House committee substitute to the 2nd edition changes the effective date of the act from when it becomes law to September 1, 2023, applicable to actions filed on after that date. 

Amends GS 120-32.1 by requiring the Legislative Services Officer to display the national motto "In God We Trust" directly above and behind the dais of the Speaker of the House of Representatives and the President of the Senate. Requires the display to be consistent with the motto that is above and behind the dais of the Speaker of the US House of Representatives.

Requires the Legislative Services Officer to first use any funds gifted or otherwise provided to the State by a private individual or entity for this purpose. Provides that to the extent any of the funds are deemed unappropriated, the funds are appropriated for the purpose of this act. Provides that if no funds are gifted or otherwise provided by no later than 90 days from the effective date of this act, the Legislative Services Officer is allowed to use funds available to cover any costs incurred from implementing the display.

Effective July 1, 2023.

Establishes the Higher Education Savings Grant Pilot Program (Program) to be administered by the State Education Assistance Authority (Authority) to invest funds to be awarded for the benefit of qualifying students who enroll in eligible public or private postsecondary educational institutions. Defines qualifying student as one who enrolls in an eligible public or private postsecondary educational institution who: (1) qualifies as a legal resident of North Carolina and as a resident for tuition purposes under the criteria in GS 116-143.1 and in accordance with definitions of residency that may from time to time be adopted by the UNC Board of Governors; (2) is an eligible resident (defined as a child born in an eligible county between July 1, 2022, and June 30, 2023); and (3) has not previously benefitted from an award of funds pursuant to this act. 

Establishes the Higher Education Savings Trust Fund (Trust Fund) to be administered by the Authority to be used to provide grant awards to qualifying students. Allows 2.5% of the monies available in the Fund each fiscal year to be used for administrative costs related to operating the Fund and marketing for the Program. 

Amends GS 147-69.2 to allow the State Treasurer to invest funds deposited in the Higher Education Savings Trust Fund in any of the investments authorized under (b)(6c) (b)(8) or (b)(9a) of the statute notwithstanding the percentage limits imposed on the Retirement Systems' investments.

Requires the Department of Health and Human Services to transmit the following to the Authority by December 31, 2023, for live births that occurred in Duplin, Guilford, Madison, Union, and Wake counties, between July 1, 2022, and June 20, 2023: names of children born and their parents, the parents' addresses, and the total number of live births. Specifies that this information is not public record and must be kept confidential. Allows the Authority to use the information only to identify eligible residents, notify the person of eligibility, and determine the funds needed to be deposited into the Higher Education Savings Account. 

Requires students wanting to participate in the Program to contact the Authority within 30 days of enrolling at an eligible public or private post-secondary educational institution. Requires awarding $100 plus interest within 60 days of enrollment at an eligible institution for each qualifying student to defray costs of tuition, with funds to be provided directly to the institution. Provides that to the extent funds appropriated for this purpose are insufficient or in excess of what is needed to award each qualifying student $100, the Authority may reduce or increase the award amount in order to expend the appropriated funds on a prorated basis as fully and efficiently as possible.

Requires a report by November 1, 2024, and each year thereafter in which funds are deposited in or awarded from the fund, to the specified NCGA committee. Specifies items to be included in the report.

Appropriates $2.4 million for 2023-24 from the General Fund to the UNC Board of Governors to be allocated to the Authority for the Program. Requires the Authority to hold the funds until it determines the number of eligible residents who were born and at that time requires depositing funds sufficient to award $100 to each eligible resident into the Trust Fund. 

Effective July 1, 2023.

Part I

Amends GS 115C-218.5 (pertaining to final approval of applications for charter schools) to prohibit the State Board of Education (Board) from considering any alleged impact on the local school administrative unit(s) in the area served by the charter school when deciding whether to grant, renew, amend, or terminate a charter. 

