Adds new Article 6, Facilitation of Rapid Response by Businesses to States of Emergency, to GS Chapter 166A to provide a limited exemption for out-of-state businesses performing disaster or emergency-related work during the applicable disaster periodfrom anyNorth Carolina taxes andlicensing or registration requirements. The exemptionis from (1) all state or local business licensing or registration requirements; (2)state and local taxes or fees, including: unemployment insurance,state or local occupational licensing fees,sales and use tax,ad valorem tax on equipment used or consumed during the disaster period; or (3) Secretary of State licensing and regulatory requirements.
Also provides a limited exemption for out-of-state employeesperforming disaster or emergency-related work during the applicable disaster period from income taxes and other state or local taxes as specified in this Article.
Makes an exception to require out-of-state businesses and out-of-state employees to pay transaction taxes and fees, unless those taxes are otherwise exempted during the applicable disaster period.
Provides that this section does not apply after the disaster period expires and any out-of-state business or employee electing to remain in North Carolina after the applicable disaster period will be subject to the state's normal standards for establishing presence, residency, or doing business in the state.
Requires an out-of-state business entering the state to perform disaster or emergency-related work to provide notice to the Department of Revenue of its presence for those purposes on a form as prescribed by the Secretary of Revenue. Also requires a business registered in this state to provide the same required notice for any affiliate of that registered business that enters the state as an out-of-state business. Directs the Department of Revenue to adopt rules implementing the provisions of this Article.
Defines the following terms as they apply in this Article: (1) disaster or emergency-related work, (2) disaster period, (3) infrastructure, (4) out-of-state business, (5) out-of-state-employee, (6) registered business, and (7) state of emergency.
Amends GS 55-15-01 to extend the provisions of proposed Article 6 to apply toforeign corporations and provide that a foreign corporation is not considered to be transacting business in this state if it engages in providing disaster or emergency-related relief during the applicable disaster period. Amends GS 57C-7-02 to extend the provisionsof Article 6 to also apply to a foreign limited liability corporation.
Makes conforming changes to GS 105-125(a) (tax exemptions), GS 105-130.16 (returns), andGS 105-152 (income tax returns). Effective for taxable years on or after January 1, 2013.Makes a conforming change to GS105-275 (property excluded from the tax base), effective for taxes imposed for taxable years beginning on or after July 1, 2013.
Includes a series of whereas clauses stating the policy reasons that are the impetus for this act.
Except as otherwise provided, this act is effective when it becomes law.
Status: Ref To Com On Finance (House Action) (Mar 20 2013)
Bill H 335 (2013-2014)Summary date: Mar 19 2013 - More information