

§ 160A‑210.� Repealed by Session Laws 1979, 2nd Session, c. 1247, s. 22.

 

§ 160A‑211.� Privilege license taxes.

(a)������ Authority. � Except as otherwise provided by law, a city shall have power to levy privilege license taxes on all trades, occupations, professions, businesses, and franchises carried on within the city. A city may levy privilege license taxes on the businesses that were formerly taxed by the State under the following sections of Article 2 of Chapter 105 of the General Statutes only to the extent the sections authorized cities to tax the businesses before the sections were repealed:

 

G.S. 105‑36 ��������������������� Amusements � Manufacturing, selling, leasing, or distributing moving picture films.

G.S. 105‑36.1 ������������������ Amusements � Outdoor theatres.

G.S. 105‑37 ��������������������� Amusements � Moving pictures � Admission.

G.S. 105‑42 ��������������������� Private detectives and investigators.

G.S. 105‑45 ��������������������� Collecting agencies.

G.S. 105‑46 ��������������������� Undertakers and retail dealers in coffins.

G.S. 105‑50 ��������������������� Pawnbrokers.

G.S. 105‑51.1 ������������������ Alarm systems.

G.S. 105‑53 ��������������������� Peddlers, itinerant merchants, and specialty market operators.

G.S. 105‑54 ��������������������� Contractors and construction companies.

G.S. 105‑55 ��������������������� Installing elevators and automatic sprinkler systems.

G.S. 105‑61 ��������������������� Hotels, motels, tourist courts and tourist homes.

G.S. 105‑62 ��������������������� Restaurants.

G.S. 105‑65 ��������������������� Music machines.

G.S. 105‑65.1 ������������������ Merchandising dispensers and weighing machines.

G.S. 105‑66.1 ������������������ Electronic video games.

G.S. 105‑74 ��������������������� Pressing clubs, dry cleaning plants, and hat blockers.

G.S. 105‑77 ��������������������� Tobacco warehouses.

G.S. 105‑80 ��������������������� Firearms dealers and dealers in other weapons.

G.S. 105‑85 ��������������������� Laundries.

G.S. 105‑86 ��������������������� Outdoor advertising.

G.S. 105‑89 ��������������������� Automobiles, wholesale supply dealers, and service stations.

G.S. 105‑89.1 ������������������ Motorcycle dealers.

G.S. 105‑90 ��������������������� Emigrant and employment agents.

G.S. 105‑91 ��������������������� Plumbers, heating contractors, and electricians.

G.S. 105‑97 ��������������������� Manufacturers of ice cream.

G.S. 105‑98 ��������������������� Branch or chain stores.

G.S. 105‑99 ��������������������� Wholesale distributors of motor fuels.

G.S. 105‑102.1 ���������������� Certain cooperative associations.

G.S. 105‑102.5 ���������������� General business license.

 

(b)������ Barbershop and Salon Restriction. � A privilege license tax levied by a city on a barbershop or a beauty salon may not exceed two dollars and fifty cents ($2.50) for each barber, manicurist, cosmetologist, beautician, or other operator employed in the barbershop or beauty salon.

(c)������ Piped Gas Restriction. � A city may not levy a privilege license tax on a person who is engaged in the business of supplying piped natural gas and is subject to tax under Article 5E of Chapter 105 of the General Statutes.

(d)������ Telecommunications Restriction. � A city may not impose a license, franchise, or privilege tax on a company taxed under G.S. 105‑164.4(a)(4c). (R.C., c. 111, s. 13; 1862, c. 51; Code, s. 3800; Rev., s. 2924; C.S., s. 2677; 1949, c. 933; 1971, c. 698, s. 1; 1996, 2nd Ex. Sess., c. 14, s. 23; 1998‑22, s. 12; 2001‑430, s. 17.)

 

§ 160A‑211.1.� Privilege license tax on low‑level radioactive and hazardous waste facilities.

(a)������ Cities in which hazardous waste facilities as defined in G.S. 130A‑290 or low‑level radioactive waste facilities as defined in G.S. 104E‑5(9b) are located may levy an annual privilege license tax on persons or firms operating such facilities only in accordance with this section.

(b)������ The rate or rates of a tax levied under authority of this section shall be in an amount calculated to compensate the city for the additional costs incurred by it from having a hazardous waste facility or a low‑level radioactive waste facility located in its jurisdiction to the extent to which compensation for such costs is not otherwise provided, which costs may include the loss of ad valorem property tax revenues from the property on which a facility is located, the cost of providing any additional emergency services, the cost of monitoring air, surface water, groundwater, and other environmental media to the extent other monitoring data is not available, and other costs the municipality established as being associated with the facilities and for which it is not otherwise compensated.