Amends GS 115C-218.6(b)(2), pertaining to when a charter school’s diminished academic outcomes would bar the Board from renewing a charter school’s charter because those outcomes have not been comparable to the academic outcomes of the students in the local school administrative unit, as follows. Specifies that, if a school's charter results in it providing services to certain targeted subgroups, the school's academic performance will be judged in comparison to the academic outcomes of students in the same subgroups in the local school administrative unit where the school is located.

Part II

Amends GS 115C-218.7 (pertaining to material revisions of charters) as to limit enrollment caps to low-performing schools as follows. Deletes the entirety of the text in subsection GS115C-218.7(b)-(d) (barring enrollment growth of greater than 20% for a low-performing charter school and setting forth circumstances when enrollment growth will be allowed for high-performing charter schools, including formulae for determining actual enrollment and maximum allowed enrollment, documentation requirements, and requests for increased maximum enrollment requests due to capital expansions) and replaces it with the following subsection(b). Specifies that if a charter school has been identified as low-performing under state law, then it will be  considered a material revision of the school's charter to increase its maximum authorized enrollment by more than 20% of the previous year's maximum authorized enrollment. Incorporates new definition of maximum authorized enrollment from GS 115C-218.8 (pertaining to nonmaterial revisions of charters) as the target enrollment defined in a school’s charter. Makes conforming deletions.

Amends two of the circumstances under GS 115C-218.8 that describe nonmaterial changes to a charter school’s charter as follows. Amends GS 115C-218.8(1) to specify that it is not a material revision of a charter school’s charter to increase its maximum authorized enrollment during its second year of operation and annually thereafter so long as the charter school is not identified as low performing under GS 115C-105.37A (pertaining to continually low performing schools). Specifies that a charter school may only update its maximum authorized enrollment once per year and cannot decrease based on actual enrollment. Sets forth new definition of maximum authorized enrollment as discussed above. (Currently, that nonmaterial change is only if charter school increases its enrollment in accordance with the standards in procedures set forth in current version of GS 115C-218.7, which will be deleted by the act as specified above). Amends GS 115C-218.8(2) to specify that that if a school is designated as low performing under GS 105.37A and has a planned growth authorized in its charter, it is a nonmaterial change to the school’s charter if it increases its maximum authorized enrollment during the school’s second year of operation and annually thereafter in line with that planned growth. (Currently, there is no reference to low performing schools with a planned growth authorized in its charter or reference to maximum authorized growth in GS 115C-218.8(2)).

Part III

Enacts new GS 115C-218.87, establishing micro school programs in charter schools. Defines micro school as a group of students enrolled in a  charter school that have been assigned to attend the school in accordance with this statute. Specifies that no more than 50% of the charter school’s total enrollment may be assigned to micro schools.  Permits charter schools to apply for a micro school program either in its initial charter application or by a submitting a revision to the school’s charter including the following information: (1) The number and grade level of students that will comprise a micro school, which may combine students of varying grade levels. (2) The method of instruction for the micro school which may be conducted in any one or combination of the following methods: (i) on the charter school campus. (ii) at a location other than the charter school campus; or (iii) through virtual instruction. (3) Any specialized curriculum or program to be provided to a micro school. (4) The process by which students may be assigned to or withdrawn from a micro school. Specifies that at a minimum, the process will include the following: (i) how a parent may request a student be assigned to a micro school; (ii) the criteria the school will use to determine whether the parent's request for assignment will be granted or denied; (iii) how the school will make a recommendation to a parent that the student be assigned to a micro school; (iv) how a parent may consent to or reject the school's recommendation that the student be assigned. Specifies that no student will be assigned to a micro school without parental consent. Specifies that students and teachers assigned to micro schools must comply with the charter school’s charter, except those in conflict with GS 115C-218.87. Makes conforming changes to GS 115C-84.3 (remote instruction) and GS 115C-218.1 (charter school applications). Requires the Board to adopt rules to delegate to the Office of Charter Schools (OCS) the authority to approve a revision of an existing school’s charter that establishes a micro school program.

