AN ACT TO FACILITATE RAPID RESPONSE TO STATE DECLARED DISASTERS BY EXEMPTING CERTAIN BUSINESSES AND EMPLOYEES FROM REGISTRATION AND TAX LAWS DURING THE DISASTER RESPONSE PERIOD.
Identical to H 538, filed 4/2/19.
Enacts new GS 166A-19.70A as follows. Defines terms that are used in the statute and sets out the statute's purpose. Provides that an out-of-state business performing disaster-related work in the state during a disaster response period at the request of a critical infrastructure company (a registered public communications provider or a registered public utility, as defined in the statute) is not considered to be conducting business in the state and is therefore exempt from franchise tax, income tax, S-corporation income tax, information returns, unemployment tax, workers' compensation, and registration with the Secretary of State to transact business in the state. These exemptions cease to apply when the disaster response period expires. Disaster-related work is defined as repairing, renovating, installing, building, or performing services on critical infrastructure that has been damaged, impaired, or destroyed as a result of a disaster or emergency in an area covered by the disaster declaration. Provides that an out-of-state employee (meaning a nonresident who is an employee of an out-of-state business entitled to the relief described above or a nonresident employee of a critical infrastructure company temporarily in the state to perform disaster-related work during the disaster response period) is not required to pay state income tax, or file an income tax return, on earnings received for disaster-related work performed during a disaster response period. Provides that the employer of an out-of-state employee is not required to withhold income tax from the wages of the employee. Requires a critical infrastructure company that requests an out-of-state business to perform disaster-related work during the disaster response period to notify the State Emergency Response Team (Team) within 30 business days of the out-of-state business's entry into the state. Sets out information that must be included in the notice. Requires the Team to disseminate the information to the appropriate state agencies. Makes conforming changes to GS 96-9.2, GS 97-13, GS 105-125, GS 105-130.11, GS 105-131.7, GS 105-153.4, GS 105-153.8, GS 105-154, and GS 105-163.2.
Enacts new GS 55-1-51 by providing that an out-of-state business performing disaster-related work in this state during a disaster response period at the request of a critical infrastructure company is not required to obtain a certificate of authority from the Secretary of State. Provides that a person issued a temporary license by the Department of Revenue to import, export, distribute, or transport motor fuel in this state in response to a disaster declaration is not required to obtain a certificate of authority from the Secretary of State to transact business in the state for the duration of the temporary license.
Amends GS 105-130.5 by adding to the required additions to federal taxable income in determining state net income payments made to a related party not subject to tax in accordance with the policy in new GS 166A-19.70A, to the extent the payments are deducted in determining federal taxable income.
Enacts new GS 105-449.69A allowing the issuance of a temporary license to import, export, distribute, or transport motor fuel in the state in response to a disaster declaration, which expires upon the expiration of the disaster declaration. Requires filing an application for a temporary license within seven calendar days from the date of the disaster declaration. Requires the application include specified information. Allows issuance of a temporary licence without requiring the applicant to file a bond or irrevocable letter of credit and without requiring the applicant to be authorized to transact business in the state with the Secretary of State.
Applies to taxable years beginning on or after January 1, 2019.