AN ACT TO MAKE TECHNICAL CHANGES TO THE REVENUE LAWS. Enacted June 21, 2017. Effective June 21, 2017, except as otherwise provided.
Bill Summaries: H59 (2017-2018 Session)
Summary date: Jun 21 2017 - View summary
Summary date: Feb 20 2017 - View summary
House committee substitute makes the following changes to the 1st edition.
Amends proposed changes to GS 105-164.3, concerning the definitions as used in Article 5 of GS Chapter 105 (Sales and Use Tax), to update the definition of Streamlined Agreement to mean the Streamlined Sales and Use Tax Agreement as amended as of December 16, 2016 (was, May 4, 2016).
Amends proposed changes to GS 105-41(a)(11) to refer to a funeral director, an embalmer, or a funeral service licensee (previously did not include a funeral service licensee) as those licensees required to pay the $50 tax under the statute.
Amends GS 105-499.81 to impose an excise tax on the motor fuel rate on fuel grade ethanol or biodiesel fuel that is imported to this State by means of a transport truck, a railroad tank car, a tank wagon, or by marine vessel (was, imported to this State outside the terminal transfer system; conforms to proposed changes to GS 105-449.60). Amends GS 105-449.115(d)(3), concerning the duties of a transporter of motor fuel, to provide that the Secretary of Revenue can designate the manner by which the Secretary is notified and receives confirmation numbers for motor fuel diversions.
Summary date: Feb 8 2017 - View summary
Part I: Income and Franchise Tax Changes
Amends GS 105-228.90(b)(1b) to update the definition for Code, as the term is used in Article 9 of GS Chapter 105 (Taxation: General Administration; Penalties and Remedies) to mean the Internal Revenue Code as enacted as of January 1, 2017 (was, 2016).
Makes technical changes to GS 105-122 (Franchise or privilege tax on domestic and foreign corporations).
Makes clarifying changes to GS 105-129.96, concerning credit a taxpayer may receive for constructing a railroad intermodal facility placed in service in this state during a taxable year. Further, prohibits a credit under this statute to the extent the eligible railroad intermodal facility was provided by public funds. Adds a new subsection to prohibit a taxpayer from taking the credit allowed under the statute for an eligible intermodal railroad facility the taxpayer leases from another, unless the taxpayer gets the lessor's certification that the lessor will not claim a credit under GS Chapter 105 with respect to the same facility. Effective for taxable years beginning on or after January 1, 2017.
Amends GS 105-130.20 to require a taxpayer to file an income tax return with the Secretary reflecting the corrected or determined taxable income within six months of a taxpayer's notification of a federal taxable income or federal tax credit that affects the amount of State tax payable is corrected or otherwise determined by the federal government (previously, only specified corrections to federal taxable income).
Amends GS 105-159 to require a taxpayer to file an income tax return with the Secretary reflecting the corrected or determined adjusted gross income or federal tax credit that affects the amount of State tax payable within six months of notification of a taxpayer's adjusted gross income, filing status, personal exemptions, standard deduction, itemized deductions, or federal tax credit that affects the amount of State tax payable is corrected or otherwise determined by the federal government (previously, only specified corrections to adjusted gross income or federal tax credit that affects the amount of State tax payable).
Part II: Sales Tax Changes
Amends GS 105-164.3, concerning the definitions as used in Article 5 of GS Chapter 105 (Sales and Use Tax), to eliminate the definition for the term protective equipment. Updates the definition of Streamlined Agreement to mean the Streamlined Sales and Use Tax Agreement as amended as of May 4, 2016 (was, September 15, 2015).
Current law, GS 105-164.6(f), sets out two circumstances that require a person to obtain a certificate of registration by wholesale merchants, retailers, and facilitators, in accordance with GS 105-164.29. Amends the second circumstance to require a person to obtain a certificate of registration if the person is a facilitator liable for tax under Article 5 of GS Chapter 105 (was, pursuant to GS 105.164.4F). Makes conforming, technical, and clarifying changes to GS 105-164.29. Amends GS 105-164.29(c) to establish that a certificate of registration issued to a seller that contracts with a certified service provider under GS 105-164.42I and that is a model seller as defined by the Streamlined Agreement does not become void if the certified service provider files returns for the seller showing no sales for a period for which a certificate could become void under this statute.
Amends GS 105-164.14A(a) to provide that the allowable refund of the sale and use tax for aviation fuel used by motorsports teams or sanctioning bodies to travel to or from motorsports events includes aviation gasoline or jet fuel.
Part III: Excise Tax Changes
Makes technical change to GS 105-41(a)(11) to refer to a funeral director (was, a mortician) as required to pay the $50 tax under the statute.
Makes technical and clarifying changes to GS 105-113.29 (Unlicensed place of business).
Amends GS 105-449.37 to update the definition of International Fuel Tax Agreement, as the term is used in Article 36B of GS Chapter 90 (Tax on Carriers Using Fuel Purchased Outside State) to mean the Articles of Agreement adopted by the International Fuel Tax Association, Inc., as amended as of January 1, 2017 (was, July 1, 2013). Makes technical and clarifying changes.
Makes the following changes to GS 105-449.60, the definitions applicable to Article 36C of GS Chapter 105 (Gasoline, Diesel, and Blends). Defines biodiesel provider to include a person who imports biodiesel (was, imports biodiesel outside the terminal transfer system) by means of a transport truck, a railroad tank car, a tank wagon, or a marine vessel (previously, did not include a marine vessel). Makes identical changes to the definition of fuel alcohol provider. Adds the term bulk storage and defines the term to mean a container or tank used to store bulk purchases of motor fuel or alternative fuel of 42 gallons or more. Defines diversion to mean the movement of motor fuel to a state (was, from a terminal to a state) other than the destination state indicated on the original bill of lading. Defines gasoline to include a petroleum product component of gasoline, listed in Treasury Regulation Section 48-4081-1(c)(3) as of January 1, 2017, that can be blended for use in a motor fuel (previously, did not refer to Treasury Regulation or include ability to blend for use in motor fuel). Removes a refiner from the definition of supplier. Limits the definition of system transfer to a transfer of motor fuel within the terminal transfer system (previously, also included a transfer by transport truck or railroad tank car of fuel grade ethanol).
Amends GS 105-449.65(b) to establish that a person who is licensed as a supplier (was, a supplier and is a biodiesel provider) is considered to have a license as a blender in the context of the exceptions from the requirement to obtain separate licenses for each activity when conducting multiple activities.
Eliminates the requirement in GS 105-449.69(e) that an applicant for a license as an exporter must designate an agent located in the state for service of process and give the agent's name and address.