Form MVR-613: Highway-Use Tax Exemption Filing and Penalties

Form MVR-613, the Highway-Use Tax Exemption Certification, is the notarized document you submit to the North Carolina Division of Motor Vehicles alongside a title application to claim either a full waiver of the 3% highway-use tax or the reduced $40 cap that applies to certain transfers.¹ The tax otherwise runs 3% of the purchase price or fair market value on every title change, with no dollar cap on a standard passenger car.² Whether your transfer qualifies, and for which category, is the entire question the form answers.

Transfers That Owe No Highway-Use Tax

A full exemption means zero tax. Under North Carolina law, these transfers qualify:³

A gift between spouses, between a parent and child, or between a stepparent and stepchild. The word “gift” is doing real work. If money changes hands, even a token amount, the exemption is gone.
A vehicle inherited through a will or intestate succession, provided no compensation was paid to the estate.
A transfer dividing marital or divisible property in a separation or divorce.
Removing one or more co-owners from a title when no money is exchanged.
Retitling to reflect a legal name change or to correct an error on the existing title.
A transfer into a revocable trust where the owner is the sole beneficiary.
A salvage vehicle taken by an insurer under the total-loss process, or an abandoned salvage vehicle acquired by a dealer.
A vehicle transferred to a manufacturer or motor vehicle retailer for the purpose of resale.
A fire truck, tanker, or emergency vehicle transferred to a qualifying volunteer department with no more than two paid employees.
A vehicle donated to a 501(c)(3) organization solely for that organization to resell.

Narrower categories cover transfers to local school boards for driver education, transfers between government agencies redistributing vehicles to other public entities, and state-agency research or demonstration vehicles.³ Cherokee tribal members claiming the reservation exemption must submit a copy of their Cherokee ID card with the form.¹

Transfers Capped at $40 Instead of 3%

Some transfers do not zero out the tax but hold it to a $40 maximum. People assume they owe nothing and get surprised at the counter. Two categories fall here:³

A secured party repossession, where a lender with a properly recorded lien takes title after default.
A business entity transfer where no gain or loss is recognized under IRS Code Section 351 or 721. The same cap applies when the receiving entity is treated as a disregarded entity under federal tax rules, and when the transfer happens through a merger or consolidation under state law.

The business rule has a federal tax hook that matters. The transfer must qualify as a non-recognition event under the Internal Revenue Code. Selling a vehicle to your own LLC at fair market value and recognizing a gain does not qualify, and the full 3% applies. Confirm with a tax professional before assuming a restructuring fits.

Filling Out the Form

The MVR-613 is a single page. You can download it from the NCDMV website or pick one up at any license plate agency. The fields you complete are:¹

Vehicle details: year, make, body style, VIN, and fuel type, matching the existing title or registration exactly.
Owner information: full legal name, physical address, county, and state.
Exemption reason: a single checkbox that identifies your transfer. The form lists each option in plain language, such as “Gift between parent and child” or “Will or Intestacy when no compensation has been paid to the estate.”
Signature under penalty of law, dated.
Notarization: you must sign in the presence of a notary, who completes the section at the bottom.

Pick the box that describes your transfer exactly. Checking the wrong one is not a harmless clerical mistake. If NCDMV later determines the box you checked does not match the actual transaction, you can be assessed the full 3% plus penalties.

For family gift exemptions, the form itself is the primary documentation. It does not require attached proof of relationship, but clerks may ask for it at the counter. Bring a marriage certificate for a spousal transfer or a birth certificate for a parent-child transfer. Business entity mergers and name changes require paperwork identified in the NCDMV title manual, so check what applies to your specific transaction before you go.¹

When and Where to File

Submit the MVR-613 at the same time you apply for the new title. You cannot file it later to undo a tax that has already been assessed. Most people hand it in at a local license plate agency, where a clerk reviews it in person. You can also mail it with the title application to the NCDMV in Raleigh. There is no separate fee for filing the form.

Keep a signed, notarized copy for your own records. If NCDMV raises a question months or years later, your copy is the fastest way to resolve it.

Penalties for Claiming an Exemption You Don’t Qualify For

The signature line binds you. Misusing an exemption certificate triggers a flat $250 penalty from the Department of Revenue, on top of the full tax you actually owed. If the state finds the false claim was intentional, a fraud penalty equal to 50% of the underpaid tax applies. Willfully attempting to evade the tax is a Class H felony under North Carolina law, which can carry prison time.⁴

On a $30,000 vehicle, a fraudulent exemption claim can produce $900 in back tax, a $450 fraud penalty, the $250 misuse penalty, and a felony charge. The math on false claims does not work.

Situations the MVR-613 Does Not Cover

Two common reductions have nothing to do with this form. Commercial motor vehicles in Class A and Class B and recreational vehicles are capped at $2,000 in total tax regardless of value.² New residents titling a vehicle they already own pay a maximum of $250.⁵ Both apply automatically at titling based on vehicle classification or residency and do not require the MVR-613.

An out-of-state credit works differently. If you paid another state’s sales or excise tax on the vehicle within 90 days before applying for a North Carolina title, you can claim a dollar-for-dollar credit against the highway-use tax, and the MVR-613 includes a line item for that credit.⁶¹ Miss the 90-day window and the credit is gone; you owe the full 3%.

Refund requests for tax already paid are also a separate track. Returning a vehicle to the seller within 90 days is handled through form MVR-609A, which must be notarized and submitted within 30 days after you receive the replacement vehicle or a refund of the purchase price.⁷ If your issue is a disputed exemption rather than a returned vehicle, contact the NCDMV Vehicle Registration Section directly, because that path may require additional steps beyond MVR-609A.

1
North Carolina Division of Motor Vehicles. Highway Use Tax Exemption Certification
2
North Carolina General Assembly. North Carolina Code 105-187.3 – Rate of Tax
3
North Carolina General Assembly. North Carolina Code 105-187.6 – Exemptions From Highway Use Tax
4
North Carolina General Assembly. North Carolina Code 105-236 – Penalties
5
North Carolina Department of Transportation. The North Carolina Highway Use Tax – NC FIRST Brief Edition 3
6
North Carolina General Assembly. North Carolina Code 105-187.7 – Credits
7
North Carolina Division of Motor Vehicles. MVR-609A Claim of Sales or Use Tax Payment Under Protest Refund Requested