North Carolina Property Tax Exemption for a Disabled Veteran's Adapted Vehicle

North Carolina taxes registered vehicles as property, billed with the registration. G.S. 105-275(5a) exempts "a motor vehicle owned by a disabled veteran that is altered with special equipment to accommodate a service-connected disability". For this purpose a disabled veteran is a veteran under 38 U.S.C. 101(2) "who is entitled to special automotive equipment for a service-connected disability, as provided in 38 U.S.C. 3901", so the test is VA's automotive adaptive equipment entitlement, not a rating percentage. Subdivision (5) separately exempts a vehicle the federal government gave a veteran for a World War II, Korea or Vietnam era disability. How to claim. The owner carries the burden of showing the exemption applies. Under G.S. 105-330.3(b) the owner files an application for exempt status with the county assessor within 30 days of the date the tax on the vehicle is due, on the Department of Revenue's form AV-10V. Once an approved application is on file, the assessor leaves the vehicle off the tax records, and the owner must report within 30 days of a registration renewal any vehicle that no longer qualifies, or face a $100 penalty for each registration period missed. What it does not cover. An ordinary vehicle of a veteran rated 100% is taxed. House Bill 39 of the 2025 session would have widened the exemption to any vehicle owned by a veteran with a 100% rating certified by VA; it was referred to the House Finance Committee on February 5, 2025 and has had no action since.