AN ACT TO MAKE TECHNICAL, CLARIFYING, AND ADMINISTRATIVE CHANGES TO THE REVENUE LAWS AND RELATED STATUTES. Summarized in Daily Bulletin 3/8/11, 6/9/11, 6/13/11, and 6/15/11. Enacted June 27, 2011. Effective June 27, 2011, except as otherwise provided.
Bill Summaries: S267 (2011-2012 Session)
Summary date: Jun 30 2011 - View summary
Summary date: Jun 15 2011 - View summary
Senate amendment makes technical changes to 2nd edition, as amended.
Summary date: Jun 13 2011 - View summary
Senate amendment makes the following changes to 2nd edition.
Amends GS 105-134.6(d)(8) to clarify the applicable deductions for taxpayers who made an addition under subdivisions (7)a. and (7)b. of subsection GS 105-134.6(d).
Amends GS 105-164.3(27) and (27b) to clarify the definitions for prepaid telephone calling service and prepaid calling service by deleting references to wireline calling service and wireline telecommunications service.
Amends GS 105-164.15A(a)(1) to provide that for a service provided and billed on a monthly or other periodic basis, a new tax or a tax rate increase applies to the first billing period that is at least 30 days after enactment and that starts on or after the effective date.
Adds new subsection (f) to GS 105-164.4B to specify when a purchaser is deemed to receive digital property.
Amends Section 8 of SL 2006-209 to provide that as applied to GS 20-79.4, the authority in GS 164-10 to reletter or renumber section subdivisions resides with the Legislative Services Office (was, with Legislative Drafting and Codification).
Summary date: Jun 9 2011 - View summary
Senate committee substitute makes the following changes to 1st edition.
Deletes Section 8 of the 1st edition.
Section 1 (was Section 16 in the 1st edition) amends GS 105-37.1(a)(1) in SL 2010-31, excluding amenities from general admissions receipts, to apply the exclusion retroactively.
Section 2a (new section) amends GS 105-113.4, governing the cigarette excise tax payment statute, to separately define affiliate as a person who directly or indirectly controls, is controlled by, or is under common control with another person (this definition previously included within the definition of integrated wholesale dealer); and to define affiliated manufacturer as a manufacturer licensed under GS 105-113.12 who is an affiliate of a manufacturer licensed under the same statute.
Section 2b (new section) amends GS 105-113.10, governing tax on tobacco products, to exempt a manufacturer from payment of cigarette tax on cigarettes that are manufactured by an affiliated manufacturer and temporarily stored at and shipped from its facilities.
Section 2c (new section) requires a distributor seeking a refund of cigarette taxes paid on cigarettes that have become stale or otherwise unsalable to return the cigarettes to the manufacturer or affiliated manufacturer to validate quantities and disposal of the cigarettes.
Section 3 is identical to Section 1 of the 1st edition.
Section 4 is identical to Section 2 of the 1st edition.
Section 5 (was Section 3 of the 1st edition) repeals both GS 105-130.4(t2) and GS 105-122(c1(3) (both provisions are obsolete).
Section 6 (new section) amends GS 105-41(a)(8) and (a)(9) to make conforming change to the real estate licensing law to repeal obsolete reference to real estate salesman (all licensees now referred to as real estate broker).
Section 7 (new section) amends GS 105-113.82(a) to delete obsolete definition of net amount that references a repealed statute.
Section 8 (new section) amends GS 105-125(b) to redefine the base for calculating franchise tax base from the basis to capital stock, surplus, and undivided profits base.
Section 9 (new section) amends GS 105-127(f) to specify statutory reference to Part 1 of Article 14 of GS Chapter 55.
Section 10 (new section) amends GS 105-228.8(e) deleting reference to obsolete taxes collected on contracts of insurance applicable to fire and lightning coverage.
Section 11 (new section) amends Section 4 of SL 2011-5 to clarify that changes in that act apply to estates of decedents dying on or after January 1, 2011.
Section 12 (new section) makes changes to provisions in Section 31A.1 of House Bill 200, amending personal taxes that become effective if H200 becomes law, including reenacting GS 105-134.1(19) that is repealed in Section 31A.1.(d) of H200.
Section 13 (new section) amends GS 105-134.6(d)(8) to delete references to net operating losses absorbed on the taxpayer’s federal returns for tax years 2003, 2004, 2005, and 2006.
Section 14 (new section) is reserved.
