Bill Summary for S 174 (2023-2024)

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Summary date: 

Mar 1 2023

Bill Information:

View NCGA Bill Details2023-2024 Session
Senate Bill 174 (Public) Filed Tuesday, February 28, 2023
Intro. by P. Newton, Perry, Rabon.

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Bill summary

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

Part I.

Amends GS 105-154.1(a), which allows taxed partnership election, enacting new subdivision (5) to include within the described types of partners of partnerships permitted to make the election partnerships that have had a partner that is a partnership at any time during the taxable year. Adds that a partnership partner includes an entity that is classified as a partnership for federal income tax purposes, or an S corporation (did not previously include an S corporation). Makes conforming changes.

Part III.

Amends the definition of “cost price” in GS 105-113.4(2) to include the actual price paid by the person liable for the tax, before any discount, rebate, or allowance, for an item identified as a stock keeping unit by a unique code or identifier.

Amends GS 105-113.88 (Record-keeping requirements) to require that persons who are required to file a report or return under the Article also keep any other information required by the Secretary, specifying that this information must be required by the Secretary in order to determine the person's alcoholic beverage transactions. 

Amends GS 105-449.39 to require that the amount of the credit for motor carriers be determined using the tax rate in effect for the date the fuel is placed into the qualified motor vehicle (was, using the rate in effect for the reporting period).

Amends GS 105-449.46 to also require an interstate motor carrier to maintain records to determine the person's alternative fuel transactions.

Makes a clarifying change in GS 105-449.97(e).

Amends GS 105-449.121 by providing that the records subject to inspection by the Secretary at any reasonable time are those that are subject to audit.

Amends GS 105-449.139 to no longer require that any other information required by the Secretary be recorded by the licensee as a provider of alternative fuel, a bulk end-user, or a retailer, beyond the records of documents used to determine the information provided in a return. Makes a similar change to the recording keeping requirements in GS 119-18. 

Amends GS 105-449.81 by amending the conditions that must be met before an excise tax at the motor fuel rate is imposed on fuel grade ethanol or biodiesel fuel. Requires that the fuel be imported to NC by means of a vessel where fuel grade ethanol or biodiesel (previously did not specify fuel grade) from the vessel is not delivered to a terminal that has been assigned a terminal control number. Amended to also include fuel grade ethanol or biodiesel fuel that is removed from the terminal transfer system and is not subject to the federal excise tax. Imposes the tax on motor fuel that is transferred within the terminal transfer system and is subject, upon transfer, to the federal excise tax or is transferred to a person at a terminal (was, to a person) who is not licensed as a supplier.

Amends GS 105-449.88 to exempt from excise tax fuel grade ethanol or biodiesel transferred between terminals within NC, if the fuel grade ethanol or biodiesel is owned by the same licensed supplier.