North Carolina consumers would have to pay more than double the current tax on the purchase of a new car or truck under a tax increase proposal introduced to the state senate last week.

Senate Bill 1201, introduced by state Sen. Dan Clodfelter (D-Charlotte), would raise the Highway Use Tax on a new vehicle from the current 3 percent to 6.75 percent.

If passed, the tax would raise an estimated $900 million annually for the state's Highway Trust Fund.

Not surprisingly, the bill already has a growing list of opponents. The bill's one known supporter, Sen. Clodfelter, could not be reached for comment.

"To ask North Carolinians to pay an additional $900 million in taxes each year would add approximately $20 to each consumer's monthly car payment," North Carolina Automobile Dealers Association President Robert Glaser said.

"This proposal represents the single largest tax increase on car and truck consumers in North Carolina's history."

In addition to raising the tax rate at the point of sale, the bill would also raise the short-term lease and rental tax to 8 percent and the long-term lease tax to 6.75 percent.

More troubling to consumers, however, is the fact that the bill would do away with the current trade-in deduction on new cars and trucks.

"It's going to do away with people paying the tax on just the difference after the trade," Chevrolet dealer Rickie Day of Coats said. "If a car is worth $50,000 and you have a $20,000 trade in, that's still going to be a tax of $3,375."

"You'll be paying the 6.75 percent on the straight-out purchase," he said.

Mr. Day said he and other dealers want to get the word out on the tax so people will contact their local state senators and representatives.

"North Carolina already has one of the highest taxes on gasoline in the nation, and now we're just going to be hit with another tax? I just don't know how we're going to take any more," he said.

"I just think it's going to hurt every working class person out there and it's going to put a lot of them out of reach or buying a car," he said.

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