Bill Summary for H 998 (2013-2014)

Summary date: 

Jun 13 2013
S.L. 2013-316

Bill Information:

View NCGA Bill Details2013-2014 Session
House Bill 998 (Public) Filed Wednesday, April 17, 2013
A BILL TO BE ENTITLED AN ACT TO SIMPLIFY THE NORTH CAROLINA TAX STRUCTURE AND TO REDUCE INDIVIDUAL AND BUSINESS TAX RATES.
Intro. by Lewis, Setzer, Moffitt, Szoka.

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Bill summary

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

Changes the long title.

Deletes Part I, General Findings and Intent, from the previous edition.

Part I, Individual Income Tax Changes (new)

Recodifies numerous statutes.

Current Statute            Recodified Statute

GS 105-133               GS 105-153.1

GS 105-134               GS 105-153.2

GS 105-134.1            GS 105-153.3

GS 105-134.5            GS 105-153.4

GS 105-151               GS 105-153.9

GS 105-151.24           GS 105-153.10

GS 105-152               GS 105-153.8

The following statutes are repealed:

GS 105-134.2,   Individual income tax imposed.

GS 105-134.3,  Year of assessment.

GS 105-134.6,  (Effective for taxable years beginning before January 1, 2012) Adjustments to taxable income.

GS 105-134.7,  Transitional adjustments.

GS 105-134.8,  Inventory.

GS 105-151.1 and GS 105-130.22, Tax credit for construction of dwelling units for handicapped persons.

GS 105-151.11,  Credit for child care and certain employment-related expenses.

GS 105-151.12 and GS 105-130.34, Credit for certain real property donations.

GS 105-151.13 and GS 105-130.36, Credit for conservation tillage equipment.

GS 105-151.14 and GS 105-130.37, Credit for gleaned crop.

GS 105-151.18, Credit for the disabled.

GS 105-151.20, Credit or partial refund for tax paid on certain federal retirement benefits.

GS 105-151.21, Credit for property taxes paid on farm machinery.

GS 105-151.25 and GS 105-130.44, Credit for construction of a poultry composting facility.

GS 105-151.26,  (Effective for taxable years beginning before January 1, 2012) Credit for charitable contributions by nonitemizers.

GS 105-151.33, Education expenses credit.

Amends GS 105-134.1, recodified by this act at GS 105-153.3 (Definitions), deleting the term and definition for retirement benefits.

Amends GS Chapter 105 by creating a new section GS 105-153.5 (Modifications to adjusted gross income), providing that in calculating NC taxable income, a taxpayer must deduct any of eight items that are included in the taxpayer's adjusted gross income, including amounts received from retirement annuities or pensions paid under the provisions of the Railroad Retirement Act of 1937 or the amount received during the taxable year from one or more state, local, or federal government retirement plans to the extent the amount is exempt from tax.

Specifies five items that taxpayers must add to their adjusted gross income if not already included, including (1) the amount excluded from gross income under section 199 of the Code; (2) interest on the obligations of other states, political subdivisions of those states, or agencies; (3) the amount required to be added under GS 105-153.6 when the state decouples from federal accelerated depreciation and expensing.

Creates new GS 105-153.7 (Individual income tax imposed), establishing that a tax is charged for each taxable year on the NC taxable income of an individual. The tax is 5.4% of NC taxable income that exceeds the zero tax brackets for the taxpayer's filing status. Includes a table demonstrating the zero tax brackets, (pg. 5 of bill), for all filing statuses. Specifies the Secretary of Revenue (Secretary) can provide tables that compute amount of tax due for a taxable year under this section.  Tables will not apply to individuals filing a return under section 443(a)(1) of the Code for a period of less than 12 months, due to accounting periods, estates, or trusts.

Provides Section 1.1 will become effective for taxable years beginning on or after January 1, 2014.

Amends GS 105-153.7(a), providing that the individual income tax will be 5.25%, effective for taxable years beginning on or after January 1, 2015.

