AN ACT TO REDUCE SALES TAX ASSESSMENT AGAINST CERTAIN CONTINUING CARE RETIREMENT COMMUNITIES AND TO ALLOW THE DEPARTMENT OF HEALTH AND HUMAN SERVICES TO SEEK A TEMPORARY WAIVER FROM THE TIME LIMITS FOR ABLE-BODIED ADULTS WITHOUT DEPENDENTS PARTICIPATING IN THE FOOD AND NUTRITION SERVICES PROGRAM IN RESPONSE TO THE COVID-19 PANDEMIC.
House committee substitute makes the following changes to the 2nd edition.
Deletes the 2nd edition entirely and adds the following new provisions reducing sales tax assessments against certain continuing care retirement communities and authorizing the Department of Health and Human services to seek a temporary waiver from food and nutrition services program in response to COVID-19.
Section 1(a) amends Article 9 of GS Chapter 105 to enact new GS 105-244.4B providing forgiveness of certain sales tax assessments of Continuing Care Retirement Communities (CCRC). Allows the Secretary of Revenue to forgive 75% of a sales and use tax assessment against a taxpayer who requests relief for State and local sales and use taxes and waive any penalties imposed as part of the assessment when the assessment is the result of an audit of the taxpayer by the Department of Revenue (Department), so long as all of the 8 factors listed apply. Included in the list is that the taxpayer remitted all the sales and use taxes it collected during the period, had not been directed by the Department in a prior audit to collect sales and use taxes in the circumstance that is the basis of the assessment as reflected in the written audit comments in the prior audit, and the taxpayer has not received other specific written guidance from the Department advising the taxpayer to collect sales and use taxes that are the bases of the assessments for which the taxpayer seeks reduction. Provides procedures that the taxpayer must meet for requesting the reduction. Applies to the following for a tax period ending prior to January 1, 2021: a proposed assessment or portion of a proposed assessment; an assessment that becomes collectible under GS 105-241.22; a pending request for review case; and a pending contested case hearing at the Office of Administrative Hearings. Excludes a refund for sales or use taxes that were originally collected and remitted to the Department. Holds harmless CCRC residents from whom a provider did not collect sales and use taxes at the time of the sale. Excludes an assessment attributed to failure to collect sales and use tax on items sold on or after January 1, 2021.
Section 1(b) amends GS 105-164.3 to add definitions of the following terms as those terms are defined in GS 58-64-1: continuing care, facility, provider, and resident.
Section 1(c) amends Article 5 of GS Chapter 105 to enact new GS 105-164.4L requiring providers of continuing care facilities to collect and remit sales and use tax on items sold to guests or residents who do not reside in a nursing or adult care home. Example of items for which taxes must be collected include prepared meals, alcohol, medical supplies, and laundry services. Where a provider charges a period fee that includes taxable and nontaxable items, the provider must determine the allocated price for taxable items within the fee and apply sales tax to that portion of the fee. Prohibits providers from recovering sales and use tax from residents not collected at time of sale.
Section 1(d) amends GS 58-64-25 by adding a new subsection (c) prohibiting providers of continuing care facilities from adjusting entrance fees, periodic charges, or recurring fees to recoup from residents sales and use tax not collected by the provider. Makes any provisions in continuing care contracts to the contrary unenforceable. Requires disclosure of the limitations on fee adjustments.
Section 1(e) authorizes the Revisor of Statutes to renumber subdivisions of GS 105-164.3 and make technical conforming changes consistent with the act.
Section 2 authorizes the Department of Health and Human Services to seek a temporary waiver from the US Department of Agriculture for time limits established under federal law for able-bodied adults without dependents (ABAWD) participating in the Food and Nutrition Services Program. Effective July 1, 2020 and expires one year from this date.
Section 3 provides for severability of the provisions of the act.
Changes the short and long titles of the act accordingly.
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