AN ACT to broaden the exemption from highway use tax for volunteer fire departments and rescue squads.

The General Assembly of North Carolina enacts:

SECTION 1.  G.S. 105‑187.6 reads as rewritten:

§ 105‑187.6.  Exemptions from highway use tax.

(a)        Full Exemptions. – The tax imposed by this Article does not apply when a certificate of title is issued as the result of a transfer of a motor vehicle:

…

(9)        To a volunteer fire department or volunteer rescue squad that is not part of a unit of local government, has no more than two paid employees, government and is exempt from State income tax under G.S. 105‑130.11, when the motor vehicle is one of the following:G.S. 105‑130.11.

a.         A fire truck, a pump truck, a tanker truck, or a ladder truck used to suppress fire.

b.         A four‑wheel drive vehicle intended to be mounted with a water tank and hose and used for forest fire fighting.

c.         An emergency services vehicle.

….

SECTION 2.  This act is effective for taxes imposed for taxable years beginning on or after July 1, 2026, and applies to certificates of title issued on or after that date.