House committee substitute makes the following changes to the 1st edition.
Amends the long title.
Amends the provision directing the Department of Revenue to study existing property tax exemptions, exclusions, deferrals, and other benefits, instead directing the Revenue Laws Study Committee to study those matters. Changes the entity receiving the study report to the General Assembly (was, the Revenue Laws Study Committee).
Deletes the provision directing the Revenue Laws Study Committee to study property tax benefits currently provided to nonprofit entities.
Deletes proposed GS Chapter 105, Article 61, Parts 1 (Municipal Meals Tax Option) and 2 (Municipal Occupancy Tax). Enacts remaining Part 3 (Municipal Sales Tax Option) as new Article 70 under new Subchapter XI in GS Chapter 105. Makes conforming and technical changes. Makes a technical change to the proposed text of a ballot question under that Part.
Makes the act effective when it becomes law (was, October 1, 2017).
Bill Summaries: H 900 SAFE INFRASTRUCTURE & LOW PROPERTY TAX ACT.
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Bill H 900 (2017-2018)Summary date: Jun 14 2017 - View Summary
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Bill H 900 (2017-2018)Summary date: Apr 25 2017 - View Summary
Contains whereas clauses.
Directs the Department of Revenue, in conjunction with local governing entities and boards of commissioners, to study existing property tax exemptions and other benefits to determine whether they are needed or are suitable for repeal. Directs the Department to report its findings to the Revenue Laws Study Committee by January 1, 2018.
Directs the Revenue Laws Study Committee to study property tax benefits currently provided to nonprofit entities, and to report its findings to the 2018 Regular Session of the 2017 General Assembly upon its convening. Provides requirements for the study.
Enacts new GS Chapter 105, Article 61 (Local Government Tax Options).
Enacts three new statutes authorizing municipalities to levy taxes, but prohibits municipalities from levying a tax under more than one of the new statutes at any given time.
New GS 105-605 authorizes governing bodies of municipalities to levy, upon a successful advisory referendum and passage of a resolution to that effect, a prepared food and beverage tax of up to 1.5% of the sales price of prepared food and drink sold within the municipality at retail, in addition to State and local sales tax. Applies to caterers to the extent they serve food in the municipality, regardless of the residency of the caterer. Exempts seven categories of prepared food, including retail sales through vending machines. Provides for the administration of the referendum, including the form of the ballot question. Requires retailers to collect the tax, and provides requirements for collecting the tax. Authorizes municipalities to enter into an agreement with the county for the administration and collection of the tax levied under this statute. Provides that the tax is due to the local administering authority by the 20th day of each month, and that returns are not public records. Applies the uniform meals tax penalty provisions of GS 160A-214.1 to taxes levied under this statute. Provides for a refund of taxes under this statute to nonprofit or governmental entities by application to the Department of Revenue. Authorizes the use of up to 3% of the proceeds of the tax to pay for for administration and collection, and requires the remainder to be used to construct and improve public infrastructure and facilities, and/or for economic development. Supplements, but does not supplant, the authority of a municipality to levy a meals tax pursuant to a local act.
New GS 105-606 authorizes governing bodies of municipalities to levy, upon a successful referendum and passage of a resolution to that effect, an occupancy tax. If a local act authorizes the municipality or county that the municipality is located within to levy an occupancy tax, the combined rate of this tax and that of any local acts may not exceed 6%. Provides for the administration of the referendum, including the form of the ballot question. Requires proceeds of the tax to be used to construct and improve public infrastructure and facilities and/or for economic development. Supplements but does not supplant the authority of a county or city to levy an occupancy tax pursuant to a local act.
New GS 105-607 authorizes governing bodies of municipalities to levy, upon passage of a resolution to that effect, a sales tax of 1/4%, effective after 10 days' public notice. Authorizes the municipality to hold an advisory referendum on whether to levy the local sales and use tax under this statute. Provides for the administration of the referendum, including the form of the ballot question. Requires the municipality to use the net proceeds to construct and improve public infrastructure and facilities, and/or for economic development.
Effective October 1, 2017.