LOCAL SALES TAX OPTIONS/ECON. DEVPT. CHANGES (NEW).

View NCGA Bill Details2013-2014 Session
House Bill 1224 (Public) Filed Tuesday, May 27, 2014
A BILL TO BE ENTITLED AN ACT TO LIMIT THE TOTAL LOCAL GOVERNMENT SALES AND USE TAX RATE TO TWO AND ONE‑HALF PERCENT; TO GIVE COUNTIES THE FLEXIBILITY TO USE UP TO ONE‑HALF PERCENT OF THE LOCAL SALES AND USE TAX FOR PUBLIC TRANSPORTATION, FOR PUBLIC EDUCATION, FOR GENERAL PURPOSES, OR FOR A COMBINATION THEREOF; AND TO MAKE VARIOUS CHANGES TO TAX AND ECONOMIC DEVELOPMENT LAWS.
Intro. by Presnell.

Status: Conf Report Failed (House Action) (Aug 19 2014)

SOG comments (1):

Short and Long Title Changes

Senate committee substitute to the 1st edition makes changes to the short and long titles. The original titles are as follows:

JMAC DEVELOPMENT FUND MODIFICATIONS.

AN ACT TO MODIFY THE JOB MAINTENANCE AND CAPITAL DEVELOPMENT FUND PROVISIONS.

Bill History:

H 1224

Bill Summaries:

  • Summary date: Aug 1 2014 - More information

    The conference report makes the following changes to the 4th edition.

    Amendssubsection (b) of proposed GS 105-506.4(GS Chapter 105, Article 43, Part 1) to provide that regardless of subsection (a), which limits the rate of the local sales and use tax to a maximum of 21/2 percent, the local sales and use tax rate may exceed 2 1/2 percent if all of the conditions specified in subsection (b) are met. However, in no event may a county's local sales and use tax rate be more than 2 3/4 percent. Specifies the following conditions, all of which must be met, for a county's tax rate to permissibly exceed 2 1/2 percent: (1) the county is Durham, Forsyth, Guilford, Orange, Mecklenburg or Wake; (2) the county levies a tax authorized under Part 2 of Article 43 of GS Chapter 105 or the county levies a tax at the rate of 1/2 percent under Part 5 of Article 43 of GS Chapter 105, or the county is part of a special district authorized to levy a tax under Part 4 of Article 43 of GS Chapter 105; and (3) the county has conducted one or more advisory referendums on or before December 31, 2014, in which a majority of the voters approved the levy of a local sales and use tax rate of 1/4 percent under Article 46 of GS Chapter 105.

    Adds new subsection (c) to proposed GS 105-506.4 to provide that if the tax levied under Article 43 or Article 46 of GS Chapter 105 is repealed, and the repeal results in a decrease of the local sales and use tax rate to less than 2 3/4 percent in a county that is listed in subdivision (b)(1) of GS 105-506.4, as amended in this edition, the county may not enact a local sales and use tax rate under this Subchapter that is more than 2 1/2 percent.

    Amends GS Chapter 105, Article 46, One-Quarter Cent (1/4) or One-Half Cent (1/2) County Sales and Use Tax Act, addingsubsection (e) to GS 105-537 to provide that regardless of theprovisionsof subsection (a), which requires a tax levied under Article 46 to be approved in a referendum and that the applicable rate meet specified conditions, the local sales and use tax rate in the counties of Durham, Forsyth,Guilford, Orange, Mecklenburg, and Wake may exceed 2 1/2 percent if all of the conditions listed in this subsection are met. Prohibits the local sales and use tax rate in these counties from exceeding 2 3/4 percent. Provides specified conditions that are identical to those listed in subsection (b) ofproposed GS 105-506.4. Provides that Durham and Orange counties levy a local sale and use tax at the rate of 2 3/4 percent as of August 1, 2013. Also provides that as of August 1, 2014, Forsyth, Guilford,Mecklenburg, and Wake Countieslevy a local sales and use tax at the rate of 2 1/2 percent or less but are authorized to levy the tax at a rate of up to 2 3/4 percent.

    Enacts new subsection (f)to GS 105-537 to provide that if the tax levied under Article 43 or Article 46 of GS Chapter 105 is repealed, and the repeal results in a decrease of the local sales and use tax rate to less than 2 3/4 percent in a county that is listed in subsection (e) of GS 105-537, the county may not enact a local sales and use tax rate under this Subchapter that is more than 2 1/2 percent.