Section 15 (new section) amends GS 105-164.3 and GS 105-164.14A governing sales tax refunds available to motor sports teams for aviation fuel and tangible personal property that is part of a racing vehicle, and applies changes retroactively.
Section 16 (new section) amends GS 105-164.4(a)(3) to clarify exemption from sales tax for accommodations at schools or camps where the attendee pays to enroll at the school or camp.
Section 17 (new section) identical to Section 4 in 1st edition
Section 18 (was Section 5 of the 1st edition) amends various subsections of GS 105-164.13 to make technical changes to the names of state agencies and public assistance programs listed in the statute; clarifies that prosthetic devises exempt from sales tax are ones for human use; and that exempt installation changes must be separately stated on the invoice at the time of sale.
Section 19 is identical to Section 6 of the 1st edition.
Section 20 modifies Section 7 of the 1st edition to clarify that the changes to GS 105-164.14A apply retroactively to purchases made on or after January 1, 2011.
Section 21 is identical to Section 19 of the 1st edition.
Section 22 modifies Section 9 of 1st edition to clarify that taxpayer liability is calculated at applicable state and local tax rates.
Section 23 is identical to Section 18 of the 1st edition.
Section 24 (new section) clarifies the effective date of SL 2010-91 to make certain changes in that act effective retroactively to sales made on or after October 1, 2007.
Section 25 (new section) makes technical clarifying changes to GS 105-164.6(c) and 105-187.52.
Section 26 (new section) clarifies that taxes for which a refund is allowed are not considered to be an overpayment of tax and does not accrue interest.
Section 27 (new section) amends GS 105-164.15A(a)(1) to clarify that the effective date of a tax change for taxable services that are billed on a monthly basis applies to the first billing period that starts on or after the effective date of the change.
Section 28 (new section) amends GS 105-164.28 to make technical change of the term certificate of resale to the term certificate of exemption.
Section 29 (new section) repeals obsolete GS 105-164.41.
Section 30 is identical to Section 10 of the 1st edition.
Section 31 is identical to Section 11 of the 1st edition.
Section 32 is identical to Section 12 of the 1st edition.
Section 33 is identical to Section 13 of the 1st edition.
Section 34 is identical to Section 21 of the 1st edition.
Section 35 (new section) repeals GS 105-256(a)(7).
Section 36 is identical to Section 16 of the 1st edition.
Section 37 (new section) amends GS 105-228.90(a) to ensure that the definition of person for purposes of the Debt Setoff Collection Act of GS Chapter 105A and for tax purposes under GS Chapter 105 are the same.
Sections 38 and 39 (new sections) are reserved.
Section 40 (new section) amends GS 105-330.4 by adding a new subsection (d) to clarify that property tax payments on registered motor vehicles are deemed to be received as of the postmark date or, if there is no postmark, when the payment is received in the office of the tax collector.
Section 41 is identical to Section 20 of the 1st edition.
Section 42 (new section) clarifies the effective dates of changes in collection of motor vehicle property tax enacted in previous sessions.
Sections 43 and 44 (new sections) are reserved.
Section 45 is identical to Section 14 of the 1st edition.
Section 46 is identical to Section 17 of the 1st edition.
Section 47 (new section) amends GS 58-70-35(a) and GS 143-143.10(a) to require fees paid under those statutes be credited to the Insurance Regulatory Fund established under GS 58-6-25.
Sections 48 and 49 (new sections) are reserved.
Section 50 (new section) makes the act effective when it becomes law unless otherwise specified.
Summary date: Mar 8 2011 - View summary
Identical to H 122, filed 2/16/11.
Repeals GS 105-120.2(f) (regarding determining total tax payable by any holding company) and GS 105-130.4(t2) (regarding alternative apportionment method for certain corporations meeting investment requirements).
Definitions. Amends GS 105-129.50 to add the definition of development tier area one as defined in GS 143B-437.08. Makes technical change to GS 105-164.4C(h)(5), defining postpaid calling service to replace the term prepaid wireline telephone with prepaid telephone. Amends GS 105-164.14B(a) (regarding certain industrial facilities refunds) to add definitions for paper-from-pulp manufacturing and turbine manufacturing. Defines owner to include a lessee in a lease-to-purchase contract. Amends GS 105-228.90(b) to add a definition for NAICS: North American Industry Classification System (NAICS), adopted by the U.S. Office of Management and Budget. Makes conforming changes to GS 105-129.81(13) and (18). Amends GS 105-333(14) to clarify that the definition of public service company in the property tax statutes does not include mobile telecommunication service.
