GENERAL ASSEMBLY OF NORTH CAROLINA

SESSION 1989

S	2 

SENATE BILL 670*
Second Edition Engrossed 7/26/89

Short Title:  Raise Inventory Reimbursement. 	(Public)
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Sponsors: Senators Raynor and Tally.
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Referred to:  Finance.
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March 27, 1989

A BILL TO BE ENTITLED
AN ACT TO INCREASE THE STATE REIMBURSEMENT TO LOCAL GOVERNMENTS FOR REVENUE LOST DUE TO THE REPEAL OF THE PROPERTY TAX ON INVENTORY.
The General Assembly of North Carolina enacts:
Section 1.  G.S. 105-277A(c2) reads as rewritten:
"*(c2)	Supplemental Distribution.  As soon as practicable after January 1, 1989, the Secretary shall determine, with respect to each county and city, whether the sum of (i) the amount the county or city received under subsection (c), plus (ii) the amount the county or city received under subsection (c1), plus (iii) three and four-tenths percent (3.4%) of the total distribution received by the county or city under G.S. 105-472, 105-486, 105-493, 105-501, and Chapter 1096 of the 1967 Session Laws between January 1, 1988, and December 31, 1988, is less than one hundred percent (100%) of the amount of taxes the county or city actually levied on inventories owned by retailers and wholesalers for the 1987-88 tax year.  If that sum is less than one hundred percent (100%) of the amount of taxes the county or city actually levied on those inventories for the 1987-88 tax year, the Secretary shall distribute to that county or city a supplemental amount equal to the amount by which one hundred percent (100%) of the taxes it actually levied on inventories owned by retailers and wholesalers for the 1987-88 tax year exceeds the total of subdivisions (i), (ii), and (iii).
Except as provided in subsection (g)	of this section, each year thereafter, as soon as practicable after January 1, the Secretary shall distribute to each county and city the amount it received the previous year under this subsection."
Sec. 2.  This act is effective upon ratification.