GENERAL ASSEMBLY OF NORTH CAROLINA

SESSION 1991

S	1 

SENATE BILL 1009

Short Title:  License, Excise Tax Technical Changes. 	(Public)
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Sponsors: Senators Winner, Carter, Plexico, Seymour, and Staton.
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Referred to:  Finance.
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May 28, 1992

A BILL TO BE ENTITLED
AN ACT MAKING TECHNICAL AND ADMINISTRATIVE CHANGES TO THE LICENSE AND EXCISE TAX LAWS.
The General Assembly of North Carolina enacts:
Section 1.  G.S. 105-65.1(b)(1) reads as rewritten:
  	" (1)	In addition to the license tax imposed under subsection (a), a distributor or operator of soft drink dispensers, except open cup drink dispensers, shall annually pay to the Secretary of Revenue a soft drink dispenser tax in an amount based on the number of dispensers operated, maintained, or placed on location by the distributor or operator on July 1 of the license year. The amount of tax due is as follows:
Number of Dispensers	Amount of Tax
  1-50	$    7.00 per dispenser
51-100	   535.00
101-150	   892.50
151-200	 1,250.00
200 and up	 1,250.00 plus $357.50 for
each additional 50
	dispensers or fraction
thereof
	A distributor or operator who was not in business on July 1 of the license year shall pay a tax based on the number of dispensers the distributor or operator reasonably expects to operate, maintain, or place on location during the ensuing license year. If the number of dispensers operated, maintained, or placed on location during that year exceeds the distributor's or operator's estimate, the distributor or operator shall, within 20 days of the close of the license year, report the excess to the Secretary and pay any additional tax due according to the above table."
Sec. 2.  G.S. 105-85(b)(1) reads as rewritten:
"(1)	Laundry. – A business where steam, electricity, or other power is used to clean fabric, including a wet or damp wash laundry, a launderette, a launderall, or a similar business. The term ‘launderettes and launderalls' means commercial establishments in which automatic washing machines and dryers are installed for the use of individual customers, including those that contain coin-operated or coin-activated washing machines; however, the term does not include an apartment building in which these machines are provided by the apartment building owner or manager for the exclusive use and convenience of tenants of the building."
Sec. 3.  Part 1 of Article 2A of Chapter 105 of the General Statutes is amended by adding a new section to read:
"§ 105-113.4A.  Licenses.
(a)	General. – To obtain a license required by this Article, an applicant must apply to the Secretary and pay the tax due for the license.  A license is not transferable or assignable and must be displayed at the place of business for which it is issued.
(b)	Refund. – A refund of a license tax is allowed only when the tax was collected or paid in error.  No refund is allowed when a license holder surrenders a license or the Secretary revokes a license.
(c)	Duplicate or Amended License. – Upon application to the Secretary, a license holder may obtain without charge one of the following:
(1)	A duplicate license, if the license holder establishes that the original license has been lost, destroyed, or defaced.
(2)	An amended license, if the license holder establishes that the location of the place of business for which the license was issued has changed.
A duplicate or amended license shall state that it is a duplicate or amended license, as appropriate."
Sec. 4.  G.S. 105-113.12 reads as rewritten:
"§ 105-113.12. Distributor must obtain license.
(a)	A distributor shall obtain for each place of business a continuing distributor's license and shall pay a tax of twenty-five dollars ($25.00) for the license.
(b)	For the purposes of this section, ‘place of business' means any place where unstamped packages of cigarettes are received or stored by a distributor for the purposes of affixing stamps thereto, and any place where a distributor actually affixes stamps to unstamped packages of cigarettes.
(c)	An out-of-state distributor may obtain a distributor's license upon compliance with the provisions of G.S. 105-113.24 and payment of a tax of twenty-five dollars ($25.00)."
Sec. 5.  G.S. 105-113.13 reads as rewritten:
"§ 105-113.13.  Secretary may investigate applicant for distributor's license and require a bond.
					(a)	Investigation. – The Secretary may investigate an applicant for a distributor's license to determine if the  information the applicant submits with the application is accurate and if the applicant is eligible to be licensed as a distributor.  The Secretary may decline to issue a distributor's license to an applicant when the Secretary has reasonable cause to believe any of the following:
