Bill Summary for H 122 (2011-2012)

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Summary date: 

Jun 9 2011

Bill Information:

View NCGA Bill Details2011-2012 Session
House Bill 122 (Public) Filed Wednesday, February 16, 2011
Intro. by Howard, Luebke, Gibson.

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Bill summary

House committee substitute makes the following changes to 1st edition.
Deletes Section 8 of the 1st edition.
Section 1 (was Section 16 in the 1st edition) amends GS 105-37.1(a)(1) in SL 2010-31, excluding amenities from general admissions receipts, to apply the exclusion retroactively.
Section 2a (new section) amends GS 105-113.4, governing the cigarette excise tax payment statute, to separately define affiliate as a person who directly or indirectly controls, is controlled by, or is under common control with another person (this definition previously included within the definition of integrated wholesale dealer); and to define affiliated manufacturer as a manufacturer licensed under GS 105-113.12 who is an affiliate of a manufacturer licensed under the same statute.
Section 2b (new section) amends GS 105-113.10, governing tax on tobacco products, to exempt a manufacturer from payment of cigarette tax on cigarettes that are manufactured by an affiliated manufacturer and temporarily stored at and shipped from its facilities.
Section 2c (new section) requires a distributor seeking a refund of cigarette taxes paid on cigarettes that have become stale or otherwise unsalable to return the cigarettes to the manufacturer or affiliated manufacturer to validate quantities and disposal of the cigarettes.
Section 3 is identical to Section 1 of the 1st edition.
Section 4 is identical to Section 2 of the 1st edition.
Section 5 (was Section 3 of the 1st edition) repeals both GS 105-130.4(t2) and GS 105-122(c1(3) (both provisions are obsolete).
Section 6 (new section) amends GS 105-41(a)(8) and (a)(9) to make conforming change to the real estate licensing law to repeal obsolete reference to real estate salesman (all licensees now referred to as real estate broker).
Section 7 (new section) amends GS 105-113.82(a) to delete obsolete definition of net amount that references a repealed statute.
Section 8 (new section) amends GS 105-125(b) to redefine the base for calculating franchise tax base from the basis to capital stock, surplus, and undivided profits base.
Section 9 (new section) amends GS 105-127(f) to specify statutory reference to Part 1 of Article 14 of GS Chapter 55.
Section 10 (new section) amends GS 105-228.8(e) deleting reference to obsolete taxes collected on contracts of insurance applicable to fire and lightning coverage.
Section 11 (new section) amends Section 4 of SL 2011-5 to clarify that changes in that act apply to estates of decedents dying on or after January 1, 2011.
Section 12 (new section) makes changes to provisions in Section 31A.1 of House Bill 200, amending personal taxes that become effective if H200 becomes law, including reenacting GS 105-134.1(19) that is repealed in Section 31A.1.(d) of H200.
Section 13 (new section) amends GS 105-134.6(d)(8) to delete references to net operating losses absorbed on the taxpayer’s federal returns for tax years 2003, 2004, 2005, and 2006.
Section 14 (new section) is reserved.
Section 15 (new section) amends GS 105-164.3 and GS 105-164.14A governing sales tax refunds available to motor sports teams for aviation fuel and tangible personal property that is part of a racing vehicle, and applies changes retroactively.
Section 16 (new section) amends GS 105-164.4(a)(3) to clarify exemption from sales tax for accommodations at schools or camps where the attendee pays to enroll at the school or camp.
Section 17 (new section) identical to Section 4 in 1st edition
Section 18 (was Section 5 of the 1st edition) amends various subsections of GS 105-164.13 to make technical changes to the names of state agencies and public assistance programs listed in the statute; clarifies that prosthetic devises exempt from sales tax are ones for human use; and that exempt installation changes must be separately stated on the invoice at the time of sale.
Section 19 is identical to Section 6 of the 1st edition.
Section 20 modifies Section 7 of the 1st edition to clarify that the changes to GS 105-164.14A apply retroactively to purchases made on or after January 1, 2011.
Section 21 is identical to Section 19 of the 1st edition.
Section 22 modifies Section 9 of 1st edition to clarify that taxpayer liability is calculated at applicable state and local tax rates.
Section 23 is identical to Section 18 of the 1st edition.
Section 24 (new section) clarifies the effective date of SL 2010-91 to make certain changes in that act effective retroactively to sales made on or after October 1, 2007.
Section 25 (new section) makes technical clarifying changes to GS 105-164.6(c) and 105-187.52.
Section 26 (new section) clarifies that taxes for which a refund is allowed are not considered to be an overpayment of tax and does not accrue interest.
Section 27 (new section) amends GS 105-164.15A(a)(1) to clarify that the effective date of a tax change for taxable services that are billed on a monthly basis applies to the first billing period that starts on or after the effective date of the change.
Section 28 (new section) amends GS 105-164.28 to make technical change of the term certificate of resale to the term certificate of exemption.
Section 29 (new section) repeals obsolete GS 105-164.41.
Section 30 is identical to Section 10 of the 1st edition.
Section 31 is identical to Section 11 of the 1st edition.
Section 32 is identical to Section 12 of the 1st edition.
Section 33 is identical to Section 13 of the 1st edition.
Section 34 is identical to Section 21 of the 1st edition.
Section 35 (new section) repeals GS 105-256(a)(7).
Section 36 is identical to Section 16 of the 1st edition.
Section 37 (new section) amends GS 105-228.90(a) to ensure that the definition of person for purposes of the Debt Setoff Collection Act of GS Chapter 105A and for tax purposes under GS Chapter 105 are the same.
Sections 38 and 39 (new sections) are reserved.
Section 40 (new section) amends GS 105-330.4 by adding a new subsection (d) to clarify that property tax payments on registered motor vehicles are deemed to be received as of the postmark date or, if there is no postmark, when the payment is received in the office of the tax collector.
Section 41 is identical to Section 20 of the 1st edition.
Section 42 (new section) clarifies the effective dates of changes in collection of motor vehicle property tax enacted in previous sessions.
Sections 43 and 44 (new sections) are reserved.
Section 45 is identical to Section 14 of the 1st edition.
Section 46 is identical to Section 17 of the 1st edition.
Section 47 (new section) amends GS 58-70-35(a) and GS 143-143.10(a) to require fees paid under those statutes be credited to the Insurance Regulatory Fund established under GS 58-6-25.
Sections 48 and 49 (new sections) are reserved.
Section 50 (new section) makes the act effective when it becomes law unless otherwise specified.