Bill Summary for H 1050 (2013-2014)

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Summary date: 

May 28 2014
S.L. 2014-3

Bill Information:

View NCGA Bill Details2013-2014 Session
House Bill 1050 (Public) Filed Wednesday, May 14, 2014
Intro. by Howard, W. Brawley, Lewis, Setzer.

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Bill summary

Senate committee substitute to the 3rd edition makes the following changes:

Enacts new GS 105-130.5B(g), concerning adjustments when the state decouples from federal accelerated depreciation and expensing, providing that for certain transactions AGI must be increased or decreased to account for any difference in the amount of depreciation, amortization, or gains or losses applicable to specified property.

Amends previously repealed GS 105-134.6A(g) and GS 105-153.6, concerning adjustments when the state decouples from federal accelerated depreciation and expensing, making clarifying and conforming changes.

Amends GS 105-164.28A(a), deleting proposed language that required the issued preferential rate or use-based exemption number to be included on a person's certificate of exemption.

Amends effective dates provided in Section 5.1(g) of the act, clarifying that when effective, provisions apply to gross receipts derived from an admission charge sold at retail on or after the effective date.

Amends proposed language in GS 105-187.5(a), making clarifying changes. Also clarifies that when effective, the provisions apply to gross receipts derived from a service contract sold at retail on or after the effective date.

Amends GS 105-164.3(35), making a technical change.

Amends GS 105-164.4(a), making technical and clarifying changes.

Deletes proposed language and changes to GS 105-164.13 that were to be effective July 1, 2014, concerning tax exemption for modular or manufactured homes.

Amends GS 105-449.52, deleting changes made to subsection (a) of the previous edition and instead amends subsection (b) to provide that the Secretary of Revenue can reduce or waive the specified penalty as provided in GS 105-449.119. Makes technical changes.

Amends proposed GS 105-339A, renumbering it as GS 105-339.1.

Amends GS 160A-211(a), which was reenacted by Section 12.1(a) of this act, provided that the occupations and professions that can have a tax levied against them must be physically located in the city (previously, stated occupations and professions carried on in the city). Effective when it becomes law and applies to taxable years beginning on or after July 1, 2014.

Provides that for fiscal year 2014-15, a city can only apply any privilege license tax ordinance that was in effect for that city in the 2013-14 fiscal year. If no tax was enacted, the city is prohibited from enacting a privilege license tax ordinace for 2014-15.  Effective when the act becomes law and applies to taxable years beginning on or after July 1, 2014.

Repeals GS 160A-211 concerning privilege taxes, effective for taxable years beginning on or after July 1, 2015.

Also repeals GS 105-88(e), 105-109(e), 130A-294(r), 160A-211.1, and 153A-152.1 which authorized specified privilege license taxes.

Amends GS 160A-194, concerning licensing for business and trades, and GS 160A-215.1, concerning the gross receipts tax on short-term leases or rentals, making technical and conforming changes in both sections.

Makes conforming and technical changes.

Amends the enactment clause for Section 12.3 of the bill, providing clarifying language and setting out certain limitations of the provisions enacted.

Deletes proposed changes to GS 105-163.5(b).

Amends GS 105-163.2, concerning the withholding of taxes due by employers, requiring employers to allow for additions that the employee is required to make in regards to income tax liability.

Amends GS 105-163.5(b), making clarifying changes. Also provides that changes to this subsection are effective for taxable years beginning on or after January 1, 2014.

Provides that proposed changes to GS 105-163.2A(c) are to become effective January 1, 2015, applying to payments made on or after that date.

Amends changes to GS 105-164.44L(c), making clarifying changes in regards to the ad valorem share a city can receive from excise taxes.

Amends GS 105-309(d), making clarifying changes regarding additional information that can be requested by the Department of Revenue.

Amends GS 14-344.1(a)(3), concerning Internet sale of admission tickets, clarifying that the person who has obtained a certification of registration under GS 105-164.29 collects and remits to the state the sales and use tax (previously, the person reselling the ticket collected and remitted the privilege tax).  Effective December 1, 2014.

Amends GS 105-163.22, concerning reciprocity of tax withholding statutes, making clarifying and technical changes.

Amends GS 105-113.4 and GS 148-23.1(d), updating the definition of vapor products, clarifying that they are nonlighted, noncombustible products that employ a mechanical heating element (previously, did not include nonlighted in the description/definition).

Amends GS 105-113.37(b), updating statutory references.

Amends GS 105-113.40A, to provide that the Secretary of Revenue is required to transfer proceeds from the tax on vapor products to the General Fund.

Amends the effective date for the provisions concerning vapor products to June 1, 2015 (was, February 1, 2015).

Deletes Part XVI of the act, Reinstate Hospital Set-Off Debt Collection, which amended GS 105A-2.