Part IV

Amends GS 115C-218.45(f) (pertaining to enrollment priority for charter schools) by enacting two new subdivisions that add admissions preferences for graduates of certain pre-k programs and for military families as follows. Specifies charter schools may give enrollment preferences to any student who was enrolled for at least 75 consecutive days in the prior semester in a preschool program operated by an entity other than the charter school so long as the charter school has a written enrollment articulation agreement with the program operator to give the program’s students enrollment priority and such enrollments are limited to no more than 10% of the school’s total enrollment. Specifies that charter schools may give enrollment preference to a student whose parent or legal guardian is on active military duty. 

Part V

Enacts new subsection GS 115C-218.45(b1) which prohibits a local board of education from discriminating against students applying for admission to any school or special program operated by the local board of education based on the fact that a student is currently attending, or has attended, a charter school.

Part VI

Enacts new GS 153A-461 which authorizes counties to provide funds to charter schools by direct appropriation for certain specified purposes and to lease real property to those schools. Amends GS 115C-218.105 to enact subsections (b1) and (b2) as follows. Subsection (b1) sets forth the following sole purposes for which counties may provide funds discussed above to charter schools: (1) the acquisition of real property for school purposes, including, but not limited to, school sites, playgrounds, and athletic fields; (2) the acquisition, construction, reconstruction, enlargement, renovation, or replacement of buildings and other structures, including, but not limited to, buildings for classrooms and laboratories, physical and vocational educational purposes, libraries, auditoriums, and gymnasiums; (3) the acquisition or replacement of furniture and furnishings, instructional apparatus, technology, data processing equipment, business machines, and  similar items of furnishings and equipment. Subsection (b2) specifies promissory note and deed of trust requirements for when charter schools use funds for real property, including authority granted to the county to subordinate the deed to other liens. Provides for deed of release upon repayment by charter school.   

Amends GS 115C-218.100(b) (pertaining to distribution of assets upon dissolution of a charter school) as follows. Exempts capital-sourced assets from those net assets of a charter school that is deemed to be the property of a local school administrative unit in the district where the school is located upon dissolution of the charter school. Specifies that capital-source assets include (1) capital funds provided to a charter school by one or more counties under new subsection GS115C-218.105(b1), discussed above and (2) net assets purchased or improved with such funds, up to the total amount of the funds provided. Specifies that capital-sourced assets are deemed the property of the county or counties providing the funding and, if applicable, divided between the counties in proportion to the funds provided.

Makes conforming changes to GS 153A-149 (county property taxes) to allow property taxes to be used for capital funds to charter schools. 

Part VII

Enacts new GS 115C-218.107 pertaining to charter school funding comparability, setting forth the General Assembly’s intent that State and local funds for students attending charter schools is to be provided in a manner that results in per-pupil funding roughly equal to that provided to students attending other public school units. Amends GS 115C-218.105 (pertaining to state and local funds for a charter school) as follows. Changes the formula for the base amount that the Board must allocate to each charter school for students who are not disabled or who do not have limited English proficiency to be an amount equal to the average per pupil allocation for average daily membership from the local school administrative unit allotments in which the charter school is located based on the number of students actually enrolled in the school, up to the maximum authorized enrollment. (Currently, that formula is based on each child attending the charter school.) Specifies that the Board will allow for annual adjustments to the amount allocated to a charter school based on the number of students actually enrolled in the school, up to the maximum authorized enrollment. (Currently, the Board must allow for annual adjustments based on enrollment growth in school years following the school’s initial year of operation). Deletes provisions stipulating that if a local school unit is required to transfer funds to a charter school for a child attending that school, then any source of that funds that consists of revenue derived from supplemental taxes can only be transferred to a charter school located in the tax district for which those taxes are levied and where the student resides. Amends GS 115C-218.426(c) (pertaining to the uniform budget format) to narrow the scope of permitted uses for other funds to account for trust funds, federal grants restricted as to use, and special programs. (Currently, those funds may be used for reimbursements, including indirect costs, fees for actual costs, tuition, sales tax revenues distributed using the ad valorem method pursuant to state law (GS 105-472(b)(2)), sales tax refunds, gifts and grants restricted as to use, trust funds, federal appropriations made directly to local school administrative units, municipal appropriations made directly to local school administrative units under GS 160A-700 and funds received for prekindergarten programs.) Deletes language specifying that the appropriation or use of fund balance or interest income by a local school administrative unit is not construed as a local current expense appropriation included as a part of the local current expense fund.

