The state of North Carolina gives municipalities the right to collect a municipal vehicle tax. On July 1, 2018, the Town Council approved raising the vehicle tax from $5 to $30 annually per car. Why did the Council decide to do this? Because the infrastructure of our community defines our community. You can become known for things. Clayton has some bad streets and the rate of decline is increasing. How do we get the revenue to pay for those streets? One way is to tax the cars that drive on them. The $30 annual fee is the maximum allowed by North Carolina law, and it would generate $375,000 in its first year. And what's most important, this money is restricted and must be used for street improvement projects. Analysis from a recent study addressing Clayton's deteriorating streets estimated the Town needs to spend $1 million a year to keep our streets up. With roughly $500,000 from the state Powell funds, that leaves about half a million more for the town to cover every year. A $25 increase equates to less than 7 cents a day to help keep our busy roads safe and smooth. If you'd like, bring in your vehicle tax receipt and we'll give you a custom Town of Clayton license plate for the front of your vehicle. Just come to the Customer Service area in Town Hall, 111 East 2nd Street.