    Under current law, GS 158-7.1 authorizes each county and city in this state to makeappropriations, funded by the levy of property taxes under GS 153A-149 and GS 160A-209,for the purpose of aiding and encouraging local development. Amends subsection (b) of GS 158-7.1 to expand the list of activities in the subsection that may be funded by the levy of property taxesunder GS 153A-149 and GS 160A-209 to include authorizing a county or city toprovidegrants or loans for the rehabilitation ofunderutilized mills, other industrial structures, or historic structures.

    Directs the Revenue Laws Study Committee (Committee) to conduct an economic analysis of rehabilitating both income-producing and non-income producing historic structures, including historic mill property. Requires the Committee to report its findings, along with any legislative recommendations, to the Regular Session of the 2015 General Assembly upon its convening. Lists topics and issues that may be examined in the study.

    Amends GS 96-4(x) regarding the confidentiality of unemployment compensation information. Defines confidential informationas the term is used in this section, to mean any unemployment compensation information in the records of the Division of Employment Security (DES) applicable to the administration of the Employment Security Law required to be kept confidential under 20 CFR Part 603. Includes any claim information and any other information that could reveal the name or identifying particulars about any past or present employer oremployingunit or that could beforeseeablycombined with other information publicly available that could be usedto reveal any such particulars.

    Exempts confidential information from the public records disclosure requirements of GS Chapter 132. Specifies that confidential information may only be disclosed as permitted in this subsection. Clarifies that any disclosure or re-disclosure of confidential information must be consistent with 20 CFR Part 603. Provides that DES may disclose final decisions and the records of hearings that led to those decisions only after the expiration of the appeal rights as provided under GS 96-15.

    Amends Section 7.2(a) and 7.3 of SL 2014-3, concerning retailer-contractors, providing clarification that the act does not affect any interpretation of a statute which is the subject of a state tax audit for taxable years beginning before January 1, 2015, as well as clarifying that the changes that are effective January 1, 2015, apply to withdrawals of items from inventory for contracts entered into on or after that date.

    Amends Section 8.1(c) of SL 2014-3, effective June 1, 2014, clarifying that a retailer of a rental of a private residence, cottage, or similar accommodation, which is rented for fewer than 15 days in a calendar year and listed with a real estate broker or agent, is liable for any over-collection of sales tax or occupancy tax for any such rental that is occupied or available to be occupied for nights beginning June 14, 2012, and ending June 30, 2013, and must remit the tax collected. Also provides that a retailer is not liable for an undercollection of sales tax or occupancy tax for such rental which is occupied or available to be occupied between June 1, 2014, and June 30, 2014, if a good-faith effort to comply with the law was made. Deletes language which states the section applied during June 14, 2012, and July 1, 2014.

    Repeals Section 14.26 of SL 2014-3, concerning the definition of anincome year.

    Amends GS 105-113.35(d), effective June 1, 2015, to provide that a manufacturer who ships vapor products to either a wholesale dealer or retail dealer can apply to the Secretary of Revenue to be relieved of paying the tax imposed by this section on those vapor products.

    Amends GS 105-129.16A, concerning tax credits for investing in renewable energy property, providing that a taxpayer that has constructed, purchased, or leased renewable energy property is allowed a credit equal to 35 percent of the cost of the property if the property is placed in service in North Carolina during the taxable year.

    Amends Section 1.1(a) of SL 2014-3, concerning federal taxable income deductions, making a clarifying change.

    Amends GS 105-134.6A, concerning definitions for provisions concerning the decoupling from federal accelerated depreciation, making organizational changes and setting out and defining the termowner in a transferor. Effective for taxable years beginning on or after January 1, 2013.

    Amends GS 105-153.6, concerning definitions for provisions concerning the decoupling from federal accelerated depreciation, making organizational changes and setting out and defining the termowner in a transferor. Effective for taxable years beginning on or after January 1, 2014.

    Prohibits the Secretary of Revenue from imposing interest with respect to an underpayment of income tax to the extent that the underpayment was created or increased by the changes in Section 2.2 of SL 2014-3. Provides that a withholding agent is not liable for the amount of tax the agent fails to withhold to the extent the amount not withheld was created or increased by those same changes. Effective when the section becomes law and apples to taxable years beginning on or after January 1, 2014, and before January 1, 2015, and to payroll periods beginning on or after January 1, 2014, and before January 1, 2015.

