NC H537

Creates a new 5% tax rate on vehicle subscription gross receipts, reducing the previous treatment that taxed subscriptions at the same rate as short-term leases (8%)

Defines "vehicle subscription" as a written agreement granting exclusive use of an agreed-upon number of motor vehicles with exchange rights for a subscription fee, excluding vehicle sharing services

Establishes three tax rates under the alternate highway use tax: 8% for short-term leases or rentals, 5% for vehicle subscriptions, and 3% for long-term leases or rentals

Allocates taxes collected at the 5% rate on vehicle subscriptions and the 8% rate on short-term rentals by crediting $10,000,000 annually to the Highway Fund and the remainder to the General Fund

Becomes effective October 1, 2019, and applies to vehicle subscription agreements entered into on or after that date