Applies beginning with the 2023-2024 school year. 

Amends GS 126-14.3, which requires the State Human Resources Commission (Commission) to adopt specified rules or policies, as follows. Amends the requirement for a rule/policy to require that a closing date must be posted for each job opening, to allow for exceptions for when there is a special exception through the Office of State Human Resources (Office). Requires the adoption of a rule/policy to allow an individual the option of having their application considered for future job postings if the individual has been identified as a qualified applicant within the same or a comparable classification.

Amends GS 126-4, which sets out exceptions to the confidentiality of information in a personnel file, to allow them to be opened for inspection and examination by a potential state or local government supervisor during the interview process to prevent application fraud. Makes additional technical changes.

Amends GS 126-10, to allow the Office, when a local entity indicates that it will permanently appoint a person who does not meet the class specification's minimum qualifications for a position subject to the State Human Resources Act (except for trainee and work-against appointments), to contact any relevant members of the board supervising that entity, the county manager and commission, and the Department of Health and Human Services (DHHS). Allows the message to identify the particular qualifications the proposed appointee would need to meet to have the minimum qualifications of the class specification. Also allows the Office, when a local entity requests that the Office make the final determination as to whether the employee or applicant meets the minimum qualifications, to share the relevant portions of the personnel file with the Deputy Director of the Public Health or Social Services Division of DHHS  to assist in determining qualification status.

Amends GS 95-476 to prohibit a private personnel service from imposing or attempting to collect any fee prohibited under GS 126-18 (barring compensation for assisting a person in obtaining State employment) from the State, or any of its agencies, for aiding or assisting any person in obtaining employment with the State.

Amends GS 126-18 to allow a person, firm, or corporation that is licensed (was, licensed and supervised) by the Department of Labor as a private personnel service under Article 5A of GS Chapter 95 (was, as a private employment service acting in the normal course of business) to collect fees for services related to assistance in obtaining employment with the State, for services rendered under a written contract when the fees are paid by someone other than the State. Makes conforming changes. Instead of the required monthly report, now requires any person, firm, or corporation collecting fees for this service to retain documents as required under the specified law. 

Identical to S 159, filed 2/23/23.

Includes whereas clauses.

Enacts GS 145-52, as title indicates.

Identical to S 174, filed 2/28/23.

Part I.

Amends GS 105-228.90 to update the term Code as it applies to the general administration of taxation to mean the Internal Revenue Code as enacted as of January 1, 2023 (currently, April 1, 2021).

Amends GS 105-122, which sets parameters for determining the net worth of a corporation for tax purposes, revising the statutory cross-references used to define the term qualified interest expense in the context of indebtedness owed to a parent, subsidiary, affiliate, or noncorporate entity in which the corporation or group owns more than 50% capital interest, which cannot be added to the corporation’s net worth amount.

Amends GS 105-153.4 to enact a formula for determining North Carolina taxable income for a sole proprietorship operating in one or more other states, as specified.

Amends GS 105-153.9, which allows a tax credit for income taxes paid to other states by individuals, enacting a new subsection to cap the credit at the amount of tax imposed by the Individual Income Tax Act, Part 2, Article 4, for the taxable year reduced by the sum of all credits allowed, less tax payments made by or on behalf of the taxpayer.

Makes the following effective for taxable years beginning on or after January 1, 2022.

Amends GS 105-154(d), which requires taxation of nonresident business owners and partners, deeming partners described in GS 105-154.1(a)(5), as enacted, of a taxed partnership within the scope of the subsection’s provisions (previously excluded all taxed partnerships).