    Amends GS 105-164.3(35), making technical changes and adding new language that provides that a person, other than a facilitator, required to collect the tax levied under GS 105-164.4(a) is defined as aretailerfor the purposes of GS Chapter 105, Article 5.

    Amends GS 105-164.4G, clarifying that the sale at retail and the use, storage, or consumption in North Carolina of specified gross receipts from an entertainment activity admission charge are exempt from the tax imposed by GS Chapter 105, Article 5 (previously, did not include the sale at retail and the use, storage, or consumption language). Clarifies that an admission charge (was, admission) to an entertainment activity is sourced to the location where admission to the activity may be gained by person.

    Amends GS 105-164.13, Retail sales and use tax, adding piped natural gas to exemptions detailed in GS 105-164.13(8a), (10), and (57). Effective July 1, 2014.

    Amends GS 105-164.13E, as amended by SL 2014-3, to add piped natural gas to the list of tangible personal property, digital property, and services that are exempt from sales and use tax if purchased by the qualifying farmer for use in farming operations. Defines the term taxable yearas having the same meaning as defined in GS 105-153.3.

    Amends Section 3.1(d) of SL 2014-3 to provide a person who has an agricultural exemption certificate number issued before July 1, 2014, meeting the requirements of GS 105-164.13E for a qualifying farmer should apply for a new agricultural exemption certificate number before July 1, 2014, for use for qualifying purchases made on or after January 1, 2015 (was, October 1, 2014). Makes conforming changes.

    Amends GS 105-164.16A, as enacted by SL 2014-3, creating a subsection (a) and adding a new subsection (b). Amends subsection (a) to provide a retailer (was, taxpayer) that offers (was, that offers to sell)a prepaid meal plan subject to the tax imposed by GS 105-164.4 an option as to how the sales tax will be remitted to the Secretary of Revenue (Secretary) and a return filed under GS 105-164.16. Provides that when a retailer enters into an agreement with a food service contractor who agrees to provide food under a prepaid meal plan, and the food service contractor is also a retailer under this Article, then the retailer may include in the agreement that the food service contractor is liable for reporting (was, collecting) and remitting the sales tax due on the gross receipts from the prepaid meal plan on the behalf of the retailer. Directs that tax payments received by a food service contractor from a retailer are held in trust by the food service contractor for remittance to the Secretary. Requires a food service contractor to remit the amount of a tax payment received from a retailer to the Secretary. Provides that a food service contractor is not liable for tax due but not received from a retailer. Makes a retailer liable for the tax due on the gross receipts derived from a prepaid meal plan if the retailer fails to send the tax due to the food service contractor. Enacts new subsection (b) of GS 105-164.16A to add provisions regarding the basis of reporting gross receipts derived from a prepaid meal plan.

    Amends GS 105-164.20 to require a retailer of electricity, telecommunications service, piped natural gas, and prepaid meal plans to report its sales on an accrual basis (was, retailers of electricity and telecommunications service must report sales on an accrual basis) for the purposes of this Article. Provides that the tax on the sales price or gross receipts derived from the sale accrues when the retailer bills its customer for the sale or gross receipts (was, for the sale).

    Amends GS 105-164.29(a), as amended by Section 14.9(b) of SL 2014-3, to provide that a certificate of registration must be signed by a manager, member, or company official (was, partner) if the owner is a limited liability company (was, if the owner is an association, a partnership, or a limited liability company). Provides that if the owner is a partnership, the certificate of registration must be signed by a manager, member, or partner.

    Amends GS 105-241.6(b)(5) to make clarifying and organizational changes regarding exceptions to the general statute of limitations for obtaining a refund of an overpayment in the case of a contingent event.

    Amends GS 105-338(c), as amended by Section 11.1(e) of SL 2014-3, regarding the allocation of appraised valuation of public service property among local taxing units. Deletes the appraised valuation of the tangible personal property of a mobile telecommunications company from the tangible personal property that is appraised under the provisions of this subsection. Instead provides for the appraised valuations of the tangible personal property of mobile telecommunications companies pursuant to GS 105-339 as amended by Section 11.1(f) of SL 2014-3. Effective for taxes imposed for taxable years beginning on or after July 1, 2015. Makes a technical change.

    Repeals Section 11.1(g) of SL 2014-3 regarding certification of appraised valuations of mobile telecommunications companies.

