Bill Summary for H 861 (2011-2012)

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Summary date: 

Apr 11 2011

Bill Information:

View NCGA Bill Details2011-2012 Session
House Bill 861 (Public) Filed Monday, April 11, 2011
Intro. by Michaux.

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Bill summary

Enacts three new Articles to GS Chapter 105 to provide for other local option taxes, including a meal tax, an occupancy tax, and excise tax on conveyances. Authorizes the board of commissioners (board) or the governing body of a tax unit to conduct a special election on the question of whether to levy each tax. Permits the county to decide whether to restrict the use of the tax proceeds and sets forth applicable ballot language. Clarifies that each new Article supplements but does not supplant the authority of a county or city to levy a meals tax, occupancy tax, or excise tax on conveyances by a local act.
Enacts new Article 61, Local Government Meals Tax, to Subchapter X of GS Chapter 105 to authorize a tax of up to 1% of the sales price of prepared food and drink sold within the county by a retailer subject to the sales tax. States that a meals tax becomes effective on the date designated in the resolution levying the tax, as detailed. Exempts from the meals tax food listed in GS 105-164.13B. Provides for collection, administration, distribution, and use of the tax. Requires a refund on meal taxes paid by a nonprofit or governmental entity entitled to a refund of local sales and use taxes. Sets forth penalties, and authorizes a meals tax levied under Article 61 to be repealed or reduced by a resolution adopted by the county’s board.
Enacts new Article 62, Local Government Occupancy Tax, to authorize a local government to levy an occupancy tax at a maximum rate of 6% for counties when added to the rate of any occupancy tax levied by a city within the county, and a maximum rate of 3% for cities, on the gross receipts from any room, lodging, or accommodation rent within the taxing unit that is subject to sales tax. Provides additional details on the maximum occupancy tax rate that a county or city is authorized to levy.
Enacts new Article 63, Local Government Excise Tax on Conveyances, to authorize a local excise tax on conveyances to be levied at a rate of up to 1% on instruments conveying interests in real property located in the county. Details the basis and effective date for the tax, and specifies that the tax is in addition to any tax levied under Article 8E of GS Chapter 105. Requires the board to deliver a certified copy of the resolution levying the tax to the register of deeds, who is charged with administering the tax. Provides that if property is located in two or more counties, a transfer of interest in the property is taxable only by the county in which the greater value of the property lies. Provides for collection, repeal, reduction, distribution, and use of the tax. Sets forth exemptions from the tax levied under Article 63.
Amends Section 5 of SL 1993-413 (Cumberland meals tax) and Section 1(e) of SL 1993-449 (Hillsborough prepared food and beverage tax) to provide that the taxes are due and payable in monthly installments on or before the 15th day (rather than the 25th day) of the month following the month in which the tax accrues. Requires each applicable retailer to, on or before the 15th day (rather than the 25th day) of each month, prepare and submit a return on the prescribed form. Makes clarifying changes.
Enacts new GS Chapter 159J, Local Government Impact Fees, to the General Statutes, authorizing counties and cities to impose certain impact fees. Permits a city to impose an impact fee on new community service facilities construction within the city’s corporate limits or extraterritorial planning jurisdiction. Prohibits a city from imposing an impact fee for schools. Permits a county to impose an impact fee on new community service facilities construction in the county that is not within the city’s corporate limits or extraterritorial planning jurisdiction. Permits a county to impose an impact fee for new school construction. Includes applicable definitions. Requires the local government to prepare a report containing three specified items before imposing an impact fee. Requires the amount of impact fee to be uniform and based upon the capital costs that will be incurred by the local government for the new construction. Allows the local government to establish zones, after a public hearing, to assess distinct impact fees according to community service facilities provided. Permits the local government to enact ordinances, after holding a public hearing, imposing the impact fees. Specifies that GS Chapter 159J supplements but does not supplant the authority of a local government to levy impact fees under a local act. Sets forth provisions detailing fee administration, providing credits against fees, and challenging an impact fee.