Amends GS 105-153.8 (Income tax returns) (previously G.S. 105-152), making technical, conforming, and clarifying changes. Provides that anyone whose taxable income exceeds the zero tax brackets must file an income tax return.  Clarifies that nonresidents who have received gross income from NC sources, including gambling, are required to file a return for the taxable year under the Code.

Provides that if a taxpayer is deceased or unable to file a return, an authorized agent or guardian must file the return.  If the taxpayer has died before making the return, the administrator or executor of the estate must file the return and any tax due is payable by the estate. Replaces "taxable income" with "adjusted gross income" and all instances of "shall" with "must."

Amends GS 105-153.9 (Tax Credits for income taxes paid to other states by individuals) (previously, GS 105-151), making conforming and technical changes. Amends GS 105-153.9(a)(2), to read The fraction of the adjusted gross income as modified in GS 105-153.5 (previously, The fraction of the gross income, as calculated under the Code and adjusted as provided in GS 105-134.6 and GS 105-134.7). Provides that the changes to the above two sections become effective for taxable years beginning on or after January 1, 2014.

Updates statutory references in GS 105-131.2, GS 105-131.5, GS 105-131.7, GS 105-131.8, and GS 105-154. Makes clarifying changes. Amends GS 105-163.1 to update statutory references and remove the amount of severance wages paid to an employee during the taxable year that are exempt from state income tax for that year to those items excluded from the definition of wages. Amends GS 105-163.22 to update statutory references.  Amends GS 105-309(d) to delete the requirement that personal property be listed to indicate which property is subject to a tax credit under GS 105-151.21 (Credit for property tax paid on farm machinery). Repeals GS 105-320(a)(16), which removes the requirement that a tax receipt form show the total assessed value of farm machinery, attachments, and repair parts of individual owners and S corporations engaged in farming subject to the income tax credit in GS 105‑151.21 and the amount of ad valorem taxes due on farm machinery, attachments, and repair parts subject to that credit. Amends GS 110-130.1(a) to update the definition of the term Code. Provides that the above changes are effective January 1, 2014.

Amends GS 105-277.3(d1) to provide that property that is appraised at its present use value will continue to qualify for appraisal, assessment, and taxation as provided in specified statutes, as long as the property is subject to a conservation easement that meets the property eligibility requirements under GS 113A-232. Amends GS 113-77.9 to remove references to GS 105-151.12 and GS 130.34. Amends GS 113A-231, GS 113A-232, and GS 113A-233 to remove references to the conservation tax credits. Further amends GS 113A-232 to add to the eligibility requirements for the Conservation Grant Fund that the property must be (1) useful for one or more of seven specified purposes including public beach access or use, forestland or farmland conservation, or watershed protections or (2) donated in perpetuity to and accepted by the state or a local government or a body that is organized to receive and administer lands for conservation purposes and qualified to receive charitable contributions (disqualifies land required to be dedicated under local government regulation or ordinance and dedications made to increase building density levels).  Repeals GS 113A-256(g), deleting the power of the Clean Water Management trustees to determine whether land donated for a tax credit under specified statutes may be certified for a tax credit. The above changes are effective January 1, 2014.

Deletes Part II, Simple Flat Tax Rate for Individual Income Tax, included in the previous edition. Also deletes changes made to GS 105-134.2, Individual income tax imposed; GS 105-134.6, Modifications to adjusted gross income; GS 105-151.24(a), concerning child tax credits; and GS 105-160.2, Imposition of tax.

Part II, Phased Elimination of the Corporate Income Tax

Amends GS 105-130.3 (Corporations), reducing the tax imposed on the state net income of a C Corporation doing business in North Carolina over a three year span, beginning in 2014. The rate in 2014 is 6%, decreasing over time to 2% for years after 2016.  Effective for taxable years beginning on or after January 1, 2014.

Repeals GS 105, Article 4, Part 1, Corporation Income Tax; GS 105, Article 3C, Tax Incentives for Recycling Facilities; and Article 3K, Tax Incentives for Railroad Intermodal Facilities.

Changes the effective date for changes made to GS 115C-546.1, Creation of Fund; administration, and the repeal of GS 115C-546.2(a) to becoming effective when it becomes law (was, April 1, 2014, for distributions for collections for quarters beginning on or after that date).

