GENERAL ASSEMBLY OF NORTH CAROLINA
1989 SESSION

CHAPTER 1001
HOUSE BILL 2402

AN ACT TO EXPAND THE EGG PROMOTION TAX TO INCLUDE PROCESSED EGGS.

The General Assembly of North Carolina enacts:

Section 1.   G.S. 106-245.32 reads as rewritten:
"§ 106-245.32.  Levy of tax; rules.
An excise tax is levied on eggs and processed eggs sold for use in this State.  The tax on eggs is five cents (5¢) for each case of 30 dozen eggs.  The tax on processed eggs is eleven cents (11¢) for each 100 pounds of processed eggs sold for use in this State.  The tax imposed by this section is payable only once on the same eggs or processed eggs.
Processed eggs include frozen eggs, liquid eggs, and hard-cooked eggs.  'Use' means consumption by the consumer.  The Board may adopt rules necessary to administer this tax."
Sec. 2.  G.S. 106-245.33 reads as rewritten:
"§ 106-245.33.  Report and payment of tax by handler; definition and functions of handler.
(a)	The tax imposed by this Article is payable monthly to the Department by the handler of eggs or processed eggs.  The tax is due when a report is required to be filed.  A handler shall file a report with the Department on a form provided by the Department within 20 days after the end of each month.  The report shall state the volume of eggs or processed eggs handled by the handler during the preceding month. 
(b)	The term 'handler' means any person who operates a grading station in North Carolina, a packer, huckster, or distributor who handles eggs in North Carolina, a farmer who packs, processes, or otherwise performs the functions of a handler in North Carolina, or a distributor or seller of processed eggs.  The term 'handler' includes any person in North Carolina who purchases eggs for sale or distribution or any farmer in North Carolina who sells or distributes eggs to anyone other than a registered handler.
For purposes of this Article, the functions of a handler of eggs or processed eggs include the sale, distribution, or other disposition of eggs or processed eggs in North Carolina regardless of where the eggs or processed eggs were produced or purchased.
The term 'registered handler' means any person who has registered with the Department to receive monthly return forms for reporting the tax levied by this Article.
Every person, whether inside or outside the State, who engages in business in North Carolina as a handler is required to register and to collect and pay the tax due on all eggs or processed eggs sold for use in this State.  A handler shall maintain a certificate of registration, file returns, and perform all other duties required of handlers."
Sec. 3.  G.S. 106-245.34 reads as rewritten:
"§ 106-245.34.  Exemptions.
Eggs sold by a handler who sells less than 500 cases a year are exempt from the tax levied under this Article.  Processed eggs sold by a handler who sells less than 1,000 pounds of processed eggs a year are exempt from the tax levied under this Article.  The Board shall establish a procedure for returning taxes paid on exempt eggs or processed eggs."
Sec. 4.  G.S. 106-245.35 reads as rewritten:
"§ 106-245.35.  Records to be kept by handler.
The handler shall keep a complete record of the eggs or processed eggs handled by him for a period of not less than two years from the time the eggs  or processed eggs were handled.  These records shall be open for inspection by the Commissioner or his duly authorized agents and shall be established and maintained as required by the Commissioner."
Sec. 5.  G.S. 106-245.38 reads as rewritten:
"§ 106-245.38.  Violations.
(a)	It shall be a misdemeanor for any handler knowingly to report falsely to the Department the quantity of eggs or processed eggs handled by him during any period, to falsify the records of the eggs or processed eggs handled by him, to fail to keep a complete record of the eggs or processed eggs handled by him, or to fail to preserve the records for a period of not less than two years from the time the eggs or processed eggs are handled.
(b)	It shall be a violation of the North Carolina Egg Law, Article 25A of this Chapter, for a handler to fail to register as required by this Article.  Any eggs transported, sold, or offered for sale by a handler who is not a registered handler shall be subject to the stop-sale and penalty provisions of the North Carolina Egg Law."
Sec. 6.  This act shall become effective October 1, 1990.
In the General Assembly read three times and ratified this the 20th day of July, 1990.