(1)	That the applicant has willfully withheld information requested by the Secretary for the purpose of determining the applicant's eligibility for the license.
(2)	That information submitted with the application is false or misleading.
(3)	That the application is not made in good faith.
(b)	Bond. – The Secretary may require a distributor to furnish a bond in an amount that adequately protects the State from loss if the distributor fails to pay taxes due under this Part.  A bond shall be conditioned on compliance with this Part, shall be payable to the State, and shall be in the form required by the Secretary.  A bond shall be executed by the distributor as principal and by an indemnity company licensed to do business under the insurance laws of this State as surety."
Sec. 6.  G.S. 105-113.14 and G.S. 105-113.15 are repealed.
Sec. 7.  G.S. 105-113.16(e) reads as rewritten:
"(e)	If any person licensed under the provisions of G.S. 105-65.1, 105-102.5(b)(7), 105-164.4, 105-164.5, 105-164.6, or 105-164.29 is convicted of any offense under this Article, the Secretary may revoke any or all licenses issued to the person under these statutes.  The provisions of subsection (b) concerning notice, hearing, review, and appeal apply to a revocation of a license under this subsection."
Sec. 8.  G.S. 105-113.17 reads as rewritten:
"§ 105-113.17.  Identification of dispensers.
		Each vending machine that dispenses cigarettes must be marked to identify its owner in the manner required by the Secretary."
Sec. 9.  G.S. 105-113.24(b) reads as rewritten:
"(b)	A nonresident distributor must agree to submit the distributor's books, accounts, and records to reasonable examination by the Secretary or the Secretary's duly authorized agents. The Secretary may require a nonresident distributor to file a bond in accordance with G.S. 105-113.13."
Sec. 10.  G.S. 105-113.35 is amended by adding a new subsection to read:
"( d)	Manufacturer's Option. – A manufacturer who is not a retail dealer and who ships tobacco products other than cigarettes to either a wholesale dealer or retail dealer licensed under this Part may apply to the Secretary to be relieved of paying the tax imposed by this section on the tobacco products.  Once granted permission, a manufacturer may choose not to pay the tax until otherwise notified by the Secretary.  To be relieved of payment of the tax imposed by this section, a manufacturer must comply with the requirements set by the Secretary."
Sec. 11.  G.S. 105-113.36 reads as rewritten:
"§ 105-113.36.  Wholesale dealer and retail dealer must obtain license.
A wholesale dealer shall obtain for each place of business a continuing tobacco products license and shall pay a tax of twenty-five dollars ($25.00) for the license.  A retail dealer shall obtain for each place of business a continuing tobacco products license and shall pay a tax of ten dollars ($10.00) for the license.  A ‘place of business' is a place where a wholesale dealer or where a retail dealer makes tobacco products other than cigarettes or a wholesale dealer or a retail dealer receives or stores non-tax-paid tobacco products other than cigarettes."
Sec. 12.  G.S. 105-113.37(c) is repealed.
Sec. 13.  G.S. 105-113.44(6) reads as rewritten:
"(6)	Natural. – Without added ingredients of any kind other than vitamins, minerals, or ingredients extracted from an item and later returned to the item during the manufacturing process.  Added ingredients include sugar, salt, preservatives, coloring, carbonation, and artificial flavoring."
Sec. 14.  G.S. 105-113.45 reads as rewritten:
"§ 105-113.45.  Excise taxes on soft drinks and base products.
(a)	Bottled Soft Drinks. – An excise tax of one cent (1¢) is levied on each bottled soft drink.
(b)	Repealed by Session Laws 1991, c. 689, s. 276.
(c)	Liquid Base Products. – An excise tax of one dollar ($1.00) a gallon, or four-fifths of a cent (4/5¢) an ounce or a fraction of an ounce, is levied on a liquid base product.  The tax applies regardless whether the liquid base product is diverted to and used for a purpose other than making a soft drink.
(d)	Dry Base Products. – An excise tax is levied on a dry base product at the rate:
(1)	Of one cent (1¢) an ounce or a fraction of an ounce if the dry base product is not converted into a syrup or other liquid base product before it is used to make a soft drink.
(2)	That would apply under subsection (c) to the resulting liquid base product if the dry base product is converted into a liquid base product before it is used to make a soft drink.
(e)	Repealed by Session Laws 1991, c. 689, s. 276."
Sec. 15.  G.S. 105-113.46(9) reads as rewritten:
"(9)	A base product for domestic use that either contains milk or, according to directions on the base product's container, requires milk to be added to make a soft drink."
Sec. 16.  G.S. 105-113.51(e) is repealed.
Sec. 17.  This act is effective upon ratification.