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Wednesday, May 22, 2013 | 11:56 p.m.

Posted: 3:07 p.m. Thursday, March 14, 2013

Counties expect new 'Tag & Tax Together' system will bring in millions in unpaid tax revenue

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Counties expect new 'Tag & Tax Together' system will bring in millions in unpaid tax revenue
Counties expect new 'Tag & Tax Together' system will bring in millions in unpaid tax revenue

By Tenikka Smith

CHARLOTTE, N.C. —

In a matter of weeks, some of you will start receiving one bill for your vehicle property tax and vehicle registration renewal all in one. 

Right now, you are billed separately.

The bill will come from the N.C. Department of Motor Vehicles, which will distribute tax money back to counties.

People must pay both bills at the same time or they will not be able to renew their vehicle registration.

The Tag & Tax Together system was first approved by state lawmakers in 2005.  Several years and $11 million later, the technology to launch the system is ready to go. The first bills go out April 1.

"There has been no new state money, it has been financed through interest on late payments on property taxes,” Mecklenburg County Commissioner Karen Bentley said.

The North Carolina Association of County Commissioners estimates Mecklenburg County will generate $7.5 million in previously uncollected vehicle property taxes. Gaston County will see around $1.3 million and Cabarrus County could receive $754,000 more per year.

"I'm all for that being returned to the taxpayers in some form or another and not necessarily growing local government,” Bentley said.

But some state lawmakers are pushing a bill to repeal the Tag & Tax Together system.

Wilkes and Surry Rep. Sarah Stevens told newspapers in her district that she is concerned about the processing fees counties will have to pay to the state. Stevens claims counties will be charged $2.05 in processing fees for each bill and $6.13 for payments made with a credit card.

Channel 9 reached out to local lawmakers who are co-sponsoring the bill.  Iredell County Rep. Robert Brawley said via email, "After reviewing the bill lightly again, I need more information and data before continuing my support, what are we fixing?"

Supporters say counties will save money because they will no longer use resources to mail out bills and track down delinquent taxpayers.  Bentley said the millions in tax revenue expected to come in will more than cover any costs.

By mid-2014, all North Carolina vehicles will be incorporated into the system.

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