GENERAL ASSEMBLY OF NORTH CAROLINA

SESSION 1989

H	3 

HOUSE BILL 2070*
Committee Substitute Favorable 7/19/90
Finance Senate Committee Substitute Adopted 7/28/90

Short Title:  Technical and Other Changes.	(Public)
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Sponsors:
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Referred to:  
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May 24, 1990

A BILL TO BE ENTITLED
AN ACT TO MAKE TECHNICAL CHANGES IN THE REVENUE LAWS AND TO MAKE OTHER CHANGES IN THE LAW.
The General Assembly of North Carolina enacts:
Section 1.  G.S. 105-151.20, as enacted by Section 6 of Chapter 984 of the 1989 Session Laws, reads as rewritten:
"§ 105-151.20.  Credit for tax paid on certain government retirement benefits.
A taxpayer who received government retirement benefits during the 1988 tax year may claim a credit against the tax imposed by this Division equal to the amount by which the tax under this Division paid by the taxpayer for the 1988 tax year would have been reduced if none of the taxpayer's government retirement benefits had been included in the taxpayer's taxable income.  If a taxpayer received a refund of any tax paid under this Division on government retirement benefits for the 1988 tax year, the amount of the refund reduces the amount of the credit allowed under this section.
As used in this section, the term ‘government retirement benefits' means retirement benefits received from one or more state, local, or federal government retirement plans.  As used in this section, the term ‘1988 tax year' means the taxpayer's taxable year beginning on a day in 1988.
The credit allowed under this section shall be taken in equal installments over the taxpayer's first three taxable years beginning on or after January 1, 1990.  The credit allowed under this section may not exceed the amount of tax imposed by this Division reduced by the sum of all credits allowed against the tax, except payments of tax made by or on behalf of the taxpayer."
Sec. 2.  G.S. 105-449.10(a), as amended by Section 2 of Chapter 1050 of the 1989 Session Laws, reads as rewritten:
"(a)	Each user-seller or user licensed under this Article shall keep records and make reports to the Secretary in accordance with regulations adopted by the Secretary.  The records and reports shall show all purchases, sales, deliveries, and use of fuel by the user-seller or user.  A licensed user that is not authorized by this subsection to file an annual report shall file a quarterly report on or before the last day of the month immediately following the end of the quarter.  A licensed user that uses fuel only in a motor vehicle operated in this State, has been granted permission to file an annual report under G.S. 105-449.45, or is exempt from G.S. 105-449.45 may, with the approval of the Secretary, file an annual report for a fiscal year by July 31 following the end of the year.  A user-seller shall file a report as required by G.S. 105-449.21."
Sec. 3.  Article 5A of Chapter 105 of the General Statutes is amended by adding a new section to read:
"§ 105-187.11.  Transition from sales tax to highway use tax for lessors and renters of motor vehicles.
A tax at the rate set in G.S. 105-187.5(b)	is levied on the gross receipts derived by a retailer from the lease or rental of a motor vehicle owned by the retailer before October 1, 1989, and leased or rented on or after that date.  A retailer subject to this tax may elect to pay highway use tax at the rate set in G.S. 105-187.3(a) on a motor vehicle owned by the retailer before October 1, 1989, and leased or rented on or after that date.  The retail value of a motor vehicle for which a retailer makes an election under this section is the value of the motor vehicle that would apply under G.S. 105-187.3(b) if the retailer received the motor vehicle because of a reason other than the sale of the motor vehicle on the date the retailer makes the election.
To make the election allowed by this section, a retailer shall complete a form provided by the Division, pay the tax due, and pay the fee set in G.S. 20-85(a)(9).  A retailer who makes this election may not receive credit for any tax paid on the motor vehicle under Article 5 of this Chapter or for any tax on gross receipts paid under this Article.  The Division shall notify the Secretary of Revenue of a retailer who makes an election under this section."
Sec. 4.  Section 19 of Chapter 771 of the 1989 Session Laws reads as rewritten:
"Sec. 19.  Section 2 of this act shall become effective as follows:  G.S. 20-37.21, created by this section, shall become effective April 1, 1992; the remainder of this section shall become effective September 1, 1990.  Sections 3, 4, and 12 through 16 of this act shall become effective April 1, 1992.  Section 18 of this act shall become effective June 1, 1989.  The remaining sections of this act shall become effective September 1, 1990."
Sec. 5.  G.S. 105-187.6 reads as rewritten:
"§ 105-187.6.  Exemptions from highway use tax.
(a)	Full Exemptions. – The tax imposed by this Article does not apply when a certificate of title is issued as the result of a transfer of a motor vehicle:
(1)	To the insurer of the motor vehicle under G.S. 20-109.1 because the vehicle is a salvage vehicle.
(2)	To either a manufacturer, as defined in G.S. 20-285, or a motor vehicle retailer for the purpose of resale other than lease or rental.
(3)	To the same owner to reflect a change or correction in the owner's name.
(4)	By will or intestacy.
(b)	Partial Exemptions. – Only the minimum tax imposed by this Article applies when a certificate of title is issued as a result of the transfer of a motor vehicle:
(1)	By a gift between a husband and wife or a parent and child.
	(2)	By a distribution of marital property as a result of a divorce.
(3)	To a secured party who has a perfected security interest in the motor vehicle.
(4)	To a partnership or corporation as an incident to the formation of the partnership or corporation and no gain or loss arises on the transfer under section 351 or section 721 of the Internal Revenue Code, or to a corporation by merger or consolidation in accordance with G.S. 55-110.
	(c)	Out-of-state Vehicles. – A maximum tax of one hundred dollars ($100.00) applies when a certificate of title is issued for a motor vehicle that, at the time of applying for a certificate of title, is and has been titled in another state for at least 90 days."
Sec. 6.  Section 2 of this act shall become effective January 1, 1991.  Section 5 of this act shall become effective September 1, 1990.  The remaining sections of this act are effective upon ratification.