GENERAL ASSEMBLY OF NORTH CAROLINA

SESSION 1989

S	1 

SENATE BILL 1000

Short Title:  Cigarette Manufacturers' Tax.	(Public)
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Sponsors: Senators Odom, Walker, and Marvin.
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Referred to:  Manufacturing and Labor.
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April 25, 1989

A BILL TO BE ENTITLED
AN ACT TO IMPOSE A ONE-HALF CENT PER PACK LICENSE TAX ON CIGARETTE MANUFACTURERS WHEN KENTUCKY AND VIRGINIA ENACT SIMILAR TAXES AND TO ALLOCATE PART OF THE TAX PROCEEDS FOR MARKETING AND PROMOTION OF AGRICULTURAL PRODUCTS AND FOR RESEARCH ON ALTERNATE USES FOR TOBACCO.
The General Assembly of North Carolina enacts:
Section 1.  Article 2 of Chapter 105 of the General Statutes is amended by inserting a new section before G.S. 105-103 to read:
"§ 105-102.5.  Cigarette manufacturers.
(a)	Tax.  Every person engaged in the business of manufacturing cigarettes shall apply for and obtain from the Secretary of Revenue a license for the privilege of doing business in this State.  The manufacturer shall pay a tax of five dollars ($5.00) for this license.  In addition, the manufacturer shall, within 10 days after the last day of each month, report to the Secretary the number of cigarettes manufactured by that person during the month and pay a tax at the rate of one-fourth mill per individual cigarette manufactured.  This additional tax is due when the report is filed.  No county, city, or town may impose a license tax on the business taxed under this section.
(b)	Cigarette Defined.  As used in this section, ‘cigarette' means:
(1)	A roll of tobacco wrapped in paper or a substance that does not contain tobacco; or
(2)	A roll of tobacco wrapped in a substance that contains tobacco and that, because of its appearance, the type of tobacco used in the filler, or its packaging or labeling, is likely to be offered to or purchased by consumers as a cigarette described in subdivision (1).
(c)	Allocation of Proceeds.  The Secretary shall, on a monthly basis, remit one percent (1%) of the proceeds of the tax levied under this section to the Department of Agriculture, to be used for marketing and promotion of North Carolina agricultural products.  In addition, the Secretary shall, on  a monthly basis, remit one percent (1%) of the proceeds of the tax levied under this section to the Board of Governors of The University of North Carolina, to be allocated among tobacco research programs in the University system for research to develop alternate uses for tobacco.  The Secretary shall deposit the remaining proceeds of the tax in the General Fund."
Sec. 2.  G.S. 105-109.1 reads as rewritten:
"§ 105-109.1. Interest.
With respect to the taxes on gross receipts levied in G.S. 105-37.1(a), 105-38(7), 105-39(c) and 105-65.1(b)(2), the tax on installment paper dealers levied in G.S. 105-83(b), and the tax on cigarette manufacturers levied in G.S. 105-102.5(a), all such taxes, including assessments of taxes or additional taxes, shall bear interest from the time such taxes were due to have been paid until paid, at rates established pursuant to G.S. 105-241.1(i)."
Sec. 3.  The first monthly report required by G.S. 105-102.5(a), as enacted by this act, is due on or before the 10th day of the first month following the month this act becomes effective.
Sec. 4.  This act shall become effective July 1, 1990, or on the first day of the first month following the enactment by Kentucky and Virginia of cigarette manufacturer's taxes similar to the tax levied by Section 1 of this act and in amounts equal to or greater than one-fourth mill per individual cigarette, whichever event occurs first.