Amends GS 105-154.1(a), which allows taxed partnership election, enacting new subdivision (5) to include within the described types of partners of partnerships permitted to make the election, partnerships that have had a partner that is a partnership at any time during the taxable year. Adds that a partnership partner includes an entity that is classified as a partnership for federal income tax purposes.

Amends GS 105-154.1(b), limiting the application of the formula for taxable income of taxes partnerships to partners who are individuals, estates, trusts, or identified organizations described in subdivision (a)(1) through (a)(4), excluding partnership partners described in new subdivision (a)(5).

Further amends GS 105-153.9, enacting new subsections (d) and (e) to establish when each resident partner or shareholder of a taxed partnership or S Corporation is considered to have paid the tax imposed on that partner or shareholder in the amount of their distributive share or pro rata share of any income tax paid by the partnership or S Corporation to a state or D.C. Details when a partnership or S Corporation is taxable in another state or D.C. Prohibits taxpayers from claiming this credit and the credit under GS 105-131.8 with respect to the same income tax paid by the S Corporation.

Makes the following effective for taxable years beginning on or after January 1, 2023.

Repeals the following:  

GS 105-131.1A(b)(1)b. (requiring an S Corporation to include in its taxable income each resident shareholder's pro rata share of the taxed S Corporation's income or loss not attributable to the State with respect to such taxable period);

GS 105-131.1A(d) (allowing S Corporations a tax credit for income taxes paid to other states);   

GS 105-153.9(a)(4) (regarding tax credits for S Corporations and their shareholders for income taxes paid to another state or country);

GS 105-153.9(a)(5) (regarding tax credits for taxable partnerships and their partners for income taxes paid to another state or country); and   

GS 105-154.1(b)(1)b. (requiring taxable partnerships to include in its taxable income each resident partner's distributive share of the taxed partnership's income or loss not attributable to the State with respect to such taxable period.

Amends GS 105-131.1A(a), which permits an S Corporation to elect to be taxed for the taxable period covered by its timely filed return, required annually under GS 105-131.7, prohibiting making the election or revoking the election after the return is filed (previously prohibited revoking the election after the due date of the return, including extensions).

Amends GS 105-153.3(c3), revising the adjustments for calculating taxable income of pass-through entities as follows. Separates deductions income of S Corporation shareholders and partnerships, based on income attributable to the State and income not attributable to the State. Makes income and losses attributable to the State subject to the adjustments under GS 105-153.5 and GS 105-153.6. Refers to the required addition of a shareholder or partner’s share of net taxable loss attributed to the State (was, loss, generally). Adds qualifications for a deduction of income not attributable to the State.

Further amends GS 105-153.9, prohibiting a credit for taxes paid to another state or D.C. on income eligible for the deduction provided in GS 105-153.3(c3), as amended. Makes conforming changes to eliminate references to repealed provisions. 

Further amends GS 105-154.1(a), which provides for taxes partnership election for the taxable period covered by it timely filed return, required annually under GS 105-154(c), prohibiting making the election or revoking the election after the return is filed (previously prohibited revoking the election after the due date of the return, including extensions).

Amends GS 105-249.2(b) to prohibit the assessment of the $50 fee for failure to file returns or reports required by Articles 2A, 2C, 4, 4A, 5, 9, 36C, or 36D of the Chapter for any period in which the time for filing a federal return or report or for paying a federal tax is extended due to a presidentially declared disaster. Applies to presidentially declared disasters occurring on or after the date the act becomes law.

Part II.