    Enacts new subsection (b) to GS 160A-206. Prohibits a city from imposing a license, franchise, or privilege tax on a person engaged in any of the following businesses: (1) supplying piped natural gas, (2) providing telecommunications service taxed under GS 105-164.4(a)(4c), (3) Providing video programming taxed under GS 105-164.4(a)(6), and (4) providing electricity. Provides that these businesses are either subject to sales tax at the combined general rate for which the city receives a share of the tax revenue or they are subject to the local sales tax. Enacts new subsection (b) to GS 153A-146 to prohibit a county from imposing a license, franchise, or privilege tax on a person engaged in any of the businesses as listed in new subsection (b) of GS 160A-206.

    Clarifies that the Department of Revenue can draw the funds needed from sales tax to make distributions of the repealed franchise tax on electricity and excise tax on piped natural gas, specifically the September 15, 2014, distributions, for the calendar quarter that begins April 1, 2014, to cities under GS 105-116.1 and GS 105-187.44.

    Amends GS 105-153.3 and GS 105-153.5(a)(1), to add and define the termsurviving spousefor the purposes of theIndividual Income Tax Act and to add that term to the standard deduction amount table in GS 105-153.5(a)(1).Effective for taxable years beginning on or after January 1, 2014.

    Amends GS 105-134.1 and GS 105-134.6(a2) to add and definesurviving spouseand add it to the standard deduction table found in GS 105-134.6(a2). Effective retroactively for taxable years beginning on or after January 1, 2012, and before January 1, 2014.

    Amends GS 105-164.13B(a)(4) to delete a reference to a previously repealed statute. Adds language defining, for the purpose of the subdivision, arelated person,meaning a person described in one of the relationships set out in section 267(b) or 707(b) of the Tax Code.

    Includes a severability clause. Makes conforming changes to the bill title.

     


  • Summary date: Jul 31 2014 - More information

    The conference report, which makes changes to the 4th edition, is to be summarized.


  • Summary date: Jul 24 2014 - More information

    Senate amendment #4 makes the following changes to the 3rd edition, as amended. 

    Further amends GS 143B-437.52(a), effective July 1, 2015, to delete the provision in the grant agreement conditions that allowed the Economic Investment Committee to disregard the Job Catalyst Fund award in determining whether a grant is appropriate for the project if the total costs of the project to the State outweigh the benefits as a result of an award from the Job Catalyst Fund.

    Makes a clarifying change to the required wage standard for grants from the Job Catalyst Fund in GS 143B-437.67(a)(5).

    Makes technical changes.


  • Summary date: Jul 23 2014 - More information

    Senate amendment makes the following changes to the 3rd edition.

    Amends GS 143B-437.55, enacting a new subsection (c1) that requires the Economic Investment Committee, which administers the Job Development Investment Program (Program), to report electronically on the Program on the last day of each month other than the month of April. Specifies that when the General Assembly is in session, the reports due during that time are to go to the House of Representatives Finance Committee, the Senate Finance Committee, and the Fiscal Research Division. Provides that when the legislature is not in session, the reports are to be submitted to the Revenue Laws Study Committee and the Fiscal Research Division. Specifies the information and data that the monthly reports are to contain.


  • Summary date: Jul 22 2014 - More information

    Senate committee substitute makes the following changes to the 2nd edition.

    Deletes language which prohibits a tax levied under new Article 43A of GS Chapter 105,County Sales and Use Tax for Public Education from being in effect in a county at the same time as a tax levied under Article 43 of GS Chapter 105,Local Government Sales and Use Taxes for Public Transportation. Declares that Articles 43, 43A, and 46 of GS Chapter 105 provide the counties of this state with an opportunity for additional source of revenue (was, Articles 43 and 43A). Allows a county to choose to use this source of revenue to finance local public transportation systems, as provided in Article 43, for public education needs, as provided in new Article 43A, and for general purposes, as provided in Article 46 of GS Chapter 105 (was, permitted use of the revenue source to finance local public transportation systems or public education needs).

    Makes conforming changes to GS 105-506.

    Replaces new GS 105-506.3 with GS 105-506.4. Amends GS 105-506.4 to provide that the local sales and use tax levied under Article 43 of GS Chapter 105 must be at a rate that would not result in a total local sales and use tax rate in the county (was, in the county or special district) that exceeds 2 1/2%. Makes technical corrections, replacing occurrences of GS 105-506.3 with GS 105-506.4.

