Skip to main content

FAQ: Municipal Vehicle Tax

What is the “LELAND VFEE” included in my property tax bill?

The amount that appears on your bill is an annual municipal vehicle tax, approved by Leland Town Council, per staff’s recommendation, in the 2019-20 fiscal year budget.

This is the first year the Town has enacted the municipal vehicle tax, allowable under North Carolina law. The Town levied a $30 tax per registered vehicle with an address in the Leland town limits with their annual budget ordinance.  The tax will only be paid by residents who pay Leland property taxes.

What is the purpose of a municipal vehicle tax?

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.

How will the Town of Leland use its municipal vehicle tax revenue?

The Town has budgeted all revenue from its municipal vehicle tax for the maintenance and repair of Town-owned streets. This year, a large portion of that funding is being used for the Mallory Creek Drive patching project. This project, which is scheduled to be completed by the end of 2019, makes critical repairs to the road that connects Highway 133 to Highway 17, thus providing greater connectivity and quicker response times for emergency services.

As funding allows, a variety of other prioritized 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 the N.C. Department of Transportation (NCDOT).