Removes the existing definition of “prepared food” in GS 105-164.3(179), and substitutes a reference to the new GS 105-164.4L (Prepared food). The "prepared food” definition in GS 105-164.4L reorganizes and expands on the previous definition, including detailing when the term prepared food includes food sold with eating utensils provided by the retailer based on what type of person places utensils in a package with the food. Uses prepared food sales percentage to determine what sold with eating utensils “provided by the retailer” means when determining if an item qualifies as “prepared food” under subdivision (a)(3). Specifies that a retailer’s prepared food sales percentage is calculated by dividing the numerator of the retailer’s annual sales of prepared food as defined by the section by the total sales of all food, including prepared food, but excluding alcohol. The definition of “provided by the retailer” for retailers with a prepared food sales percentage over 75% includes making eating utensils available to purchasers, but an item with four or more servings packaged together and sold for a single price is not prepared food unless the retailer physically gives or hands utensils to the purchaser of the food item. For retailers with 75% or less of prepared food sales percentage, “provided by the retailer” means that the retailer physically gives or hands eating utensils to the purchasers, except that plates, bowls, glasses, and cups only need to be made available to purchasers.

Adds new subsection (k) (Efficient Administration) to GS 105-164.4J (Marketplace-facilitated sales), permitting the Secretary of the Department of Revenue (Secretary) to classify sales representatives, solicitors, and similar persons as agents of the dealers, distributors, or similar entities under which they operate or from whom they obtained the items they sell, regardless of whether the sales are made on the sales representatives’ or other persons’ own behalf or on the behalf of the dealers or other entities. Permits the Secretary to regard the dealers, distributors or similar entities as “marketplace facilitators,” the sales made as “marketplace-facilitated sales,” and the sellers as “marketplace sellers” for purposes of Article 5, GS Chapter 105.

Creates new subsection (b) (Marketplace Facilitators) in GS 105-164.11B (Recover sales tax paid), permitting marketplace facilitators to recover sales tax paid to marketplace sellers when the marketplace facilitator is considered the retailer under GS 105-164.4J(b) and the tax is separately stated on an invoice or similar billing document given to the marketplace facilitator at the time of the sale. Outlines requirements and limitations on the amount of sales tax recovered and adjustments to taxable receipts.

Adds a reference to the refund of tax allowed under GS 105-449.106 subsection (d) (Off-highway Use) to the list of alternative fuels exempt from tax under GS 105-164.13(11)b., and makes this change retroactive to January 1, 2023, and applicable to applications for refunds submitted on or after that date.

Requires that exempt sales by nonprofits under GS 105-164.13(35) must occur at least 60 days after the beginning of the prior annual sales period, that each annual sales period funds a distinct and different project from the other annual sales periods occurring during the year, and that each annual sales period sells products that are distinct and different from the other products sold during other annual sales periods occurring during the year, in addition to the already required conditions.

Revises the date reference in GS 105-164.3(259) regarding the Streamlined Sales and Use Tax Agreement to December 22, 2022, from December 21, 2021.

Part III.

Clarifies that the definition of “vapor product” in GS 105-113.4(13a) includes products that produce vapor from nicotine, however derived, in a solution. Amends the definition of “cost price” in GS 105-113.4(2) to include the actual price paid for an item identified as a stock keeping unit by a unique code or identifier, and remove the previous language regarding the method of determining the average of the actual price paid for the item over the past 12 calendar months if the actual price is not available. Includes a method for determining the value when documentation is not available using the average of the actual price paid over the past 12 calendar months in new subdivision (b)(2) of GS 105-113.36A.

Removes the requirement that a duplicate license state that it is a duplicated or amended license in GS 105-113.4A(e).

Amends GS 105-113.4F subsection (c) (Filing Requirement) to insert “for which tax is due under this Article” to the requirement that a delivery seller file a copy of the invoice for every delivery sale made during the previous month, effective when the act becomes law and applicable to sales made during the previous month.

Amends GS 105-113.4G to organize the section into subsections (a) and (b). New subsection (a) includes an amendment changing the requirement to make reports as required under the article to as required by the Secretary of Revenue. New subsection (b) makes the applicable statute of limitations for preserving the required records as provided in Article 9 of GS Chapter 105, and for records applying to transactions not required to be reported, three years.

