As of October 1, 2019, North Carolina has created separate tax rates for vehicle subscriptions, long-term leases or rentals, and short-term leases or rentals.
Taxed at 5%, a vehicle subscription is a written agreement granting a person the right to exclusive use and exchange of an agreed-upon number of motor vehicles under a subscription fee. It does not include a vehicle sharing service. Taxed at 3%, a long-term lease or rental is a written agreement to rent one or more vehicles to the same person for at least a year that is not a vehicle subscription. Taxed at 8%, a short-term lease or rental is any rental of one or more vehicles that is not a long-term rental or vehicle subscription. A short-term rental includes vehicle sharing services.