Is NC State exempt from tax paid on the lease or rental of motor vehicles? No. The tax paid on the lease or rental of motor vehicles is considered a highway use tax and is not subject to the exemption. Read more: Frequently Asked Questions about Sales TaxSales and Use Tax Updated on December 9, 2022 Tagged: highway use taxsales and use taxsales tax scope Was this article helpful? Yes No Need Support?Can't find the answer you're looking for?Contact Support