Bill Summary for H 41 (2015-2016)

Summary date: 

Mar 5 2015

Bill Information:

View NCGA Bill Details2015-2016 Session
House Bill 41 (Public) Filed Tuesday, February 3, 2015
AN ACT TO MAKE TECHNICAL AND CLARIFYING CHANGES TO VARIOUS REVENUE LAWS, AS RECOMMENDED BY THE REVENUE LAWS STUDY COMMITTEE.
Intro. by Howard, W. Brawley, Lewis, Setzer.

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Bill summary

House committee substitute to the 1st edition makes the following changes.

Adds that the purpose of Section 4 (which amends Section 4.2(a) of SL 2013-316) of the act is to clarify the intent of the 2013 General Assembly that the Utilities Commission must adjust the rate for sales of electricity, piped natural gas, and water and wastewater services to reflect all of the tax changes enacted in SL 2013-316. Clarifies that the Utilities Commission must order a utility to add interest to money refunded to its customers for refunds resulting from the reduction of the corporate income tax rate effective for taxable years beginning January 1, 2014, as provided in Section 4(b) of the act. Makes conforming and technical changes.

Amends GS 105-164.13E(b) to provide that a conditional exemption certificate issued to person who does not meet the definition of a qualifying farmer is valid for the taxable year in which the certificate is issued and the following two taxable years if the person is engaged in farming and provides copies of applicable income tax returns within 90 days following the due date of an income tax return for each taxable year covered by the certificate, including an extension of the due date (was, if the person to whom the certificate is issued provides copies of income tax returns within 90 days following the end of each taxable year covered by the certificate and if the person is engaged in farming operations).

Amends GS 105-164.16A by deleting proposed (b), which required a retailer to report gross receipts derived from a prepaid meal plan on a accrual basis, despite specified circumstances. Adds that the retailer must report the gross receipts on an accrual basis of accounting, as required under GS 105-164.20. Makes conforming changes. Amends GS 105-164.20 to add that the following retailers must report the gross receipts it derives from the taxable transaction listed on an accrual basis of accounting: (1) a retailer who sells electricity, piped natural gas, or telecommunications service (was, electricity or telecommunications service); (2) a retailer who derives gross receipts from a prepaid meal plan; and (3) a retailer who sells or derives gross receipts from a service contract. Makes all of the changes in Section 23 of the act effective October 1, 2014.

Adds a new Section 24 to the act, the purpose of which is to extend the statute of limitations for requesting a refund of state income taxes to conform to federal tax treatment of the rollover of an airline payment amount by a qualified airline employee to a traditional or Roth IRA to prevent double taxation. Allows a qualified airline employee, or the employee's surviving spouse, that meets the specified conditions to apply for a refund of the state income tax paid on the airline payment amount that was transferred to a traditional IRA. Requires a request for a refund to be made on or before October 15, 2015; requests after that date are barred.

Makes technical changes throughout.

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