DEATH AND TAXES

The headline is from a famous quote first credited to Benjamin Franklin in 1789, and appended ever since by endless pundits, politicians, and comedians. But for me, there was nothing funny about my recent trip to the North Carolina Department of Motor Vehicles.

The occasion? Earlier this year I decided to purchase a vehicle I had leased from Nissan, and I needed to transfer the title to the bank as collateral on the loan they had issued for the purchase. Now folks, I’ve lived in six different states over the last thirty years or so. And in almost every state where I’ve resided, trips to the DMV can be prefaced by three words: “Pack A Lunch.” And so I was prepared to face disappointment, and probably the need for a second trip to accomplish my mission. What I wasn’t prepared for was something called a “Highway Use Tax.”

In order for me to transfer the title for a car that I’ve driven in this state every day since January of 2006, the state of North Carolina wants to charge me three cents on the dollar of the purchase price, just to fund the coffers over in Raleigh. I was prepared to fork over 50 bucks or so. I wasn’t expecting an ad hoc fee nearly ten times that amount.

I’m not complaining about the figure. Lord knows, our roads and highways need all the pot-hole filling dollars they can get. I’m not complaining about the tax. I think it’s entirely appropriate that the people who use our state’s roads and highways should support the good folks who build and maintain them (if that’s indeed where this money goes). What I don’t like is the fact that this apparently well-established revenue stream was completely unknown to me until the moment I was standing at the window, ready to complete my transaction. As one of my colleagues puts it, I felt hoo-dooed.

Like many states, North Carolina charges a number of assorted and sundry charges and fees to folks who are wishing to transact business here. Every home Seller that I represent pays “revenue stamps” to the state – most easily determined by dividing the purchase price by 500 – just for the privilege of selling their home to a ready, willing, and able Buyer.

The difference is that I make sure, and double-sure, and then triple-sure that my Sellers understand that this fee will be a part of their expected costs once their home is headed for the closing table. No surprises. No “oh, by the way.” And no hoo-doo.

It’s called communication, folks. And if you or someone you know wants to work with someone who believes in the power of that simple little tool, give me a call. Hopefully I’ll be out of the line at the DMV then.

Robert Flinn, REALTOR®
919-402-1242 (Direct Line)
919-698-2040 (Cell)
rflinn@fmrealty.com (email)