(c)������ Any person or firm taxed pursuant to this section may appeal the tax rate to the Board, but shall pay the tax when due, subject to a refund when the appeal is resolved by the Board or in the courts. (1981, c. 704, s. 15; 1985, c. 462, s. 10; 1987, c. 850, s. 22; 1989, c. 168, s. 35.)

 

§ 160A‑212.� Animal taxes.

A city shall have power to levy an annual license tax on the privilege of keeping any domestic animal, including dogs and cats, within the city. This section shall not limit the city's authority to enact ordinances under G.S. 160A‑186. (R.C., c. 111, s. 13; 1862, c. 51; Code, s. 3800; Rev., s. 2924; C.S., s. 2677; 1949, c. 933; 1971, c. 698, s. 1.)

 

§ 160A‑213.� Motor vehicle taxes.

(a)������ A city may impose an annual license tax on motor vehicles as permitted by G.S. 20‑97.

(b)������ By ordinance a city may provide that the annual license tax imposed under subsection (a) above may be waived for individuals serving as firemen or as members of emergency medical teams. A city may also provide such individuals with tags or decals with distinctive coloring, or other means, to identify the individual as a fireman or a member of an emergency medical team. (1971, c. 698, s. 1; 1979, c. 442.)

 

§ 160A‑214.� Cable television franchise tax.

A city may impose an annual franchise tax on cable television companies franchised under G.S. 160A‑319 to operate within the city. (1971, c. 698, s. 1; 1973, c. 426, s. 32.)

 

§ 160A‑214.1.� Uniform penalties for local meals taxes.

(a)������ Penalties. � Notwithstanding any other provision of law, the civil and criminal penalties that apply to State sales and use taxes under Chapter 105 of the General Statutes apply to local meals taxes. The governing board of a taxing city has the same authority to waive the penalties for a meals tax that the Secretary of Revenue has to waive the penalties for State sales and use taxes.

(b)������ Scope. � This section applies to every city authorized by the General Assembly to levy a meals tax.

(c)������ Definitions. � The following definitions apply in this section:

(1)������ City. � A municipality.

(2)������ Meals tax. � A tax on prepared food and drink. (2001‑264, s. 2.)

 

§ 160A‑215.� Uniform provisions for room occupancy taxes.

(a)������ Scope. � This section applies only to municipalities the General Assembly has authorized to levy room occupancy taxes. For the purpose of this section, the term "city" means a municipality.

(b)������ Levy. � A room occupancy tax may be levied only by resolution, after not less than 10 days' public notice and after a public hearing held pursuant thereto. A room occupancy tax shall become effective on the date specified in the resolution levying the tax. That date must be the first day of a calendar month, however, and may not be earlier than the first day of the second month after the date the resolution is adopted.

(c)������ Collection. � Every operator of a business subject to a room occupancy tax shall, on and after the effective date of the levy of the tax, collect the tax. The tax shall be collected as part of the charge for furnishing a taxable accommodation. The tax shall be stated and charged separately from the sales records and shall be paid by the purchaser to the operator of the business as trustee for and on account of the taxing city. The tax shall be added to the sales price and shall be passed on to the purchaser instead of being borne by the operator of the business. The taxing city shall design, print, and furnish to all appropriate businesses and persons in the city the necessary forms for filing returns and instructions to ensure the full collection of the tax. An operator of a business who collects a room occupancy tax may deduct from the amount remitted to the taxing city a discount equal to the discount the State allows the operator for State sales and use tax.

(d)������ Administration. � The taxing city shall administer a room occupancy tax it levies. A room occupancy tax is due and payable to the city finance officer in monthly installments on or before the 15^th day of the month following the month in which the tax accrues. Every person, firm, corporation, or association liable for the tax shall, on or before the 20^th day of each month, prepare and render a return on a form prescribed by the taxing city. The return shall state the total gross receipts derived in the preceding month from rentals upon which the tax is levied. A room occupancy tax return filed with the city finance officer is not a public record and may not be disclosed except in accordance with G.S. 153A‑148.1 or G.S. 160A‑208.1.

(e)������ Penalties. � A person, firm, corporation, or association who fails or refuses to file a room occupancy tax return or pay a room occupancy tax as required by law is subject to the civil and criminal penalties set by G.S. 105‑236 for failure to pay or file a return for State sales and use taxes. The governing board of the taxing city has the same authority to waive the penalties for a room occupancy tax that the Secretary of Revenue has to waive the penalties for State sales and use taxes.

