GENERAL ASSEMBLY OF NORTH CAROLINA

SESSION 1991

H	1 

HOUSE BILL 23

Short Title:  Fuel Tax Changes To Enter Fuel Pact.	(Public)
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Sponsors: Representatives Lilley, Abernethy, Brawley, and Hasty.
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Referred to:  Finance.
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February 6, 1991

A BILL TO BE ENTITLED
AN ACT TO MODIFY THE FUEL TAX STATUTES TO ENABLE NORTH CAROLINA TO ENTER THE INTERNATIONAL FUEL TAX AGREEMENT.
The General Assembly of North Carolina enacts:
Section 1.  G.S. 105-449.22 reads as rewritten:
"§ 105-449.22. Leased motor vehicles.
	" " " 		The user under this Article of fuel consumed by a leased motor vehicle whose operations are reported under Article 36B of this Chapter is the person who is the motor carrier under Article 36B for reporting operations of the motor vehicle.  The user under this Article of fuel consumed by a leased motor vehicle whose operations are not reported under Article 36B of this Chapter is the person who is liable for payment for the fuel consumed by the motor vehicle."
Sec. 2.  G.S. 105-449.37(a) reads as rewritten:
"(a)	Definitions. –  As used in this Article unless the context clearly requires otherwise:
(1)	'Motor carrier' means every person, firm, or corporation who operates or causes to be operated on any highway in this State a motor vehicle used, designed, or maintained for transportation of persons or property and (i) having two axles and a gross vehicle weight or registered gross vehicle weight exceeding 26,000 pounds, (ii) having three or more axles regardless of weight, or (iii) used in combination when the weight of the combination exceeds 26,000 pounds gross vehicle weight.  The term does not include the United States, the State, or a political subdivision of the State.
(1a)	'Motor vehicle' means motor vehicle as defined in G.S. 20-4.01(23) except that the term does not include special mobile equipment as defined in G.S. 20-4.01(44) or recreational vehicles.
	(2)	'Operations' means operations of all vehicles described in subdivision (1), whether loaded or empty and whether or not operated for compensation.
(3)	'Secretary' means the Secretary of Revenue."
Sec. 3.  G.S. 105-449.39 reads as rewritten:
"§  105-449.39.  Credit for payment of motor fuel tax.
Every motor carrier subject to the tax levied by this Article is entitled to a credit for tax paid by the carrier on fuel purchased in the State at a rate equal to the flat cents-per-gallon rate plus the variable cents-per-gallon rate of tax in effect during the quarter for which the credit is claimed.  To obtain this credit, the motor carrier must furnish evidence satisfactory to the Secretary that the tax for which the credit is claimed has been paid.
	If the amount of a credit to which a motor carrier is entitled for a quarter exceeds the motor carrier's liability for that quarter, the excess may, in accordance with rules adopted by the Secretary, be refunded to the motor carrier or carried forward and applied to the motor carrier's tax liability for another quarter. Before the Secretary allows a motor carrier a refund, the Secretary may audit the motor carrier's records or require the motor 
		carrier to furnish a bond under G.S. 105-449.40."
Sec. 4.  G.S. 105-449.40 reads as rewritten:
"§ 105-449.40. Secretary may require bond.
The Secretary may require a motor carrier to furnish a bond when any of the following occurs:
(1)	The motor carrier fails to file a report within the time required by this Article.
(2)	The motor carrier fails to pay a tax when due under this Article.
(3)	After auditing the motor carrier's records, the Secretary determines that a bond is needed to protect the State from loss in collecting the tax due under this Article.
A bond required of a motor carrier under this section may not exceed five hundred dollars ($500.00) or four times the amount of the motor carrier's average tax liability or refund for a reporting period, whichever is greater.   A bond must be in the form required by the Secretary."
Sec. 5.  G.S. 105-449.42A reads as rewritten:
"§ 105-449.42A. Leased motor vehicles.
(a)	Lessor in Leasing Business. –" A lessor who is regularly engaged in the business of leasing or renting motor vehicles without drivers for compensation is the motor carrier for a leased or rented motor vehicle unless the lessee of the leased or rented motor vehicle gives the Secretary written notice, by filing a report or otherwise, that the lessee is the motor carrier.  In that circumstance, the lessee is the motor carrier for the leased or rented motor vehicle.
Before a lessee gives the Secretary written notice under this subsection that the lessee is the motor carrier, the lessee and lessor must make a written agreement for the lessee to be the motor carrier.  Upon request of the Secretary, the lessee must give the Secretary a copy of the agreement.
(b)	Independent Contractor. –The lessee of a motor vehicle that is leased from an independent contractor is the motor carrier for the leased motor vehicle unless either of the following applies:
(1)	The motor vehicle is leased for fewer than 30 days.
(2)	The motor vehicle is leased for at least 30 days and the lessor gives the Secretary written notice, by filing a report or otherwise, that the lessor is the motor carrier.
If either of these circumstances applies, the lessor is the motor carrier for the leased motor vehicle.
Before a lessor gives the Secretary written notice under subdivision (2)	that the lessor is the motor carrier, the lessor and lessee must make a written agreement for the lessor to be the motor carrier.  Upon request of the Secretary, the lessor must give the Secretary a copy of the agreement.
(c)	Liability. – Subsections (a) and (b) govern the primary liability of lessors and lessees of motor vehicles under this Article. Both the lessor and lessee, however, are jointly and severally liable for compliance with this Article."
Sec. 6.  G.S. 105-449.47 reads as rewritten:
"§ 105-449.47.  Registration of vehicles.
A motor carrier may not operate or cause to be operated in this State any vehicle listed in the definition of motor carrier unless both the motor carrier and the motor vehicle are registered with the Secretary for purposes of the tax imposed by this Article.
Upon application, the Secretary shall register a motor carrier and shall issue at least one identification marker for each motor vehicle operated by the motor carrier.  A copy of the registration of a motor carrier shall be carried in each motor vehicle operated by the motor carrier when the vehicle is in this State.  An identification marker shall be clearly displayed at all times and shall be affixed to the vehicle for which it was issued in the place and manner designated by the Secretary.  Registrations and identification markers required by this section shall be issued on a calendar year basis.  The Secretary may renew a registration or an identification marker without issuing a new registration or identification marker.  All identification markers issued by the Secretary remain the property of the State.  The Secretary may withhold or revoke a registration or an identification marker when a motor carrier fails to comply with this Article or Article 36A of this Subchapter."
Sec. 7.  This act becomes effective January 1, 1992.