Changes the language in GS 105-113.12 subdivision (a)(2) and GS 105-113.39A subdivision (a)(3) from “ships” to “receives or stores non-tax-paid cigarettes (or tobacco products, as relevant)for” regarding delivery sales of cigarettes and tobacco products. Requires a remote seller required to be licensed to maintain the records required under GS 105-113.38B. Creates two new license types, a vapor products license and an other tobacco products license, for wholesale dealers and retailers selling vapor products and other tobacco products at locations where they make, receive, store, and receive or store the products for delivery sales. The new license types are effective July 1, 2024.

Amends GS 105-113.88 (Record-keeping requirements) to change that persons make reports or returns as required under the article to as required by the Secretary of Revenue, including any additional information required. Makes the applicable statute of limitations for preserving the required records as provided in Article 9 of GS Chapter 105, and for records applying to transactions not required to be reported in a return, three years. Permits the Secretary’s designee to inspect records at any reasonable time, and this authority is ongoing and not limited to records for transactions on or after the effective date of the act.

Changes the reference from “time period covered by the return” to “reporting period” in GS 105-449.39, and reorganizes that section into subsections (a) and (b).

Amends GS 105-449.42 to specify that if motor carriers are exempt from filing a tax return under GS 105-449.45(b)(2), the tax levied is due when collectable under GS 105-241.22.

Changes the due date of motor carrier quarterly returns from the last day of April, July, October, or January to the last day of the month following the quarter in GS 105-449.45. Amends subdivision (b)(2) to clarify that exemptions only apply to a motor carrier who operates exclusively in North Carolina.

Amends the title of GS 105-449.46 to “Record-keeping requirements; inspection authority,” and inserts new subsection (a) regarding record keeping requirements for interstate motor carriers, while maintaining existing language authorizing inspections in new subsection (b). Specifies that the Secretary’s authority to authorize inspections is ongoing and not limited to records for transactions occurring on or after the effective date of the act.

Creates a grace period for motor carriers to display the new calendar year decals required by the section if they meet the applicable requirements in new subsection (a3) under GS 105-449.47, and makes clarifying changes to existing text reorganized as subsection (a2).

Amends GS 105-449.61 to also prohibit a county or city from imposing a tax on the sale, distribution, or use of motor fuel, except for those for which a refund of the per gallon excise tax is allowed under GS 105-449.106(d).

Amends GS 105-449.97, concerning deductions and discounts that are allowed when a supplier (a position holder or a person who receives motor fuel pursuant to a two-party exchange, a fuel alcohol provider, or a biodiesel provider) files a return, by adding that when filing a return, a licensed supplier who is the position holder may take a credit for tax-paid motor fuel entering the terminal system. Makes organizational changes to the statute.

Amends GS 105-449.106(a), under which a nonprofit, in one of the specified categories, that purchases and uses motor fuel may receive a quarterly refund at the specified rate. Removes the requirement that the refund application be made in accordance with the specified Part and signed by the organization’s chief executive officer.

Amends GS 105-449.121 which requires a person subject to audit to keep a record of all shipping documents or other documents used to determine information the person provides in a return or to determine the person’s motor fuel transactions. Requires the records to be kept for the applicable period of statute of limitations, and if the records apply to a transaction not required to be reported in a return, the records must be kept for three years from the date of transaction. Gives the Secretary or their designee the right to inspect the records at any reasonable time. Apples to documents required to be kept for transactions occurring on or after the date that this section becomes law. Specifies that the authority of the Secretary or their designee to inspect records at any reasonable time is ongoing and not limited to records for transactions occurring on or after the section’s effective date.

Amends GS 105-449.139 to require licensees as a provider of alternative fuel, a bulk end-user or as a retailer under Article 36D (Alternative Fuel) to keep a record of any information required by the Secretary, in addition to documents used to determine the information provided in a return under Article 36D. Requires the records to be kept for the applicable period of statute of limitations, and if the records apply to a transaction not required to be reported in a return, the records must be kept for three years from the date of transaction. Gives the Secretary or their designee the right to inspect the records at any reasonable time (was, during business hours). Apples to documents required to be kept for transactions occurring on or after the date that this section becomes law. Specifies that the authority of the Secretary or their designee to inspect records at any reasonable time is ongoing and not limited to records for transactions occurring on or after the section’s effective date.

