Bill Summary for S 628 (2017-2018)

Summary date: 

Apr 5 2017
S.L. 2017-204

Bill Information:

View NCGA Bill Details2017-2018 Session
Senate Bill 628 (Public) Filed Tuesday, April 4, 2017
AN ACT TO MAKE VARIOUS CHANGES TO THE REVENUE LAWS.
Intro. by Tillman, Brock, Tucker.

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Bill summary

Part I. Business Tax Changes

Amends GS 105-114, deleting subsection (a), which provides that taxes levied upon persons and partnerships in Article 3 are for the privilege of engaging in business or doing the act named. Modifies subsection (a1) setting out the scope of the tax levied under Article 3, providing that the tax levied under the Article upon corporations is a privilege tax (currently, a privilege or excise tax) levied upon corporations organized under the laws of North Carolina and corporations not organized under the laws of North Carolina, as described. Makes conforming changes to subsections (a2), (a3), and (a4). Amends subsection (a3) to provide that the tax levied in Article 3 is for the income year of the corporation in which the taxes become due (currently, for the fiscal year of the State in which taxes become due, except that the taxes levied in GS 105-122 are for the income year of the corporation in which the taxes become due). Amends subsection (a4), prohibiting double taxation of holding companies under GS 105-122 and GS 105-202.2, to remove the provision limiting the application of GS 105-122 only to the extent those taxes levied exceed the taxes levied in other sections of Article 3 on the corporation or on a limited liability company whose assets must be included in the corporations's tax base under GS 105-114.1.

Amends GS 105-120.2(c), describing a holding company as a corporation that satisfies at least one of the specified conditions, to amend the second condition that constitutes a holding company to be that the corporation receives during a taxable year more than 80% of its gross income from corporations in which it owns directly or indirectly more than 50% of the outstanding stock, voting capital interests, or ownership interests (currently, owning ownership interests is not included).

Expands GS 105-122(a), providing that an annual franchise or privilege tax is imposed on a corporation doing business in North Carolina for the privilege of doing business in North Carolina and for the continuance of articles of incorporation or domestication of each corporation in North Carolina. Makes organizational change to separate existing provisions concerning the corporate tax base and tax rate, both currently in subsection (d). Places provisions concerning the corporate tax base in subsection (d). Provides that a corporation's tax base is the greater of (1) the proportion of its net worth, (2) 55% of its appraised value as determined for ad valorem taxation of all the real estate and tangible personal property in the state, or (3) its total actual investment in tangible property in the state. Makes further organizational and technical changes to subsection (d). Adds new subsection (d2) providing for the corporate tax rate, substantively identical to the current tax rate. Sets the tax rate at $1.50 per $1,000 of the corporation's tax base as determined in subsection (d), and prohibits the tax imposed to be less than $200. Effective for taxable years beginning on or after January 1, 2018, and is applicable to the calculation of franchise tax reported on the 2017 and later corporate income tax returns.

Amends GS 105-129.106(b), concerning the tax credit for rehabilitating a non-income-producing historic structure, clarifying that in the event that the taxpayer is a transferee of a State-certified historic structure for which rehabilitation expenses were made, the taxpayer is allowed a credit for the rehabilitation expenses made by the transferor if the transfer takes place before the structure is placed in service. Adds requirement for the transferor to provide the transferee with documentation detailing the amount of rehabilitation expenses and credit. Effective for taxable years beginning on or after January 1, 2017.

Amends GS 105-130.4(a), containing the definitions for terms pertaining to the allocation and apportionment of income for corporations. Amends the definition provided for apportionable income to now define the term to mean all income that is apportionable under the US Constitution, including income that arises from transactions and activities in the regular course of the taxpayer's trade or business, or tangible and intangible property if the acquisition, management, employment, development, or disposition of the property is or was related to the operation of the taxpayer's trade or business. Adds the term "business activity" (previously provided in subsection (b)). Makes technical and organizational changes.