Retail sales and use tax. Amends GS 105-164.13(12) to clarify that the sales tax exemption applies to prosthetic devices for human use. Amends GS 105-164-13D(a) to remove geothermal heat pumps from the list of items entitled to the Energy Star sales tax exemption.
Economic Incentive Refunds. Rewrites GS 105-164.14A to set the sunset date for sales tax refunds for fuel sold to passenger air carriers and motorsports teams as January 1, 2013 (was, January 1, 2011). Amends GS 105-164.14B(b)(1) to identify facilities primarily engaged in paper-from-pulp manufacturing and turbine manufacturing as industrial facilities that meet the business, minimum investment, and industry specific requirements of the section and are therefore allowed an annual refund of sales and use tax paid on specified materials.
Refund of Overpayment of Tax. Amends GS 105-228.37 to clarify the refund process for a taxpayer who makes an overpayment under GS Chapter 105, Article 8E, Excise Tax on Conveyances. Eliminates the requirement that a board of county commissioners must conduct the refund request hearing in accordance with the procedures that apply to a hearing held by a board of equalization and review on an appeal regarding the listing or appraisal of property. Establishes the timeline for filing a refund request, setting a hearing date, and providing notice to the taxpayer. Provides process if the refund is granted and if the refund is denied. Provides that when the board of commissioners determines that no refund is due, the board must inform the taxpayer through its written decision of the taxpayer's right to request a Departmental review (was, judicial review) of the denial of the refund in accordance with GS 105-241.11. Amends GS 105-228.30(b) to require each county finance officer to credit one-half of the tax proceeds to the county's general fund and to remit the remaining one-half of the proceeds, minus the taxes refunded and the county's allowance for administrative expenses, to the Department of Revenue of a monthly basis.
Penalties. Amends GS 105-236(a)(2) to provide that the Secretary of Revenue (Secretary) may assess a penalty of $1,000 for failure to obtain a license prior to engaging in a business, trade, or profession in which a license is required only if the taxpayer fails to obtain a license after receiving written notification of the need to do so from the Department of Revenue.
Publications and Disclosure. Amends GS 105-256(a)(9) to delete the requirement that the Secretary redact identifying information for a taxpayer in a contested tax case from the final decision prior to publication of that decision. Reconciles GS 105-259(a)(9) with the publication provisions under GS 150B-31.1. Makes a conforming change to GS 105-259, replacing the term report with publication. Repeals GS 150B-21.17(a)(5) (required the publication of orders of the Tax Review Board in the North Carolina Register).
Sales Tax. Under current law, the sales tax imposed under the First One-Cent (1¢) Local Sales and Use Tax Act (GS Chapter 105, Article 39) limits application of the tax only to state taxable sales under GS 105-164.4 that are specifically included in subsection (a) of GS 105-467. Amends GS 105-467(a) to provide that the subsection applies to all taxable sales and gross receipts subject to the general rate of sales tax imposed by the state under GS 105-164.4.
Time Limit. Amends GS 105-241.9(b) to clarify that a waiver by a taxpayer of a statute of limitations for a proposed assessment must be executed before the statute of limitations expires.
Miscellaneous. Amends Section 24.18(g) of SL 2006-66 regarding various oyster tax shell credits to extend the sunset date on those provisions to January 1, 2013 (was, January 1, 2011).
Amends Section 31.7(e) of SL 2010-31 to change the effective date for GS 105-37.1(a)(1) as amended (provides for the exclusion of amenities from general admission receipts for determination of the privilege tax) to February 1, 2009 (was, August 1, 2010).
Amends Section 8 of SL 2006-209 to remove the sunset date (was, July 1, 2011) from the provision that authorizes the Codifier of Statutes to renumber the subdivisions in GS 20-79.4(b) (the special license plates statute) in sequential and alphabetical order and to eliminate mixed number-letter subdivision designations.
Provides that a facilitator (entities that enter into a contract with providers of accommodations to market and collect payment for accommodation rentals) is not liable for an over-collection or under-collection of sales tax or local occupancy tax during the period from January 1, 2011, through April 1, 2011, as the result of the change under Section 31.6 of SL 2010-31 regarding a facilitator's collection and remittance obligations under GS 105-164.4(a)(3), 153A-155(c), and 160A-215(c).
Amends GS 105-164.16(d) to clarify the items on which the use tax is payable.