    Amends Part 1 of Article 43 of GS Chapter 105, as amended by this act, and again enacts new subsection GS 105-506.3 to provide that a tax levied under Part 4 (Regional Public Transportation Authority, Triangle) of this Article may not be in effect in a county at the same time as a tax levied by that county under Part 6 (counties other than Durham, Forsyth, Guilford, Mecklenburg, Orange, or Wake) of this Article.

    Amends GS 105-511 to provide that this Part (Article 43, Part 6 GS Chapter 105) applies only in counties other than Durham, Forsyth, Guilford, Mecklenburg, or Orange (was, included Wake County).

    Declares that Article 46 of GS Chapter 105 is to be known as the One-Quarter Cent or One-Half Cent County Sales and Use Tax Act (was,One-Quarter Cent County Sales and Use Tax).Amends GS 105-537 to to provide that the board of county commissioners may by resolution and after 10 days' public notice levy a local sales and use tax at the applicable rate (was, 0.25%) if the majority of those voting in a referendum held under Article 46 vote in favor of the levy of the tax. Requires that the rate be in 1/4% increments, and must be a rate that, if levied, would not result in a total local sales and use tax rate in the county exceeding 2 1/2%. Makesadditionalconforming changes.

    Deletes proposed subsection (e), whichprohibited conducting an advisory referendum on the question of whether to levy a local sales and use tax in the county on or after August 1, 2014. Also deletes subsection which provided that regardless of GS 105-537(e) a county could place the question of levying a local sales and use tax in the county in the 2014 elections providing that the total sales and use tax in the county was less than 2 1/2%.

    Enacts GS 105-539 to provide that a county that approves the levy of a tax under Article 46 in a referendum held on or before January 1, 2015 must use the tax proceeds for any lawful purpose. Provides that a county that approves the levy of a tax under this Article in a referendum held after January 1, 2015 must use the proceeds of a tax levied under this Article for any lawful purpose, except that the proceeds may not be used for a purpose for which a tax levied under Article 43 of GS Chapter 105 must be used.

    Adds new subdivision (20) to GS 78A-17 to provide that an offer or sale of a security by an issuer is exempt from registration requirements under GS 78-24 andfiling requirements under GS 78A-49(d) providing that the offer or sale is conducted in accordance with requirementsas specified in new GS 78A-17.1.EnactsGS 78A-17.1 (Invest NC exemption).Permits North Carolina companies formed under the laws of this state and registered with the Secretary of State (Administrator) to sell unregistered securities to NC residents. Sets out requirements for the sale, including the following. Caps the aggregate amount received for all sales of securities by the issuing entity at $1 million if the issuer has not undergone a financial audit for its most recently completed fiscal year and made that audit available to each prospective investor and the Administrator. Caps the aggregate amount received for all sales of securities in reliance on this exemption at $2 million if the issuer has undergone and made available to each prospective investor and the Administrator a financial audit for its most recently completed fiscal year. Requires the issuer to provide a disclosure document to all prospective purchasers declaring that the securities have not been registered under federal or state securities law and are subject to limitations on resale. Specifies the content of the disclosure statement and provides that it is to be conspicuously displayed on the cover page of the disclosure document. Directs the issuer to require each purchaser to certify in writing the purchaser's understanding and acknowledgement of the financial risks inherent in the transaction. Sets out requirements for sales made online.

    Requires an issuer of security for which the offer of sale is exempt under this sectionto submit a free-of-charge quarterly report to the issuer's shareholders until there are no outstanding securities issued under this section. Permits the reporting requirement to be satisfied by making the information available on a web site if the information is made available within 45 days at the end of each fiscal quarter and remains available until the succeeding quarterly report. Requires an issuer to provide a written copy of the report to any shareholder upon request. Specifies content required to be in the report. Provides criteria for offers and sales to controlling persons, defined as an officer, director, partner, trustee, or individuals having similar status or performing similar functions as the issuer, or a person owning10% or more of the outstanding shares of any class or classes of securities of the issuer. Provides for a disqualification for the exemption allowed by this section if any of certain specifications apply to an issuer or a person affiliated with the issuer or offering. However, makes the disqualification provisions inapplicable if there is a (1) showing of good cause and without prejudice to any other action by the Administrator, the Administrator determines that itis not necessary that an exemption be deniedand (2) the issuer shows that the issuer made factual inquiry as to the existence of any disqualificationand could not have known that a disqualification existed even with the exercise of reasonable care.