Makes further clarifying, conforming and technical changes to GS 105-130.4 concerning the allocation and apportionment of income for corporations. Amends subsection (m), pertaining to apportionable income of a railroad company, to provide that the records from which the company is to apportion NC income must be kept in accordance with generally accepted accounting principles (previously, in accordance with the standard classification of accounts prescribed by the Interstate Commerce Commission). Makes organizational changes to subsection (m)'s defined terms. Deletes subsections (n) and (q), setting out provisions for the apportionable income of telephone and telegraph companies. Consolidates subsection (p), concerning approtionable income of a motor carrier of passengers (now referred to as a motor carrier of people) into subsection (o), concerning apportionable income of a motor carrier of property. Now provides that vehicle miles in amended subsection (o) means miles traveled by vehicles owned or operated by the company based on (1) miles on a scheduled route, (2) miles hauling property for a charge, or (3) miles carrying passengers for a fare. Amends subsection (r), concerning the apportionable income of an excluded corporation and of all other public utilities, to set out the definitions of excluded corporation and public utility (previously provided in subsection (a)). Adds new subsection (s2), establishing that receipts from transportation of a petroleum-based liquids pipeline company or gas pipeline company are to be apportioned by multiplying the income by a fraction, the numerator being the number of traffic units in North Carolina during the tax year, and the denominator being the total number of traffic units everywhere during the tax year. Provides that traffic unit means (1) barrel mile, (2) cubic foot mile, and/or (3) another appropriate measure of product movement. Effective for taxable years beginning on or after January 1, 2017.

Amends GS 105-130.7B, concerning limitations on qualified interest for certain indebtedness, to modify the definition of qualified interest expense as the amount of net interest expense paid or accrued to a related member in a taxable year with the amount limited to the taxpayer's proportionate share of interest paid or accrued to a person who is not a related member during the same taxable year (previously, limited the amount to the greater of 15% of the taxpayer's adjusted taxable income or the taxpayer's described proportionate share). Makes conforming change to repeal GS 105-130.7B(b)(1), defining adjusted taxable income for purposes of the statute. Effective for taxable years beginning on or after January 1, 2017. 

Amends GS 105-131.5, pertaining to prorating a part-year resident shareholder of an S corporation's attributable income to the State, to refer to GS 105-153.4 (provisions for calculating NC taxable income for taxable years beginning on or after January 1, 2014, and before January 1, 2015) instead of GS 105-134.5 for determining the pro rata share. Effective for taxable years beginning on or after January 1, 2014.

Amends GS 105-131.7 to make technical corrections to the statutory references concerning income attributable to the State and income not attributable to the State of an S corporation.

Amends GS 105-134.1 and GS 105-153.3, the definitions applicable to individual income tax provisions, to add a new subsection (5a) to each statute defining guaranteed payments as the term is defined in section 707(c) of the Internal Revenue Code.

Amends GS 105-134.5(d) and GS 105-153.4(d) to make clarifying changes to the formula used to determine a shareholder's pro rata share of S corporation income. In order to calculate the numerator of the fraction provided in subsection (b) of each statute for a partner in a partnership or a member of another unincorporated business that has one or more nonresident partners or members and operates in one or more other states, the amount of the partner's or member's distributive share of income of the business (as modified by GS 105-153.5 and GS 105-153.6 for the calculation in GS 105-153.4) plus any guaranteed payments made to a partner from the partnership that is includable in the numerator is determined by multiplying the total net income of the business by the ratio ascertained under the provisions of GS 105‑130.4.

Amends GS 105-154(c), pertaining to information returns of partnerships. Requires the information return filed with the Secretary of Revenue to include each partner's distributive share of the partnership's income (previously, the part of each person's distributive share of the net income that represents corporation dividends). Provides that a partner's distributive share of partnership net income includes any guaranteed payments made to a partner as defined in GS 105-134.1. Amends GS 105-154(d), pertaining to the payment of tax on behalf of a nonresident owner or partner. Requires the manager of the business to report information concerning the earnings of the business in North Carolina (previously, just the earnings of the business in North Carolina), the distributive share of the income of each nonresident owner or partner, and any other information required by the Secretary. Adds that the distributive share of the income of each nonresident partner includes any guaranteed payments made to the partner as defined in GS 105-134.1. In requiring the manager to pay the tax on each nonresident owner or partner's share of the income, permits the business to deduct the payment for each nonresident owner or partner from the owner or partner's distributive share of the income of the business in North Carolina (was, of the profits of the business in North Carolina).