(f)������� Repeal or Reduction. � A room occupancy tax levied by a city may be repealed or reduced by a resolution adopted by the governing body of the city. Repeal or reduction of a room occupancy tax shall become effective on the first day of a month and may not become effective until the end of the fiscal year in which the resolution was adopted. Repeal or reduction of a room occupancy tax does not affect a liability for a tax that was attached before the effective date of the repeal or reduction, nor does it affect a right to a refund of a tax that accrued before the effective date of the repeal or reduction.

(f1)���� Use. � The proceeds of a room occupancy tax shall not be used for development or construction of a hotel or another transient lodging facility.

(g)������ This section applies only to Beech Mountain District W, to the Cities of Belmont, Elizabeth City, Eden, Gastonia, Goldsboro, Greensboro, High Point, Kings Mountain, Lexington, Lincolnton, Lumberton, Monroe, Mount Airy, Reidsville, Roanoke Rapids, Shelby, Statesville, Washington, and Wilmington, to the Towns of Beech Mountain, Blowing Rock, Carolina Beach, Carrboro, Franklin, Kure Beach, Jonesville, Mooresville, North Topsail Beach, Selma, Smithfield, St. Pauls, Troutman, West Jefferson, Wilkesboro, and Wrightsville Beach, and to the municipalities in Avery and Brunswick Counties. (1997‑361, s. 4; 1997‑364, s. 5; 1997‑410, s. 3; 1997‑447, s. 2; 1998‑112, s. 4; 1999‑258, s. 3; 1999‑302, s. 2; 2000‑103, s. 9; 2001‑11, s. 2; 2001‑365, s. 3; 2001‑434, s. 9; 2001‑439, s. 18.1; 2002‑94, s. 4; 2002‑95, s. 3; 2002‑138, s. 2; 2002‑139, s. 2; 2002‑159, s. 62; 2003‑281, s. 14; 2004‑105, s. 3; 2004‑170, ss. 36(b), 42(b); 2004‑199, s. 60(b); 2005‑16, s. 3; 2005‑46, s. 2.3; 2005‑49, s. 3; 2005‑220, s. 5; 2005‑233, s. 6.2; 2005‑435, s. 45.)

 

§ 160A‑215.1.� Gross receipts tax on short‑term leases or rentals.

(a)������ As a substitute for and in replacement of the ad valorem tax, which is excluded by G.S. 105‑275(42), a city may levy a gross receipts tax on the gross receipts from the short‑term lease or rental of vehicles at retail to the general public. The tax rate shall not exceed one and one‑half percent (1.5%) of the gross receipts from such short‑term leases or rentals. This tax on gross receipts is in addition to the privilege taxes authorized by G.S. 160A‑211.

(b)������ If a city enacts the substitute and replacement gross receipts tax pursuant to this section, any entity required to collect the tax shall include a provision in each retail short‑term lease or rental agreement noting that the percentage amount enacted by the city of the total lease or rental price, excluding highway use tax, is being charged as a tax on gross receipts. For purposes of this section, the transaction giving rise to the tax shall be deemed to have occurred at the location of the entity from which the customer takes delivery of the vehicle. The tax shall be collected at the time of lease or rental and placed in a segregated account until remitted to the city.

(c)������ The collection and use of taxes under this section are not subject to highway use tax and are not included in the gross receipts of the entity. The proceeds collected under this section belong to the city and are not subject to creditor liens against the entity.

(d)������ A tax levied under this section shall be collected by the city but otherwise administered in the same manner as the tax levied under G.S. 105‑164.4(a)(2).

(e)������ The following definitions apply in this section:

(1)������ Short‑term lease or rental. � Defined in G.S. 105‑187.1.

(2)������ Vehicle. � Any of the following:

a.�������� A motor vehicle of the passenger type, including a passenger van, minivan, or sport utility vehicle.

b.�������� A motor vehicle of the cargo type, including cargo van, pickup truck, or truck with a gross vehicle weight rating 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 posses a commercial drivers license.

c.�������� A trailer or semitrailer with a gross vehicle weight of 6,000 pounds or less.

(f)������� The penalties and remedies that apply to local sales and use taxes levied under Subchapter VIII of Chapter 105 of the General Statutes apply to a tax levied under this section. The governing body of the city may exercise any power the Secretary of Revenue may exercise in collecting local sales and use taxes. (2000‑2, s. 3; 2000‑140, s. 75(c); 2001‑414, s. 51.)