Part III, Business Privilege Tax on Corporations, LLCs, and Other Limited Liability Entities (was, Reduce Corporate Income and Franchise Tax Rates)

Establishes a privilege tax on business entities for the privilege of doing business in North Carolina in an organizational form that gives limited liability to one or more owners. Payment of the tax is a condition precedent of doing business in North Carolina. Establishes that each owner of a non-corporate business entity doing business in North Carolina is considered to be doing business in North Carolina. Establishes that the tax imposed will be $400 for Income Year 2015, $600 for 2016, and $750 for any year after 2016. Establishes when taxes and returns are due. Provides for an extension of time to file tax returns.  Also states that the president, vice president, treasurer, or chief financial officer must sign the tax return. Provides that the income year of a business entity is the calendar year or fiscal year upon which the basis of the net income is computed for federal income tax purposes. Includes terms and definitions for use in this Article, including business entity, C Corporation, Code, Person, S Corporation, and Secretary. Provides that certain entities are exempt from the privilege tax, including (1) a business entity exempt from federal income tax under section 501 of the Code and (2) an insurance company subject to tax under Article 8B of this Chapter. The above changes are effective for taxable years beginning on or after January 1, 2015, and apply to taxes due in that year or a subsequent year.

Amends GS 105-129.100(b), providing that the tax for a C Corporation will be $5,000, with the tax for all other business entities set at $750 (previously, the tax was $400 in 2014, $600 in 2015, and $750 after 2015). Amends GS 105-129.101, changing the definition for business entity, establishing, among other types, a domestic corporation organized under GS 55 or a foreign corporation with a certificate of authority, an electric membership corporation organized under GS 117, or any other business whose form provides limited liability to one or more of its owners is considered a business entity. Provides that the above changes become effective for taxable years beginning on or after January 1, 2018, and apply to taxes due in that year or a subsequent year.

Deletes previous changes made to GS 105-130.3, concerning taxes on corporations. Deletes the new section, GS 105-130.5, adjustments to federal taxable income, and GS 105-130B, concerning adjustments to taxes when the state decouples (included as a new section in the previous edition). Also deletes changes made to GS 105-129.42(a), GS 105-129.42(b), and the repeal of GS 105-129.45, all provided for in Part III of the previous edition.

Part IV, Phased Elimination of the Franchise Tax (was, Expand Sales Tax Base to Include Services Commonly Taxed in Other States)

Repeals GS 105-114(a), concerning the nature of the tax imposed by that section, and GS 105-122.1, Credit for additional annual report fees by LLCs. Amends GS 105-125(a), adding S corporations subject to the privilege license tax to the list of corporations exempt from the franchise tax.  Changes above are effective for taxable years beginning on or after January 1, 2015, and apply to taxes due in that year or a subsequent year.

Amends GS 105-122, concerning the calculation of the franchise or privilege tax on domestic and foreign corporations, to set the rate of the franchise or privilege tax required of every corporation taxed under this section, establishing that the rate set is an amount per $1,000 of the total amount of capital stock, surplus, and undivided profits. The amount for 2015 is $1.20 per $1,000 for 2015, $0.90 per $1,000 for 2016, and $0.60 per $1,000 for 2017. Sets a minimum tax due for each year. Makes conforming changes to GS 105-122(d). Effective for taxable years beginning on or after January 1, 2015.

Repeals GS 105, Article 3, Franchise tax, effective January 1, 2018.

Deletes changes made to GS 105-467(b), GS 105-164.13, GS 160A-211 and deletes the previously added new subsections GS 105-164.4, GS 105-164.3(1c), GS 105-164.4(a)(11), and GS 105-164.13(61) and (62).

Deletes the repeal of GS 105-164.13(13c), GS 105-164.13D, GS 105-37.1, GS 105-38.1, GS 105-40, and GS 105-164.13(49).