Amends GS 105-228.4A, concerning tax on captive insurance companies. Provides that two or more captive insurance companies under common ownership and control are taxed under the statute as a single captive insurance company, other than when a protected cell captive insurance company or a special purpose captive insurance company is structured in a manner similar to that of a protected cell captive insurance company. Modifies subsection (f), concerning total tax liability under the statute for a captive insurance company, to now provide the following. Establishes that the aggregate amount of tax payable under the statute for a captive insurance company, which has a cell or series structure similar to that of a protected cell captive insurance company, to be no more than $100,000 and no less than $5,000. Sets the minimum tax under the statute for a protected cell captive insurance company or a special purpose captive insurance company, which has a cell or series structure similar to that of a protected cell captive insurance company, to not be less than $5,000 and applies to the protected cell captive insurance company or special purpose captive insurance company as a whole and not to each cell or series. The maximum tax to be paid by a protected cell captive insurance company or a special purpose captive insurance company, which has a cell or series structure, is to be the greater of either $5,000 or the aggregate of the tax liabilities of the core and each cell or series within the insurance company. The maximum tax liability attributed to any one cell or series of the insurance company is set at $100,000. Adds new subsection (g) to define common ownership and ownership and control. Effective for taxable years beginning on or after January 1, 2017.

Amends GS 105-228.5(d)(3), setting forth an additional tax on property coverage contracts, to clarify that the additional tax imposed on property coverage contracts is a special purpose assessment based on gross premiums and not a gross premiums tax.

Provides the following clarifications: The gross premiums tax is a tax imposed on the gross premiums of insurers, Article 65 corporations, health maintenance organizations, and self‑insurers; entities subject to the gross premiums tax are not subject to franchise or income taxes; and in SL 2009‑548, the General Assembly broadened the taxes against which the business and energy tax credits could be taken from income and franchise taxes to income, franchise, and gross premiums taxes.

Further provides: The gross premiums tax rate is set in GS 105‑228.5(d)(1) and (2); separate and apart from the gross premiums taxes, GS 105‑228.5(d)(3) imposes an additional tax that is calculated using a person's gross premiums but is not considered part of the gross premiums tax imposition; the Department of Revenue has historically administered the gross premiums tax and the additional tax imposed under GS 105‑228.5 as two separate and distinct taxes; satisfied with this administration, the General Assembly did not address the separate treatment of the two taxes in SL 2009‑548; and it is the intent of this provision to further clarify for taxpayers the accuracy of and to endorse the Department's interpretation of the current and continuing state of the law by expressly codifying the long‑standing interpretation of the additional tax imposed by GS 105‑228.5(d)(3) as a separate and distinct tax that is based upon gross premiums but is not a gross premiums tax.

Part II. Sales and Use Tax

Amends GS 105-164.3, setting forth the definitions for the sales and use tax provisions. Amends the definitions provided for bundled transaction; landscaping service; motor vehicle service contract; real property; real property contract; repair, maintenance, and installation services; and service contract. Adds and defines the terms capital improvement, free-standing appliance, and mixed transaction contract.

Amends GS 105-164.4(a), setting forth the percentage rates for the privilege tax imposed on retailers and certain facilitators. Amends subdivision (1), providing that the general rate of tax applies to the sales price of each item or article of tangible personal property sold at retail and not subject to tax under another subdivision of subsection (a). Adds that a sale of a free-standing appliance is a retail sale of tangible personal property, regardless of whether the property is installed or applied to real property. Makes organizational and technical changes to consolidate subdivision (13) into subdivision (16), providing that a mixed transaction contract and real property contract are taxed in accordance with GS 105-164.4H.

Amends GS 105-164.4B(a) to establish that a service is sourced where the purchase can potentially first make use of the service, except as otherwise provided by the statute.

Amends GS 105-164.4H, pertaining to taxation of real property contracts.

Adds new subsection (a1), providing as follows. Generally, services to real property are retail sales of, or the gross receipts derived from, repair, maintenance, and installation services and subject to tax in accordance with GS 105‑164.4(a)(16) (as amended) unless a person substantiates that a transaction is subject to tax as a real property contract in accordance with subsection (a) of this section, subject to tax as a mixed transaction in accordance with subsection (d) of this section, or the transaction is not subject to tax. A person may substantiate that a contract is a real property contract by records that establish the transaction is a real property contract or by receipt of an affidavit of capital improvement. The receipt of an affidavit of capital improvement from another person accepted in good faith establishes that the subcontractor or other person receiving the affidavit should treat the transaction as a capital improvement, and the transaction is subject to tax in accordance with subsection (a) of this section. A person that issues an affidavit of capital improvement is liable for any tax on the transaction if it is determined that the transaction is not a capital improvement. Directs the Secretary to determine when a person must issue an affidavit of capital improvement. The Secretary can establish guidelines for transactions where an affidavit of capital improvement is not required, but rather a person may establish by records that such transactions are subject to tax in accordance with subsection (a) of this section. Adds to subsection (b1), concerning joint and several liability in real property contracts, to provide that a person who receives an affidavit of capital improvement accepted in good faith is not liable for any tax on the gross receipts from the transaction if it is determined that the transaction is not a capital improvement. 