    Provides that the Administrator may adopt rules to implement the provisions of this section and to protect investors who purchase securities under this section. Authorizes the Administrator to collect a nonrefundable filing fee of $150 for filing an exemption notice as required under this section. Provides that the fees are to be used to pay the costs of administering and enforcing this Chapter and that the revenue from the filing fee is to be credited to a nonreverting agency revenue account.

    Makes a conforming change to GS 78A-49(d) regarding the informational filing requirement.

    Requiresthe Secretary of State (Administrator) to adopt rules to implement this act within 12 months. Provides for a 15-day notice and comment period and requires the Administrator to hold at least one public hearing on the rules. Provides that the rules become effective on the first day of the month following the date the rules are adopted and sent to the Codifier of Rules for entry into the Administrative Code. Provides that this provision expires 12 months after the effective date of this act.

    Provides that Part V of this act, which enacts new GS 78A-17.1 is effective when it becomes law and expires on July 1, 2017 unless otherwise noted. Provides that the remainder of this act is effective when it becomes law.

    Makes conforming changes to the short and long title of this act.


  • Summary date: Jul 16 2014 - More information

    Senate committee substitute makes the following changes to the 1st edition:

    Changes the short and long titles.

    Enacts new GS Chapter 105, Article 43A, County Sales and Use Tax for Public Education, providing that the purpose of the Article is to give the counties of NC an opportunity to obtain an additional source of revenue to meet certain needs. Allows counties to use the revenue source to finance local public transportation systems under Article 43 or public education needs under Article 43A. 

    Authorizes counties to levy a local sales and use tax at a rate up to 1/2% if approved by the voters in a referendum. Requires the tax to be set in increments of 1/4% and must be at a rate that results in a total local sales and use tax rate in the county of 2 1/2%. Sets out additional procedures and requirements for administration of the tax.

    Provides that the proceeds from the tax are not shared with the municipalities in the county. Also sets out three purposes that the tax can be used for including (1) for public school capital outlay purposes or to retire county indebtedness for these purposes, (2) for salaries of classroom teachers and teacher assistants, and teacher salary supplements, and (3) financial support of community colleges, including funds to supplement State financial support of community colleges. 

    Amends GS 115C-429(b), concerning school boards budgets and allocations, authorizing a board of county commissioners to direct the amount of funds to be used for salaries of classroom teachers, salaries of classroom teacher assistants, and supplements of classroom teacher salaries. Sets out standards by which a teacher is considered an employee of a local board of education. 

    Amends GS 115C-433(b) to provide that a board of education would need approval from the board of county commissioners before decreasing the funds that are allocated by the board of county commissioners for salaries and salary supplements. 

    Amends GS 115D-55(a) and GS 115D-58(b), concerning community colleges, to allow the tax-levying authority to direct the use of tax proceeds as well as requiring a board of trustees to obtain approval from the local tax-levying authority before decreasing the funds that are directed by the  tax-levying authority. 

    Amends GS 105-506, concerning the Local Government Public Transportation Sales Tax Act, allowing all counties to levy the public transportation tax, once approved by referendum, to fund local public transportation systems. Provides that this tax cannot be levied at the same time that the tax in GS 105, Article 43A is levied. Provides that the tax under Article 43 must set in increments of 1/4% and must be at a rate that results in a total local sales and use tax rate in the county of 2 1/2%. Provides additional provisions regarding caps for local sales and use tax rates, depending on the tax rates in a specific county. 

    Amends GS 105-507.1, 105-507.2, 105-509, 105-509.1, 105-510, 105-510.1, 105-511.2, and 105-511.3, all concerning the levy of the sales and use tax, making conforming changes. 

    Amends GS 105-537 to provide that a tax levied under GS Chapter 105, Article 46 (1/4 cent county sales and use tax) must be approved in a referendum. Also enacts new GS 105-537(e) providing that a board of county commissioners can not direct the county board of elections to conduct an advisory referendum on the question of whether to levy a local sales and use tax in the county as provided in Article 46, on or after August 1, 2014. Provides exceptions to the prohibition, allowing counties to direct the county board of elections to conduct an advisory referendum if (1) the county has already directed the county board of elections to conduct the advisory referendum on a ballot in a general election to be held in 2014 and (2) the total rate of local sales and use tax in the county is less than 2 1/2%. 