Part V, Eliminate Annual Report Filing Fees

Amends GS 55-1-22 (Filing, service, and copying fees), deleting references to an annual paper or electronic report in lieu of specifying just an annual report with no fee to submit the report (was, $25 for paper report and $18 for electronic report). Deletes reference to the fee for annual reports being nonrefundable. Amends GS 55-16-22 (Annual report), reorganizing the majority of language through GS 55-16-22(d), providing clarifying language that simplifies and specifies exactly which types of business entities must submit annual reports and the information that must be included in each annual report.  Establishes a firm due date for annual reports, the 15th day of the 4th month following the close of the entity's fiscal year.  Clarifies the requirements and expectations in cases where the Secretary deems an annual report to be incomplete.  Deletes GS 55-16-22(e-h).  Makes technical and conforming changes.

Amends GS 57C-1-22(a)(25),  GS 59-35.2(a)(18), GS 59-1106(a)(22), changing the associated fees for the required annual reports of these sections to "No fee."

Repeals GS 105-122.1 (Credit for additional annual report fees paid by limited liability companies subject to franchise tax).

Amends GS 105-228.90(a), making technical and conforming changes.

Repeals GS 105-256.1 (Secretary and deputies to administer oath).

Amends GS 105-259(a), making technical and conforming changes.

Effective January 1, 2015. Subsection (f) repealing GS 105-122.1 of this section applies to returns due on or after April 15, 2015, for taxable years beginning on or after January 1, 2015. The remaining sections apply to annual reports due on or after January 1, 2015.

Part VI, Eliminate Archaic State and Local Privilege License Taxes

Repeals GS 105, Article 2, Privilege Taxes, effective January 1, 2018, and applies as follows:

(1) For taxes payable under G.S. 105-41, 105-88, or 105-102.3, the section applies to taxes imposed under those statutes for taxable years beginning on or after July 1, 2018. 

(2) For taxes payable under G.S. 105-102.6, the section applies to taxes due on or after January 31, 2018. 

(3) For taxes payable under G.S. 105-83, the section applies to obligations dealt in, bought, or discounted on or after January 1, 2018.

Amends GS 153A-152, deleting a county's general authority to impose privilege license taxes on certain trades, occupations, professions, businesses, and franchises . Prohibits a county from levying a privilege tax on any of those entities carrying out business in that county unless a statute or an act of the General Assembly authorizes the county to do so. Amends GS 160A-211, deleting a city's general authority to impose privilege license taxes on certain trades, occupations, professions, businesses, and franchises. Prohibits a city from levying a privilege tax on any of those entities carrying out business in that city unless a statute or an act of the General Assembly authorizes the city to do so. Effective January 1, 2018, and applies to taxes imposed for fiscal years beginning on or after that date.

Repeals GS 93-12(12) (requiring the Secretary of Revenue to submit the names of persons who have qualified under this Chapter as certified public accountants and providing that a privilege license issued under GS 105‑41 designates whether it was issued to a certified public accountant or an accountant) and GS 105-259(b)(4) (allowing the disclosing to a governmental agency or an officer of an organized association of taxpayers a list of taxpayers who have paid a privilege license tax). Amends GS 53-165 to make clarifying and technical corrections to the definitions.  Adds a definition of installment paper dealer and amends the definition of loanable assets to mean cash, bank deposits, installment loans, or any combination. Expands the definition of person to also include a group acting as a unit. Amends GS 53-172 to provide that the business of making loans includes acting as an installment paper dealer and collecting a loan made by a government regulated lender. Makes conforming changes.  Amends GS 53-191 to make conforming and technical changes. Amends GS 95-47.2 to amend the reasons for denying a license for operating a private personnel service when the employment agency will be operating on the same premises as specified businesses to include, in addition to a collection agency, a business making loans and taking an assignment of wages as security or any other type of security (was, a loan agency as defined in GS 105-88), a check cashing business, and a pawnbroker business. Amends GS 105-130A.6A to remove the reference to the privilege tax. These changes are effective July 1, 2018.

Part VII, Electricity and Piped Natural Gas Tax Changes

Modifies the definition for electric power holding company in GS 105-130.6A to mean a holding company with an affiliate or a subsidiary that is engaged in the business of producing electric power (was, that is subject to the franchise tax on electric power companies levied in GS 105-116).

