GENERAL ASSEMBLY OF NORTH CAROLINA

SESSION 1991

H	1 

HOUSE BILL 10

Short Title:  October 1, 1989, Vehicle Inventory.	(Public)
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Sponsors: Representatives Lilley, Abernethy, Brawley, and Hasty.
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Referred to:  Rules.
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February 4, 1991

A BILL TO BE ENTITLED
AN ACT TO ALLOW LESSORS AND RENTERS OF MOTOR VEHICLES TO ELECT TO PAY HIGHWAY USE TAX ON MOTOR VEHICLES OWNED ON OCTOBER 1, 1989, AND TO CLARIFY THAT THESE MOTOR VEHICLES ARE OTHERWISE SUBJECT TO THE GROSS RECEIPTS TAX.
The General Assembly of North Carolina enacts:
Section 1.  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 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. 2.  This act is effective upon ratification.