AN ACT TO UPDATE THE REFERENCE TO THE INTERNAL REVENUE CODE, TO DECOUPLE FROM CERTAIN PROVISIONS OF THE FEDERAL TAX INCREASE PREVENTION ACT OF 2014, TO MODIFY THE MOTOR FUELS TAX RATE, AND TO MAKE CERTAIN REDUCTIONS WITHIN THE DEPARTMENT OF TRANSPORTATION FOR THE 2014-2015 FISCAL YEAR.
Senate committee substitute makes the following changes to the 1st edition:
Changes the short and long titles.
Amends GS 105-130.5B(c) and GS 105-153.6(c) to update and provide that for the purposes of those provisions, the definition of section 179 property has the same meaning as under section 179 of the federal internal revenue code as of January 1, 2015 (was, January 2, 2013).
Amends GS 105-153.5, modifications to adjusted gross income, adding new language that provides that in calculating the itemize deduction amount for taxable year 2014, when electing to take the income exclusion under section 408(d)(8) of the revenue code for qualified charitable distribution from an individual retirement plan by a person 70 1/2 years older or older can deduct the amount that would have been allowed as a charitable deduction under section 170 of the revenue code had the taxpayer not elected to take the income exclusion. Also adds that in calculating the itemize deduction amount for taxable year 2014, the amount allowed as a deduction for interest paid or accrued during the taxable year under section 163(h) of the Code with respect to any qualified residence must not include the amount for mortgage insurance premiums treated as qualified residence interest. Deletes these same provisions from (d) of the statute, concerning decoupling adjustments.
Provides that the previous effective date, effective when bill becomes law, of the entire bill in the 1st edition is now the effective date for only Part 1 of the bill, regarding IRC updates.
Provides that effective March 1, 2015, notwithstanding GS 105-449.80, the motor fuel excise tax will be 35 cents a gallon. Expires January 1, 2016.
Amends GS 105-449.80 to provide that the variable wholesale component of the motor fuel excise tax is the greater of 17 1/2 cents a gallon or 9.9 percent of the average wholesale price of motor fuel for the applicable base period (previously, was the greater of 3 1/2 cent a gallon or 7 percent of the average wholesale price of motor fuel for applicable base period). Further provides that the base period for figuring the wholesale component of the motor fuel excise tax is a 12-month period ending September 30 (previously, there were two six-month base periods, one ending on September 30 and another that ended on March 31). Makes a conforming change to GS 105-449.108. Provides that the Secretary of Revenue (Secretary) sets the tax rate once, for the year beginning on January 1 in accordance with the wholesale price of the base period (previously, Secretary set the rate twice based on the two base periods). Makes conforming changes. Requires the Secretary to notify affected taxpayers of the tax rate for the calendar year beginning January 1. Effective March 1, 2015.
Makes adjustments to funding for and appropriations from the State Highway Trust Fund for fiscal year ending June 30, 2015, including decreasing funds for the Strategic Prioritization Funding Plan for Transportation Investments to $59,738,140 (was, $67,993,140), and providing that the total appropriations for the Highway Trust Fund will be $1,154,138,140 (was, $1,162,393,140). Further provides that estimated revenues pursuant to the Highway Trust Fund Availability Statement is $1,154,115,000 (was, $1,162,370,000), providing for a Total Highway Trust Fund Availability amount of $1,154,138,140 (was, $1,162,393,140). Makes adjustments to the funding for and appropriations from the Highway Fund, for fiscal year ending June 30, 2015, providing for a $24,765,000 reduction in funds for the operations of the Highway Fund pursuant to this bill, resulting in a Total Highway Fund Appropriation amount of $1,959,377,286 (was, $1,959,377,286). Further adjusts the Revised Total Highway Fund Availability amount to $1,959,377,286 (was, $1,984,142,286) pursuant to reductions made in this bill. Effective when the bill becomes law.
Makes a 2.175 percent reduction in appropriations for the 2014-15 fiscal year to certified fund codes within the Highway Fund, with 36 listed exemptions, resulting in a total reduction of $9,092,616. Reduces appropriations to three specified fund codes by 1 percent, resulting in a total reduction of $4,687,630. Effective when the bill becomes law.
Directs the Director of the Budget and the Secretary of Revenue to make the following reductions for the 2014-15 fiscal year: (1) a $2,575,560 reduction in funds appropriated pursuant to GS 136-41.1, concerning appropriations to municipalities; (2) a $41,275 reduction in total funds appropriated to the Wildlife Resources Fund; and (3) a $41,275 reduction in total funds appropriated to the Shallow Draft Navigation Channel and Lake Dredging Fund. Effective when the bill becomes law.
Directs the Secretary of the Department of Transportation (DOT), by March 1, 2015, to eliminate 500 filled, full-time positions in the DOT resulting in a reduction of $6,250,000. Sets out the priority order for eliminating positions. Requires the Secretary of the DOT to provide notice as soon as practicable to any affected employee. Directs the Secretary of the DOT to eliminate a minimum of 50 vacant positions within the DOT in order to reach a total reduction of $2,076,644. Provides that the amount of funds generated by the reductions in this bill must be used to support the maintenance and operation of the DOT as well as purposes enumerated for the DOT in SL 2014-100. Effective when the bill becomes law.
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