Amends GS 160A-211 to provide that certain businesses identified as exempt from a city's license, franchise, or privilege tax (1) are subject to a state tax at the combined general rate for which the city receives a share of the tax revenue or (2) are subject to the local sales tax. Authorizes a city to continue to impose and collect the license, franchise, or privilege taxes on an electric power company that the city imposed and collected before January 1, 1947. Prohibits a city from imposing or collecting any greater franchise, privilege, or license taxes that are greater in the aggregate than the taxes imposed or collected on or before January 1, 1947. Effective July 1, 2014, unless otherwise indicated.

Amends GS 105-164.44K, Distribution of part of tax on electricity to cities, defining the franchise tax share as the quarterly franchise tax share of a city is the amount of electricity gross receipts franchise tax distributed to the city under repealed GS 105-115.1 for the same related quarter that was the last quarter in which taxes were imposed on electric power companies under repealed GS 105-116. Deletes language concerned with the recalculation of the franchise tax share of a city every five years.

Amends GS 105-164.44L, providing that the quarterly excise tax share of a city that is not a gas city is the amount of piped natural gas excise tax distributed to the city under repealed GS 105-187.44 for the same related quarter that was the last quarter in which taxes were imposed on  piped natural gas. Adds language that the Secretary must determine the excise tax share of a gas city and divide that amount by four to calculate the quarterly distribution amount for a gas city.

Part VIII, Eliminate Sales Tax Special Exemptions

Repeals the following subdivisions of GS 105-164.13 to delete the exemptions for certain property and services: (13c), nutritional supplements sold by a chiropractor to patients as a part of treatment; (27), meals and food products served to students in dining rooms regularly operated by state or private educational institutions or student organizations; (27a), bread, rolls, and buns sold at a bakery thrift store; (28), sales of newspapers by street vendors, door-to-door carriers, and vending machines; and (50) 50% of the sales price of tangible property, other than tobacco, sold through a coin-operated vending machine. Also repeals GS 105-164.13C (sales and use tax holiday) and GS 105-164.13D (sales and use tax holiday for Energy Star-qualified products). Effective July 1, 2014.

Repeals the following statutes under Article 2 (Privilege Tax) of The Revenue Act (Subchapter I of GS Chapter 105) having to do with admissions, ticket sales, and licensing: GS 105-37.1, 105-38.1, and 105-40. Amends GS 105-164.4 to apply the 4.75% privilege tax on admission charges to the following entertainment activities: a live performance or other live event; a movie; and a museum, cultural site, garden, exhibit, show, or similar attraction or a guided tour at any of these attractions. Provides that an admission charge includes a charge for a single ticket, a multi-occasion ticket, a seasonal pass, an annual pass, and a cover charge, but does not include a charge for amenities. Includes provisions concerning the resale of a ticket. Amends GS 105-164.13 to exempt the admission charges to the following recreational or entertainment activities from sales tax: a school-sponsored event held at an elementary or secondary school; a commercial agricultural fair meeting the requirements of GS 106-520.1; a festival or recreational entertainment activity sponsored by a nonprofit that lasts no more than seven days where the proceeds are used for the entity's nonprofit purposes; and a youth athletic contest sponsored by a nonprofit. Repeals the following statutes: GS 106-507 (exempting county societies from state and local taxes on exhibits, shows, attractions, and amusements), GS 106-516 through GS 106-520 (related to licensing and permits for agricultural fair vendors and exhibitors and carnival permits), GS 140-10.1 (exempting the North Carolina Symphony Society from all privilege license and gross receipts taxes), and GS 105-164.9 (prohibiting a retailer from offering to absorb the sales tax). Amends GS 105-164.10 to remove provisions concerning rate tables for the general rate, preferential rate, and combined state and local rates, requiring instead that the a separate table be issued for each rate of tax that may apply to a sale. Effective October 1, 2013, and applies to admissions purchased on or after that date. The tax applies to the initial sale or resale of tickets occurring on or after that date for admissions to a live event; receipts received on or after October 1, 2013, for admission to a live event for which the initial sale of tickets occurred before that date are taxable under GS 105-37.1.

