Bill Summary for H 998 (2013-2014)

Summary date: 

Jul 2 2013
S.L. 2013-316

Bill Information:

View NCGA Bill Details2013-2014 Session
House Bill 998 (Public) Filed Wednesday, April 17, 2013
A BILL TO BE ENTITLED AN ACT TO SIMPLIFY THE NORTH CAROLINA TAX STRUCTURE AND TO REDUCE INDIVIDUAL AND BUSINESS TAX RATES.
Intro. by Lewis, Setzer, Moffitt, Szoka.

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Bill summary

Senate amendment makes the following changes to the 5th edition.

Makes a technical correction to delete a codification error, recodifying the second occurrence of GS 105-129.101, Exempt business entities, as GS 105-129.102.

Rewrites Section 4.3(b) of this act to amend GS 105-129.27(b) to provide thatthestatute allows a credit, for investing in a major recycling facility, againstthe franchise tax levied in Article 3 of GS Chapter 105 (was,allowed a credit against the franchise taxand the income tax levied in Article 4 of GS Chapter 105). Previously, Section 4.3(b) repealed Article 3C and Article 3K of GS Chapter 105.

Rewrites Section 4.3(c) of this act to amend GS 105-129.96(b) to provide that this section allows a credit, for constructing a railroad intermodal facility, againstthe franchise tax levied in Article 3 of GS Chapter 105 (was,allowed a credit against the franchise tax andthe income tax levied in Article 4 of GS Chapter 105). Moves previous 4.3(c) to new (d) and makes conforming changes to other subsections.

Amends GS 105-275(8)d regarding classes of property designated as special classesunder Article V, Sec. 2(2), of the state Constitution to include the following classes of property as excludedfrom tax: real or personal propertyused or to be used by a major recycling facility as defined in GS 105-164.3 (was, GS 105-129.25).

Makes GS 105-164.3, as amended, and GS 105-275(8)d, as amended, effective January 1, 2018.

Amends GS 57D-1-22(a)(28), as enacted by SL 2013-157 (was, amended GS 57C-1-22(a)(25)), toprovide that there is no fee foran annual report delivered to the Secretary of State for filing.

Amends GS 105-467(a), which sets a sales tax rate under Article 39 of GS Chapter 105 at one percent (1%) for specified categories, to remove the sales price of bread, rolls, and buns sold at a bakery thrift store, and exempt from state tax under GS 105-164.13(27a)from the list of items subject to the first1% local government sales and use tax.

Amends GS 105-164.3(43) to amend the definition for state agency to clarify thatthe term does not include an affiliate of the University of North Carolina Health Care System that is a separately incorporated entity.

Makes a technical correction, replacing Section 7.3.(d) with Section 7.2.(d) and renumbering the remaining sections in Part VII accordingly.

Amends GS 105-467(b) as amended in this actto modify the maximum limits set on the aggregatelocal refund amount allowed to a nonprofit entity under GS 105-164.14(b) as follows:

  • Fiscal Year (FY) beginning July 1, 2014, $3 million (was, $1.5 million)
  • FY beginning July 1, 2015, $2 million (was, $300,000)
  • FY beginning on or after July 1, 2016, $1.5 million (was, $30,000)
  • FY beginning on or after July 1, 2017, $850,000 (new)

Makes a technical correction to GS 105-164.13, replacing "service" with "service contract."

Amends new subdivision (6) of GS 105-164.13 to provide thatthe exemption from the sales and use tax in Article 5 of GS Chapter 105 for a service contract on certain tangible personal property applies to a transmission, distribution, or other network cable or asset of an entity providing electric, gas, telecommunications, cable, broadband, or other utility services contained on utility-owned land or other right-of-way or easements authorized for utility and related purposes (was, a transmission,distribution, or othernetwork asset contained on utility-owned land, right-of-way, or easement).

Caps the excise tax on motor fuel at thirty-seven and one-half cents for the period from September 1, 2013, through June 30, 2015 (was, June 30, 2014).

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