Bill Summary for S 628 (2017-2018)

Summary date: 

Aug 3 2017

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

Conference report makes the following changes to the 5th edition.

Deletes Section 1.10(a), which would have amended GS 105-228.4A, related to taxes imposed on captive insurance companies. 

Deletes language in Section 11 requiring a study related to gross premiums on insurance contracts for property coverage. Replaces it with three new subsections. Subsection (a) amends GS 105-228.5(d)(3) to provide that the additional tax imposed on property coverage contracts is a special purpose assessment based on gross premiums and not a gross premiums tax. Subsection (b) provides that if a taxpayer elected to take a business energy and tax credit against the gross premiums tax for a taxable year beginning before January 1, 2017, that taxpayer may take an installment or carryforward of the credit in certain circumstances. The taxpayer may also, for a limited period of time, apply to the Department of Revenue for a refund of excess tax paid related to this clarification of law. Subsection (c) explains the legislative intent behind the changes in Section 11, which includes clarification of the law and avoiding potential litigation. 

Revises Section 2.8A, which adds a new GS 105-244.4, related to reduction of certain sales tax assessments. Amends new GS 105-244.4(a)(5) to extend the period of time a taxpayer has to submit to the Secretary of Revenue either a request for a reduction in the amount of a tax assessed or a statement disagreeing with the assessment. The time period is extended from 45 to 120 days. 

Adds Section 4.1(e), which amends GS 105-241.16, to provide that any aggrieved party (was, taxpayer) may seek judicial review of a decision in a contested case hearing. 

Revises Section 4.8, which previously included several changes to GS 143B-1325(d) related to consolidation of information technology under the Department of Information Technology. Most of those changes were included in SL 2017-57, Section 37.4(b).  This conference report retains amendments to GS 143B-1325(d), as amended by SL 2017-57, which require reports on transition planning to be made to the Department of Revenue, as well as other state agencies. The changes also provide that the information technology transfers and consolidation from Revenue to Information Technology may not take place until the system complies with federal security standards related to federal taxpayer information.

Revises Section 4.9 to change the effective dates applicable to Part 4.  Provides that Section 4.1(e), which governs judicial review of contested cases, is effective retroactively to January 1, 2012. Provides that the remainder of the part is effective when it becomes law.

Revises Section 5.4(b) to change the effective date for Part 5 from July 1, 2017, to July 1, 2018. Part 5 includes several changes related to property tax.

Revises Section 6.1(a), which amends GS 159-32, related to daily deposits by local governments. Increases the amount a local governing board may authorize the local government to retain before depositing from $250 to $500.  

Enacts new GS 105-269.8 to allow an individual entitled to a refund of income taxes under Part 2 of Article 4 of GS Chapter 105 to elect to contribute all or part of the refund to be used for early detection of breast and cervical cancer at the Cancer Prevention and Control Branch of the Division of Public Health of the Department of Health and Human Services. Directs the Secretary of Revenue to provide appropriate language and space on the individual income tax form with an explanation that the contribution is irrevocable and will be used for early detection of breast and cervical cancer only. Directs the Secretary of Revenue to transmit contributions made pursuant to this statute to the State Treasurer, and directs the State Treasurer to distribute the contributions to the Cancer Prevention and Control Branch to be used in accordance with North Carolina's Breast and Cervical Cancer Control Program's policies and procedures. Expires for taxable years beginning on or after January 1, 2021. Clarifies that funds generated by this act are not intended to replace current appropriations for early detection of breast and cervical cancer. Effective for taxable years beginning on or after January 1, 2017.

Amends GS 105-449.81, as amended, to impose an excise tax at the motor fuel rate on motor fuel that is fuel grade ethanol or biodiesel fuel if it is imported to the State by a transport truck, a railroad tank car, a tank wagon, or a marine vessel where ethanol or biodiesel from the vessel is not delivered to a terminal that has been assigned a terminal control number by the IRS (previously had no requirement related to the terminal). Directs the Department of Revenue to notify taxpayers impacted by this change within 15 days of the legislation being enacted into law that motor fuel tax is not due at the time of importation when that fuel is delivered to a terminal that has been assigned a terminal control number by the IRS.

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