Amends subsection (d), pertaining to taxation of mixed transaction contracts. Provides that (1) if the price of the taxable repair, maintenance, and installation services included in the contract does not exceed 25% (was, 10%) of the contract price, then the repair, maintenance, and installation services portion of the contract, and the tangible personal property, digital property, or services used to perform that service, are taxable as a real property contract in accordance with this provision and (2) if the price of the taxable repair, maintenance, and installation services included in the contract is equal to or greater than 75% (was, 10%) of the contract price, then the gross receipts derived from the capital improvement portion of the contract are taxable as repair, maintenance, and installation services in accordance with Article 5. Amends subsection (e), setting forth the definitions that apply to the Article. Modifies the definitions for capital improvement and remodeling. Adds and defines the term renovation

Amends GS 105-164.4I, pertaining to the taxation of service contracts, to delete the exemptions provided in subsection (b). Expands the exceptions set out in subsection (c) to add a contract to provide a certified operator for a wastewater system and a contract to provide landscaping, pest control, or moving services. Makes technical and clarifying changes.

Amends GS 105-164.13, delineating express exemptions from the retail sale and use tax. Modifies and adds to five subdivisions (subdivision (61), concerning a motor vehicle service contract; subdivision (61a), concerning certain repair, maintenance, and installation services and service contracts; subdivision (61c), concerning installation charges that are part of the sales price of tangible personal property purchased by a real property contractor to fulfill a real property contract for an item installed or applied to real property; subdivision (62), concerning an item or repair, maintenance, and installation services to maintain, monitor, inspect, or repair tangible personal property, real property, or digital property pursuant to a service contract; and subdivision (65), concerning sales of certain items from a professional motorsports racing team). Makes further clarifying, organizational, and technical changes to those subdivisions. 

Amends GS 105-164.14(a) to authorize a tax refund for an interstate carrier of part of the sales and use taxes paid by it on the purchase in this state of railway cars and locomotives and fuel, lubricants, repair parts, accessories, and repair, maintenance, and installation services of a motor vehicle, railroad car, locomotive, or airplane the carrier operates (previously, did not include in the refund the repair, maintenance, and installation services for the vehicles, cars, locomotives or airplanes). Makes conforming changes to subdivision (1) concerning the information and proof required to be furnished by an applicant to the Secretary for a refund. Effective retroactively to January 1, 2017.

Establishes that, if the Secretary of Revenue determines that a seller paid sales and use taxes on a product and the seller used the product purchased for a taxable repair, maintenance, and installation service to real property, the Secretary may allow the seller to offset the sales tax liability on the taxable repair, maintenance, and installation service with the sales and use tax paid on the products. Effective retroactively to January 1, 2017, and expires on July 1, 2018.

Part III. Tax Collection and Enforcement

Amends GS 105-236(a), setting forth civil penalties and criminal offenses.

Modifies subdivision (7), making any person who willfully attempts or any person who aids or abets any person to attempt in any manner to evade or defeat a tax or its payment, in addition to other penalties provided by law, guilty of either (1) a Class F felony if violation involves less than $100,000 or (2) a Class C felony for any other violation (currently, guilty of a Class H felony, with no differentiation as to the amount involved in the violation). 

Modifies subdivision (9) to make the willful failure to file a tax return, supply information, or pay any tax a Class 1 misdemeanor for the first offense and a Class H felony for any second or subsequent offense (currently, Class 1 misdemeanor for any offense).

Adds new subdivision (9b), providing that a person who commits identity theft in violation of GS 14-113.20 is guilty as provided in GS 14-113.22(a) (punishable as a Class G felony or a Class F felony depending on aggravated factors). Provides that each document filed with identifying information of another can be considered a separate offense. Provides that identifying information can also include legal name, date of birth, taxpayer identification number, and federal identification number. 

Amends GS 105-235, to permit the Secretary of Revenue, at the Secretary's discretion (previously, mandatory), to consider each day of the described failure, refusal, or neglect to be a separate and distinct offense. 

