GENERAL ASSEMBLY OF NORTH CAROLINA

SESSION 1989

S	1 

SENATE BILL 1251

Short Title:  Air Pollution Tax.	(Public)
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Sponsors: Senators Barker; Tally, Richardson, Shaw, and Sands.
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Referred to:  Finance.
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May 10, 1989

A BILL TO BE ENTITLED
AN ACT TO LEVY AN AIR POLLUTION TAX ON THE EMISSION OF AIR CONTAMINANTS KNOWN TO CAUSE AIR POLLUTION.
The General Assembly of North Carolina enacts:
Section 1.  Article 21B of Chapter 143 of the General Statutes is amended by adding a new section to read:
"§ 143-215.115.  Air pollution tax.
(a)	Definitions.  In addition to the definitions in G.S. 143-212 and G.S. 143-213 applicable to air pollution, the following definitions apply in this section:
(1)	Permit.  An air quality permit issued pursuant to G.S. 143-215.108.  The term ‘permit' includes a new permit, a modified permit, and a renewed permit.
(2)	Person.  A person, as defined in G.S. 143-212, other than a State, federal, or local government agency.
(3)	Taxable emissions.  The amount of air contaminants known to cause air pollution that may be emitted under the permit.  If the permit does not specify an emission rate, then the taxable emissions are the actual emissions that would occur if the air contamination source were to operate constantly under maximum conditions allowed by the permit.
(b)	Tax Levied.  Every person required to obtain a permit under G.S. 143-215.108(a) shall pay an excise tax, in addition to all other fees and taxes imposed by law, on the taxable emissions under the permit of air contaminants known to cause air pollution.  The tax shall be at the following rates per pound of taxable emissions:
(1)	Category One.  Emissions of total suspended particulate (TSP) and carbon monoxide (CO) – one cent (1¢) per pound.
(2)	Category Two.  Emissions of volatile organic compounds (VOC), sulfur dioxide (SO2), nitrogen oxides (NOX), and total reduced sulfur (TRS) – two cents (2¢ per pound.
(3)	Category Three.  Emissions of noncarcinogenic toxic compounds and lead – three cents (3¢) per pound.
(4)	Category Four.  Emissions of carcinogenic toxic compounds – four cents (4¢) per pound.
If an air contamination source has taxable emissions of an air contaminant that falls into more than one category, then the higher tax rate shall apply to that contaminant.
(c)	Administration.  When the Commission issues a permit, it shall calculate the amount of the tax that will accrue under the permit on taxable emissions for each calendar quarter or part of a calendar quarter that the permit will be in effect.  The Department of Natural Resources and Community Development shall design, print, and furnish to each permit holder forms for filing returns and instructions to ensure the full collection of the tax.
(d)	When Tax Due and Payable.  The tax levied by this section is due and payable by the permit holder to the Department of Revenue in quarterly installments on or before the last day of the calendar quarter in which the tax accrues.  Every person liable for the tax shall, on or before the last day of each calendar quarter, prepare and render a return on the form furnished by the Department of Natural Resources and Community Development.
(e)	Enforcement.  The Department of Revenue shall collect and enforce the tax levied by this section.  All of the administrative provisions, penalties, and remedies of Article 9 of Chapter 105 shall apply to the tax levied by this section to the extent they are not inconsistent with this section.  The Department of Natural Resources and Community Development shall provide the Secretary of Revenue such information regarding permit holders, amounts and types of taxable emissions, the tax applicable to each permit, and such other matters as the Secretary of Revenue may request.
(f)	Additional Penalty.  In addition to the penalties and remedies provided in Article 9 of Chapter 105, there shall be an additional penalty for the following violations: (i) failure to obtain a permit required by G.S. 143-215.108(a) and (ii) emission of an air contaminant known to cause air pollution in excess of the amount of taxable emissions allowed under the permit.  The additional penalty is one hundred percent (100%) of the excess of the tax that would have been due during the period of the violation if the taxpayer had obtained the required permit for the amount and type of the actual emission over the tax that was paid for that period by the taxpayer.  The Department of Natural Resources and Community Development shall, within 10 days after it determines that a violation subject to the additional penalty has occurred, notify the Department of Revenue of the taxpayer who committed the violation, the amount of tax due for the period of the violation, and the amount of the additional penalty for the violation.
(g)	Actual Emissions; Refund.  If a permit holder can demonstrate to the satisfaction of the Commission that its actual emissions for a calendar quarter were less than the amount of its taxable emissions for that quarter, the permit holder may receive a refund equal to the excess of the tax paid for the calendar quarter over the tax that would have been due if the permit holder's taxable emissions had been equal to its actual emissions.  In order to receive a refund, the permit holder shall apply to the Commission within 60 days after the end of the calendar quarter for which the refund is sought.  If the Commission determines that a permit holder is entitled to a refund under this subsection, it shall notify the Secretary of Revenue of the amount of the refund due and the Secretary shall make the refund.  A permit holder may receive a refund for no more than two quarters in each calendar year.
(h)	Rules.  The Department of Revenue may adopt appropriate rules to implement the provisions of this section."
Sec. 2.  The Environmental Management Commission shall, before July 1, 1990, furnish to every person who holds an air permit issued pursuant to G.S. 143-215.108 forms for filing returns and instructions as provided in G.S. 143-215.115(c) enacted by Section 1 of this act.
Sec. 3. G.S. 143-215.108 is amended by adding a new subsection to read:
"( c)	A person who holds a permit issued under subsection (a) may apply to modify the permit so that the taxable emissions, as defined in G.S. 143-215.115, allowed under the permit are not unreasonably in excess of the actual emissions expected to occur from the source.  The Commission shall act on each application under this subsection as quickly as possible.  The provisions of subsection (b) regarding permit applications shall apply to applications for permit modifications under this subsection."
Sec. 4.  Section 1 of this act shall become effective July 1, 1990, and applies to taxable emissions allowed on or after that date.  The remainder of this act is effective upon ratification.