    Amends GS 143B-437.012, concerning the Job Maintenance and Capital Development Fund, altering an eligibility condition for a grant for a large manufacturer, providing that if the large manufacturer  is investing in its manufacturing process by enhancing pollution controls or transitioning the manufacturing process from using coal to using natural gas for the purpose of becoming more energy efficient or reducing emissions it may be eligible for a grant if other specific conditions are met. 

    Amends GS Chapter 143B, Article 10 Part 2G to provide for the creation of the Job Catalyst Fund(Fund). Amends GS 143B-437.51, adding and defining the term "full-time worker". Enacts new GS 143B-437.67, Job Catalyst Fund, a special, non-reverting account in the Department of Commerce that provides funds to local governmental units for certain projects that result in the creation of jobs. Directs the Secretary of Commerce to adopt guideline for the administration of the program. Specifies 10 provisions that must be included in the guidelines including, that the project be for a business that agrees, for the greater of 10 years or the term of the grant plus five years, to create and maintain 500, 800, or 1,200 full-time jobs depending on the corresponding development tier, and that the funds are used to acquire or improve land or infrastructure, for facility development, or for capital investment and used for manufacturing projects. 

    Includes a forfeiture and recapture provision which, when a project fails to timely create and maintain the required new jobs, level of investment, or to meet other requirements, requires local governments to provide a means for recapture from the business/project an amount equal to the amount disbursed from the Fund and to reimburse the Fund that amount.

    Requires businesses receiving grants to maintain records available for inspection by the Secretary of Commerce. Also requires the Department of Commerce to report annually, on or before April 30 of each year on the Fund. The report must be submitted to House of Representatives Finance Committee, the Senate Finance Committee, the House of Representatives Appropriations Subcommittee on Natural and Economic Resources, the Senate Appropriations Committee on Natural and Economic Resources and the Fiscal Research Division. Sets out nine items of information that must be in the report including, an update on the status of projects under grants awarded before the preceding calendar year and the number and development tier area of new worker positions to be created by projects with respect to which grants have been awarded.

    Provides that the Secretary of Commerce must publish on the Department's website proposed guidelines for the Fund at least 20 days before the effective date and allow oral and written public comment during the 15 business days beginning on the first day the notice requirement has been completed. Provides in GS 150B-1 that the Secretary is exempt from rulemaking requirements of the APA for the purpose of creating guidelines and the administration of the Fund.  

    Makes conforming and organizational changes necessary for the creation and implementation of the Job Catalyst Fund. 

    Amends Section 15.19(a1) of SL 2013-360 to provide that the Job Development Investment Grant Program, for the 2013-15 fiscal biennium, has a total liability for grants awarded of $36.5 million (was, $22.5 million). 

    Amends GS 143B-437.52 adjusting one of the conditions for qualifying for a grant from the Job Development Investment Grant Program, providing that if the total costs of a project to the State outweigh the benefits as a result of an award from the Fund then the award from the Fund can be disregarded in determining whether a grant is appropriate for the project (previously, required the total benefits of the project to the State outweigh its costs and render the grant appropriate for the project). 


  • Summary date: May 27 2014 - More information

    Amends GS 143B-437.012, concerning eligibility for a grant from The Job Maintenance and Capital Development Fund, adding new conditions for eligibility. New conditions includ, that the business be a major employer, with the project for which funds are requested having to be located in a development tier one area at the time the business applies for the grant. Also new, a business can be eligible for a grant if it is a large manufacturing employer that is converting its manufacturing process to become more energy efficient and reduce emissions as well as being certified by the Department of Commerce that the business has invested or plans to invest at least $50 million of private funds (was, $65 million) in improvements to real property and additions to tangible personal property within a five-year period (was, three-year).  Deletes a requirement that the large manufacturing business must be located in a tier one development area in order to be eligible for a grant.  However, sets out that to be eligible certain employment levels must be met and maintained depending on the category of the development area the business is located in.  The business can be located in either a tier one or tier two development area, with different employment requirements depending on the tier. Tier one location would roughly require that 320 full-time employees be employed by the project that is subject to the grant with tier two location requiring 800 full-time employees if the tier two area has a population of less than 60,000 as of July 1, 2013.

    Establishes that the Department of Commerce cannot enter into more than five agreements/grants, with total aggregate cost not to exceed $79 million (was, $69 million).

    Effective July 1, 2014.

     


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