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Municipal Vehicle Tax FAQ

The amount that appears on your bill is an annual municipal vehicle tax, approved by Leland Town Council, per staff’s recommendation with the annual budget process.

The Town first enacted the municipal vehicle tax on July 1, 2019. The Town levied a $30 tax per registered vehicle with an address in the Leland Town limits with its annual budget ordinance and has done so each year since then. The tax will only be paid by residents who pay Leland property taxes.

Cities and towns in North Carolina are authorized, under general state law, to levy a motor municipal vehicle tax from $5 to $30 on vehicles.

Municipalities can use $5 of the tax revenue generated for any lawful purpose. Additionally, cities and towns that operate a public transportation system can use another $5 of the tax revenue on the maintenance and operations of that system, as well as any related building and construction costs.

The remaining revenue generated from a municipal vehicle tax must be spent on public street projects, including maintenance and repair, construction, widening, and other general improvements.

Each year since implementation, the Town has budgeted all revenue from its municipal vehicle tax for the maintenance and repair of Town-owned streets.

As funding allows, a variety of street maintenance projects will be undertaken with municipal vehicle tax revenue. Maintenance projects could include striping, pothole repair, and resurfacing projects for Town-owned streets. These improvements to Town streets are located primarily within neighborhoods and residential areas. Public thoroughfares and other major roads – such as Village Road, Old Lanvale Road, and Highway 17 – are owned and maintained by NCDOT.