NC is regularly ranked as one of the lowest taxed states in the US – #3 Lowest State and Local Business Tax Burden (Ernst & Young, 2015). One reason is the low property tax rates and reasonable valuations, including in Martin County.
The state of North Carolina levies income tax on individuals and businesses in North Carolina. Neither Martin County nor its municipalities levies an income tax.
Corporate income tax
An income tax is levied on the net taxable income of all corporations chartered in North Carolina or doing business in North Carolina, unless they are specifically exempt from tax. Net taxable income shall be the same as taxable income as defined in the Internal Revenue Code in effect for the income year for which the returns are to be filed, subject to the adjustments.
The state corporate income tax rate is 4.00% effective for taxable years beginning on or after 1-1-2016 and will be 3.00% for taxable years beginning on or after 1-1-2017.
In the case of a corporation which has business operations both within and without North Carolina, its net taxable income shall be allocated and apportioned to this State in accordance with state statutes.
Individual income tax
North Carolina taxable income is taxable income as calculated for federal income tax purposes, with certain adjustments. The North Carolina individual income tax rate is 5.75% (0.0575) for tax year 2016 and will lower to 5.499% (0.05499) for tax year 2017.
The State of North Carolina levies a sales and use tax at a rate of 4.75%. Martin County has a local sales and use tax rate of 2.25% making the total sales tax rate 7% in Martin County.
For more information on income or sales taxes, visit the NC Department of Revenue website at
The three main elements of the property tax system in North Carolina counties are real property, personal property, and motor vehicles. Real property consists of land and buildings. Personal property consists of tangible personal property or all personal property that is not intangible and is not permanently affixed to real property. Taxes are due on September 1 each year. Payment without interest may be made through January 5. Motor vehicles, if registered, are assessed according to its registration renewal date.
There is only one assessment in each county. The value as determined by the county assessor constitutes the base for all levies, including those of cities and towns on property located within the municipality. Property is to be assessed at 100% of appraised value. Although appraised value is to be “market value,” this standard is not always achieved for real property. This is largely because real property is required to be reappraised at least every eight years, although counties may choose to reappraise more frequently. Property appraised at market value at the time of reappraisal may appreciate or depreciate in the years between property tax reappraisals resulting in a tax appraised value that may be more or less than the current market value. Martin County’s last revaluation was effective January 1st 2009, at 100% of market value. A revaluation is currently underway and is expected to be effective January 1st 2017.
All taxable personal property in North Carolina is appraised at its true value in money. The two main exceptions are inventories owned by manufacturers, retailers, wholesalers, and contractors as well as non-business personal property. These types of personal property have been exempted by statute in North Carolina.
Any individual or business owning or possessing personal property used or connected with a business or other income producing purpose must file a Business Personal Property Listing Form. Business personal property includes: machinery, equipment, computers, furniture, fixtures, leasehold improvements, farm machinery, supplies, airplanes, construction in progress, certain vehicles, etc.
All business personal property listings are due on or before January 31st of each year. They must be filed with the Martin County Assessor’s Office. Any business that fails to list or under lists during the regular listing period and is discovered by the business personal property department, or lists late, is subject to a 10% to 60% penalty.
Motor Vehicle Property Taxes – “Tag & Tax Together”
In 2013, the North Carolina General Assembly passed a law to create a combined motor vehicle registration renewal and property tax collection system, transferring the responsibility for motor vehicle tax collection from the 100 counties across North Carolina to the Division of Motor Vehicles (DMV). Registration renewal notices combine the vehicle property tax that is due along with the plate renewal registration fee. The fees and taxes are listed separately, but both will be due at the same time. The total amount due on the combined notice will be payable to NCDMV.
Martin County Property Tax Rates 2016-17 Fiscal Year
[table id=11 /]