Amends GS 105-251.2, pertaining to compliance information requests, to add two new subsections. New subsection (c) requires, for any year in which a payment settlement entity is required to make a return pursuant to Section 6050W of the Internal Revenue Code, the entity to submit the information in the return to the Secretary at the time the return is made. New subsection (d) requires reports made under the statute to be submitted in electronic format as requested by the Secretary, and subjects any report not timely filed under the statute to a $1,000 penalty.

Amends GS 39-23.1, setting out the definitions that apply to the Uniform Voidable Transactions Act, to define voidable transaction, providing the term does not include payment to the State or a political subdivision of the State of taxes, debts, fines, penalties, or other obligations or amounts. Makes conforming change to GS 39-23.8(e), listing transfers that are not voidable under GS 39-23.4(a)(2) or GS 39-23.5.

Part IV. Administrative Changes

Amends GS 105-241.7(d) to provide that a notice of the proposed denial of a request for a refund issued pursuant to subsection (c) and a notice of denial of a request for a refund issued pursuant to subsection (c1) of the statute must contain the specified information. Makes conforming changes to the specified information to be included in the notice under subsection (d). Amends GS 105-241.7(f), establishing that a proposed denial of a refund and a denial of a refund by the Secretary of Revenue are presumed to be correct.

Amends GS 105-241.11, requiring a taxpayer's request for a Department review of a proposed denial of a refund or a proposed assessment of tax to be in the form prescribed by the Secretary of Revenue and include an explanation for the request for review. Makes clarification in subsection (c) to provide that a taxpayer who does not request a Departmental review of a proposed assessment cannot request a Departmental review of a failure to pay a penalty based on the assessment but is assessed on a subsequent date in another notice. Makes clarifying change to the statute's title.

Renames GS 105-241.12, as Taxpayer inaction. Expands the statute's provisions to include when a taxpayer fails to respond to the Department's request for additional information under GS 105-241.13(a), resulting in the proposed denial as final and not subject to further administrative or judicial review. Makes conforming change to subsection (b), which requires the Department of Revenue to send the taxpayer a notice of collection before the Department collects a proposed assessment that becomes final under subsection (b).

Modifies the actions the Department of Revenue must take when a taxpayer files a timely request for a Department review of a proposed denial of a refund or a proposed assessment in GS 105-241.13(a). Now provides that the Department must conduct a review of the proposed denial or proposed assessment and (1) grant the refund or remove the assessment, (2) adjust the amount of the tax due or refund owed, or (3) request additional information from the taxpayer concerning the requested refund or proposed assessment. Makes conforming changes providing that a taxpayer's failure to respond to the Department's request for additional information by the requested response date will result in the refund or assessment being subject to the provisions of GS 105‑241.12. Adds new subsection (a1), setting out that if a taxpayer timely requests a Departmental review of a proposed assessment and thereafter pays the amount due or the amount due as adjusted by the Department, the Department may accept payment and take no further action on the request for Departmental review, unless the taxpayer states in writing that the taxpayer wishes to continue the Departmental review. In the case that the review is not continued, the taxpayer may request a refund of taxes paid pursuant to GS 105‑241.7(b).

Modifies subsection (b) of GS 105-241.13, requiring the Department to schedule a conference with the taxpayer when the actions under subsection (a) or (a1) of the statute do not resolve the Departmental review. Clarifies that the taxpayer is not limited by the explanation set forth in the taxpayer's request for review in presenting any objections to the proposed denial of refund or proposed assessment at the conference. Modifies subsection (c) that sets forth at least one outcome that must occur after the conference, providing that one outcome can be that the Department and the taxpayer agree on a resolution (was, agree on a settlement).

Makes technical change to GS 105-241.16 (judicial review of decision after contested case hearing) to replace the term "taxpayer" with "party." 

Makes conforming change to GS 105-241.22 (collection of tax) to reflect changes made to GS 105-241.12 concerning taxpayer inaction.

Makes technical change to GS 105-113.4A (tobacco product licenses) to reference a licensee instead of a license holder. Renames GS 105-113.4B, Cancellation or revocation of license (was, Reasons why the Secretary can cancel a license). Conforms the language of GS 105-241.22 and GS 105-113.4A to this change. Clarifies that the Secretary can revoke the license of a licensee that fails to obtain a license in a timely manner or for all places of business as required by Article 2A after holding a hearing on whether the license should be revoked.