Repeals GS 105-164.14(c) regarding refunds of sales and use tax on specified purchases to certain governmental entities. Amends GS 105-164.14(b) to provide that the aggregate annual refund amount allowed for a nonprofit under the subsection (concerning nonprofits and hospital drugs) for a fiscal year may not exceed $7.5 million beginning July 1, 2014; $5 million beginning July 1, 2015, $1million beginning on or after July 1, 2016, and $100,000 beginning on or after July 1, 2017. Amends (d) to bar refunds applied for more than one year (was, three years) after the due date. Amends GS 105-467(b) to provide that the state exemptions and exclusions in GS 105-164.13 apply to the local sales and use tax authorized to be levied and imposed under the Article. Adds that the refund provisions in GS 105-164.14 through GS 105-164.14B apply to the local sales tax authorized to be levied and imposed under the Article. Limits the aggregate local refund amount to a nonprofit for a fiscal year to $2.25 million beginning July 1, 2014; $1.5 million beginning July 1, 2015; $300,000 beginning on or after July 1, 2016, and $30,000 beginning on or after July 1, 2017. Also amends the statute to bar refunds applied for more than one year (was, three years) after the due date. Applies to purchases made on or after July 1, 2014.

Amends GS 105-164.4 to apply the 4.75% privilege tax rate on the sales price of manufactured homes sold at retail (was, 2%) and deletes the $300 tax cap as well as the provision making each section of a manufactured home that is transported separately to a site where it is to be erected as a separate article. Also applies the 4.75% privilege tax rate to the sales price of each modular home sold at retail (was, 2%). Repeals GS 105-164.44G requiring distribution of part of the tax on modular homes to the county of residence. Amends GS 105-467 to provide that the sales tax does not apply to manufactured homes or modular homes. Effective October 1, 2014, and applies to sales made on or after that date.

Part IX, Eliminate Sales Tax on Food and Authorize Counties to Levy a Local Sales Tax on Food

Amends GS 105-483  and GS 105-498 to provide that a tax under Article 40 (First One-Half Cent (1/2¢) Local Government Sales and Use Tax) or Article 42 (Second One-Half Cent (1/2¢) Local Government Sales and Use Tax) does not apply to the sales price of food that is exempt from tax under GS 105-164.13B or to the sales price of a bundled transaction taxable under GS 105-467(a)(5a). Effective November 1, 2014, and applies to sales made on or after that date. Amends GS 105-164.13 to exempt food from the tax, but does not exempt dietary supplements, food sold in a vending machine, prepared food, soft drinks, and candy. Repeals GS 105-164.13B, amends GS 105-467(a), and amends GS 105-469(a) to repeal the local sales tax on food. Effective November 1, 2014, and applies to sales made on or after that date.

 

Enacts new Article 47, Local Government Sales and Use Tax on Food. Allows a county board of commissioners to levy local sales and use taxes on food by resolution, only if a majority of those voting in a referendum vote to approve the levy. Also allows the board, if no election has been held within five years where the tax was defeated, to impose and levy the tax on food, after at least 10 days' public notice and a public hearing, to the same extent and with the same effect as if the levy had been approved in an election. Sets the rate of the local sales and use tax on food as the sum of the rates of the local sales and use taxes authorized and levied by the county. Requires the Secretary of Revenue to divide and distribute the funds between the county and the cities located in the county. Prohibits a city from receiving funds if it was incorporated with an effective date of on or after January 1, 2000, and is disqualified from receiving funds under GS 136-41.2. Prohibits cities from receiving funds  if incorporated on or after January 1, 2000, unless a majority of the mileage of its streets are open to the public. Effective January 1, 2015.