Amends GS 119-18, concerning the inspection tax of one-fourth of one cent per gallon that is levied on the listed types of fuel. Adds that the tax return must be in the form prescribed by, and contain information required by, the Secretary. Adds record keeping requirements for the person required to remit the tax and gives the Secretary or their designee the right at any reasonable time to inspect the records. Effective when the act becomes law and applies to documents required to be kept for transactions occurring on or after that date. Specifies that the authority of the Secretary or their designee to inspect records at any reasonable time is ongoing and not limited to records for transactions occurring on or after the effective date of this section.

Part IV.

Repeals GS 105-277.9, which designated real property that lies within a transportation corridor marked on an official map as a special class of property taxable at 20% of the appraised value of the property if (1) as of January 1, no building or other structure is located on the property, and (2) the property has not been subdivided, since it was included in the corridor.

Part V.

Amends GS 105-236 to provide that when the bank upon which an uncertified check tendered to the Department of Revenue (Department) in payment of any obligation due to the Department returns the check because of insufficient funds or the nonexistence of the account of the drawer, the Secretary must assess the drawer of the check, the specified penalties (was, assess a penalty without specifying whom it was to be assessed against). Defines the drawer, in the case of a garnishment payment, as the garnishee. Provides that the stated penalties are to be assess against the transferor (was, penalty was assessed without specifying whom it was assessed against), when an electronic funds transfer cannot be completed due to insufficient funds or the nonexistence of an account of the transferor. Provides that in the case of a garnishment payment, transferor means the garnishee.

Amends GS 105-242.1(b), which requires a garnishee to comply with a notice of garnishment or file a written response to the notice, after which the Department must hold a conference to discuss the garnishee’s response or inform the garnishee of the Department’s position on the response. Provides that when the Department does not agree with the garnishee on the garnishee’s liability, the Department may proceed to enforce the garnishee’s liability for the tax by sending a notice of proposed assessment including any penalties that are to be imposed (previously did not include penalties). Adds that if the garnishee does not file a response to the notice within the set time frame and fails to comply with the notice, the garnishee is subject to penalties imposed under Article 9 (General Administration; Penalties and Remedies). Amends GS 105-241.11(a) which allows a taxpayer who objects to a proposed denial of a refund or a proposed assessment of a tax to request a Departmental review, to now allow the request for review to be, instead of on the required form, in a written statement clearly indicating the taxpayer requests review of a proposed denial of a refund or a proposed assessment of tax.

Enacts new GS 105-241.24 allowing the Department to collect a tax for a period of 10 years from the date it becomes collectible. Allows tolling the 10 year period for the same reasons the enforcement period for a certificate of tax liability may be tolled under GS 105-242(c) (which allows tolling for the specified amounts of time for instances in which the taxpayer is absent from the State, upon the death of the taxpayer, while an action is pending to set aside a conveyance made by the taxpayer as a fraudulent conveyance, while an insolvency proceeding against the taxpayer is pending, during the period of any statutory or judicial bar to the enforcement of the certificate, and the period for which a taxpayer has waived the 10-year period). Specifies that if the tax is not collected within the authorized time frame, then the remaining liability is abated. Amends GS 105-242(c) by making conforming and clarifying changes.

Amends GS 14-318.6, which makes it a Class 1 misdemeanor for any person 18 years of age or older who knows or should have reasonably known that a juvenile has been or is the victim of a violent offense, sexual offense, or misdemeanor child abuse to fail to report the case of that juvenile to the appropriate local law enforcement agency. Adds that the statute does not require a person with psychiatrist-client or patient privilege to report if the privilege would prevent them from doing so. Also adds that the statute does not require a licensed marriage and family therapist with a privilege to report if that privilege would prevent them from doing so, but limits the application of the privilege to the primary client (as defined) and not to any other family members.