Bill Summary for H 522 (2017-2018)

Printer-friendly: Click to view

Summary date: 

Mar 29 2017

Bill Information:

View NCGA Bill Details2017-2018 Session
House Bill 522 (Public) Filed Wednesday, March 29, 2017
AN ACT TO CHANGE THE LOCAL OPTION SALES TAX (LOST) ADJUSTMENT FACTOR TO ONE THAT VARIES BY ECONOMIC DEVELOPMENT TIERS.
Intro. by Lewis.

View: All Summaries for BillTracking:

Bill summary

Identical to S 126, filed 2/22/17.

Current law requires the Secretary of Revenue (Secretary) to allocate the net proceeds of the additional 1/2% sales and use tax, imposed under Article 40 of GS Chapter 105, to the taxing counties on a per capita basis according to the most recent annual population estimates certified to the Secretary by the State Budget Officer. Further, current law requires the Secretary to adjust the amount allocated to each county by multiplying the amount by the appropriate adjustment factor set out in the table provided in GS 105-486(b), which lists adjustment factors by county or counties.  

This act establishes that the adjustment factor the Secretary is to use in allocating the net proceeds from the additional 1/2% sales and use tax to counties is to be based on the development tier designation of the county under GS 143B-437.08 (establishes provisions for determining an area's development tier designation to be assigned and ranked annually by the Secretary of Commerce). Also, establishes that the development tier designation of a county is effective for the fiscal year following the designation. The adjustment factor for tier one is 1.10, for tier two is 1.00, and for tier three is 0.90. Makes conforming changes to the table provided in GS 105-486(b).

Effective July 1, 2017, and applies to local option sales taxes collected on or after that date and distribution to counties and cities on or after September 1, 2017.