Part X, Sales Tax Preferences for Farmers

Enacts new GS 105-164.13E to exempt specified personal property, digital property, and services from the sales and use tax if they are puchased by a farmer and used for farming. A farmer qualifies if the farmer has an annual gross income of $10,000 or more from farming operations for the preceding calendar year. Defines farmer for the purposes of the statute. Exempted items include fuel and electricity; farm machinery, attachment and repair parts for farm machinery and lubricants applied to farm machinery; and specified tobacco items. Repeals GS 105-164.13(1), (1b), (2a), (4a), and (4d), which are exemptions incorporated into the new GS 105-163.13E. Effective July 1, 2014, and applies to sales made on or after that date.

Part XI, Phased Elimination of Various Sales Tax Exemptions and Refunds

Enacts new GS 105-164.14C to set out a schedule for the refund amount allowed, which is a percentage of sales and use taxes paid during the fiscal year, whereby the percentage is decreased from 75% to 25% from 2014 through 2016. Allows an annual refund of sales and use taxes for famers  who purchase specified items and who qualify for a sales tax exemption under GS 105-164.14E, persons engaged in commercial logging on specified items, wood chippers meeting specified requirements, specified packaging items, telephone companies, radio or television companies, cable service providers, individuals involved in activities related to commercial fishing, commercial laundries and dry cleaners, commercial printers and publishers, railroad companies, and passenger air carries meeting specified requirements and purchasing specified items. Makes a conforming change by deleting the following existing exemptions and refunds that are now included in new GS 105-164.14C: GS 105-164.13 (1a), (4c), (4f), (4g), (5b), (5c), (5d), (9), (10), (11), (23a), and (39). Amends GS 105-467(b) to provide that the amount of a refund allowed under GS 105-164.14C is the same percentage as allowed for a state refund under the statute. Effective July 1, 2014, and applies to sales and purchases made on or after that date. Repeals these changes and the new statute effective July 1, 2017.

Part XII, Eliminate Estate Tax

Repeals GS Chapter 105, Article 1A (estate taxes), and makes conforming changes to GS 105-241.10 and GS 105-236(a)(5). Effective January 1, 2013, and applies to the estates of decedents dying on or after that date.

Part XIII, Deed Stamp Tax Proceeds Credited to General Fund

Amends GS 105-228.30(b) to require the Department of Revenue to credit the proceeds of the deed stamp tax to the General Fund (was, specified amounts were to go to the Parks and Recreation Trust Fund and the Natural Heritage Trust Fund). Amends GS 113-44.15 to make conforming changes to the Parks and Recreation Trust Fund. Amends GS 114-77.9 to make conforming changes to the Natural Heritage Trust Fund. Effective July 1, 2013, and applies to transfers made on or after that date.

Part XIV, Scrap Tire Disposal Tax Proceeds Credited to General Fund

Amends GS 105-187.19(b) to require that 30% of the scrap tire disposal tax proceeds be credited to the General Fund insstead of to the Solid Waste Management Trust Fund, the Scrap Tire Disposal Account, the Inactive Hazardous Sites Cleanup Fund, and to the Bernard Allen Memorial Emergency Drinking Water Fund. Repeals GS 130A-309.63 (Scrap Tire Disposal Account). Enacts new GS 130A-309.64 to allow the Department of Environment and Natural Resources (Department) to make grants to lcoal governments to assist in disposing of scrap tires. Sets out critera that must be included in selecting among grant applicants. Specifies local government eligibility requirements. Allows the Deparment to clean up scrap tire collection sites that are determined to be a nuisance. Sets out reporting requirements. Amends GS 130A-309.06(c) and GS 130A-309.09C(g) to make conforming changes. Requires any tax proceeds remaining in the Scrap Tire Disposal Account as of the effective date of the section must continue to be used for the same purpose and in the same manner as the Account, except the funds in the Account cannot be used for grants to encourage the use of processed scrap tire materials. Effective July 1, 2013.

Part XV, Repeal Tobacco Discount

Repeals GS 105-113.21(a1) (distributor discount) and GS 105-113.39(a) (wholesaler or retailer discount), concerning a 2% discount received for filing a timely report and payment under GS 105-113.18. Makes technical changes. Changes effective July 1, 2014 and applies to returns filed for periods beginning on or after that date.

 

 

 

 

 

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