Renames GS 105-449.47 Licensure of vehicles (was, Registration of vehicles). Makes conforming changes to the following statutes in Articles 36B: GS 105-449.44(c), GS 105-449.45(b), GS 105-449.47A, GS 105-449.49(a), GS 105-449.51, and GS 105-449.52.

Makes clarifying change to GS 105-449.44(c), providing how to determine the amount of fuel used in the State for purposes of taxing carriers using fuel purchased outside the State, to provide that the number of qualified motor vehicles of a carrier that is not licensed under Article 36B is the number of qualified motor vehicles licensed or registered by the motor carrier in the carrier's base state under the International Registration Plan.

Amends GS 105-449.47, renamed Licensure of vehicles, to provide that the statute applies to a motor carrier that operates a recreational vehicle used in connection with any business endeavor (was, that is considered a qualified motor vehicle).

Renames GS 105-449.47A Denial of license application and decal issuance. Makes change to refer to the Secretary's revocation (instead of cancellation) of a license. Makes conforming changes. 

Renames GS 105-449.73 Denial of license application, establishing that the Secretary of Revenue can refuse to issue a license if the applicant has done any of the specified actions. Provides for denial when the applicant had a license or registration issued under Article 36C or 36A revoked by the Secretary (was, revoked for cause), or had a motor fuel license or registration issued in another state revoked (was, cancelled for cause). Amends GS 105-449.74 (Issuance of a license for gasoline, diesel, and blends) to refer to a licensee instead of a license holder. Makes conforming changes to reflect the above revisions to: GS 105-449.68, GS 105-449.75, GS 105-449.76, GS 105-449.77(b), GS 105-449.92, GS 105-449.97(a), GS 105-449.98(b), and GS 105-449.104. Makes clarifying changes to GS 105-449.76.

Amends GS 105-449.110(a) to require the Secretary of Revenue, upon determining that an application for refund is incorrect, to send the applicant a proposed denial of the request for a refund. Establishes that the provisions of Article 9 apply to the procedure for requesting a review of proposed denial of a refund sought under Article 36C.

Renames GS 105-449.134 Denial, revocation, or cancellation of a license and adds that the Secretary may also revoke a license. Amends GS 105-449.135 (Issuance of license and notification of changes pertaining to alternative fuel in Article 36D) to refer to a "licensee" instead of a "license holder." Makes conforming changes to reflect those revisions to GS 105-449.135 and GS 105-449.139.

Makes clarifying changes to GS 119-19 (in Article 3, Gasoline and Oil Inspection). Authorizes the Secretary of Revenue to cancel or revoke a license issued under the Article. Changes language to refer to a "licensee" instead of a "license holder." Makes conforming changes.

Amends GS 105-259(b) to allow tax information to be disclosed for the purpose of providing to the Office of Child Support and Enforcement of the Department of Health and Human Services State tax information that relates to noncustodial parent location information as required under 45 CFR 303.3 and Title IV-D of the Social Security Act.

Part IV is effective when it becomes law and applies to requests for review filed on or after that date and to requests for review pending on that date for which the Department reissues a request for additional information, allows the taxpayer time to respond by the requested response date, and provides notification to the taxpayer that failure to timely respond to the request will result in the request for review being subject to the provisions of GS 105‑241.12.

Part V. Property Tax

Amends GS 105-330.3(a1), pertaining to the listing requirements for unregistered classified motor vehicles. Modifies the provisions that apply to any months for which the applicable vehicle was not taxed between the date the registration expired and the start of the current registered vehicle tax year. Provides that the value of the motor vehicle is determined as of January 1 of the year in which the taxes are computed. Further provides that the taxes are due on September 1 following the date the notice was prepared. Adds that taxes are payable at par or face amount if paid before January 6 following the due date, and taxes paid on or after January 6 following the due date are subject to interest charges. Provides that interest accrues on taxes paid on or after January 6 pursuant to GS 105-360. Eliminates previous interest provisions. Effective for taxes imposed for taxable years beginning on or after July 1, 2017.

Amends GS 105-330.6(c), concerning the surrendering of plates and applying for a tax release or refund, to apply the statute's provisions to an owner of a classified motor vehicle who pays the tax as required by GS 105-330.4(a) (currently, to the owner of a classified motor vehicle listed pursuant to GS 105-330.3(a)(1)).

Makes organizational change to GS 105-338, concerning the allocation of the valuations of public service property among local taxing units. 

Part VI provides a severability clause.

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