TO MAKE TECHNICAL, CLARIFYING, AND ADMINISTRATIVE CHANGES TO THE REVENUE LAWS AND RELATED STATUTES.
Identical to H 122, filed 2/16/11.
Repeals GS 105-120.2(f) (regarding determining total tax payable by any holding company) and GS 105-130.4(t2) (regarding alternative apportionment method for certain corporations meeting investment requirements).
Definitions. Amends GS 105-129.50 to add the definition of development tier area one as defined in GS 143B-437.08. Makes technical change to GS 105-164.4C(h)(5), defining postpaid calling service to replace the term prepaid wireline telephone with prepaid telephone. Amends GS 105-164.14B(a) (regarding certain industrial facilities refunds) to add definitions for paper-from-pulp manufacturing and turbine manufacturing. Defines owner to include a lessee in a lease-to-purchase contract. Amends GS 105-228.90(b) to add a definition for NAICS: North American Industry Classification System (NAICS), adopted by the U.S. Office of Management and Budget. Makes conforming changes to GS 105-129.81(13) and (18). Amends GS 105-333(14) to clarify that the definition of public service company in the property tax statutes does not include mobile telecommunication service.
Retail sales and use tax. Amends GS 105-164.13(12) to clarify that the sales tax exemption applies to prosthetic devices for human use. Amends GS 105-164-13D(a) to remove geothermal heat pumps from the list of items entitled to the Energy Star sales tax exemption.
Economic Incentive Refunds. Rewrites GS 105-164.14A to set the sunset date for sales tax refunds for fuel sold to passenger air carriers and motorsports teams as January 1, 2013 (was, January 1, 2011). Amends GS 105-164.14B(b)(1) to identify facilities primarily engaged in paper-from-pulp manufacturing and turbine manufacturing as industrial facilities that meet the business, minimum investment, and industry specific requirements of the section and are therefore allowed an annual refund of sales and use tax paid on specified materials.
Refund of Overpayment of Tax. Amends GS 105-228.37 to clarify the refund process for a taxpayer who makes an overpayment under GS Chapter 105, Article 8E, Excise Tax on Conveyances. Eliminates the requirement that a board of county commissioners must conduct the refund request hearing in accordance with the procedures that apply to a hearing held by a board of equalization and review on an appeal regarding the listing or appraisal of property. Establishes the timeline for filing a refund request, setting a hearing date, and providing notice to the taxpayer. Provides process if the refund is granted and if the refund is denied. Provides that when the board of commissioners determines that no refund is due, the board must inform the taxpayer through its written decision of the taxpayer's right to request a Departmental review (was, judicial review) of the denial of the refund in accordance with GS 105-241.11. Amends GS 105-228.30(b) to require each county finance officer to credit one-half of the tax proceeds to the county's general fund and to remit the remaining one-half of the proceeds, minus the taxes refunded and the county's allowance for administrative expenses, to the Department of Revenue of a monthly basis.
Penalties. Amends GS 105-236(a)(2) to provide that the Secretary of Revenue (Secretary) may assess a penalty of $1,000 for failure to obtain a license prior to engaging in a business, trade, or profession in which a license is required only if the taxpayer fails to obtain a license after receiving written notification of the need to do so from the Department of Revenue.
Publications and Disclosure. Amends GS 105-256(a)(9) to delete the requirement that the Secretary redact identifying information for a taxpayer in a contested tax case from the final decision prior to publication of that decision. Reconciles GS 105-259(a)(9) with the publication provisions under GS 150B-31.1. Makes a conforming change to GS 105-259, replacing the term report with publication. Repeals GS 150B-21.17(a)(5) (required the publication of orders of the Tax Review Board in the North Carolina Register).
Sales Tax. Under current law, the sales tax imposed under the First One-Cent (1¢) Local Sales and Use Tax Act (GS Chapter 105, Article 39) limits application of the tax only to state taxable sales under GS 105-164.4 that are specifically included in subsection (a) of GS 105-467. Amends GS 105-467(a) to provide that the subsection applies to all taxable sales and gross receipts subject to the general rate of sales tax imposed by the state under GS 105-164.4.
Time Limit. Amends GS 105-241.9(b) to clarify that a waiver by a taxpayer of a statute of limitations for a proposed assessment must be executed before the statute of limitations expires.
Miscellaneous. Amends Section 24.18(g) of SL 2006-66 regarding various oyster tax shell credits to extend the sunset date on those provisions to January 1, 2013 (was, January 1, 2011).
Amends Section 31.7(e) of SL 2010-31 to change the effective date for GS 105-37.1(a)(1) as amended (provides for the exclusion of amenities from general admission receipts for determination of the privilege tax) to February 1, 2009 (was, August 1, 2010).
Amends Section 8 of SL 2006-209 to remove the sunset date (was, July 1, 2011) from the provision that authorizes the Codifier of Statutes to renumber the subdivisions in GS 20-79.4(b) (the special license plates statute) in sequential and alphabetical order and to eliminate mixed number-letter subdivision designations.
Provides that a facilitator (entities that enter into a contract with providers of accommodations to market and collect payment for accommodation rentals) is not liable for an over-collection or under-collection of sales tax or local occupancy tax during the period from January 1, 2011, through April 1, 2011, as the result of the change under Section 31.6 of SL 2010-31 regarding a facilitator's collection and remittance obligations under GS 105-164.4(a)(3), 153A-155(c), and 160A-215(c).
Amends GS 105-164.16(d) to clarify the items on which the use tax is payable.
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