GENERAL ASSEMBLY OF NORTH CAROLINA

SESSION 1991

S	1 

SENATE BILL 1012

Short Title:  Reinstate Sales Tax Deletions.	(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 TO REINSTATE TWO SALES TAX PROVISIONS THAT WERE INADVERTENTLY DELETED IN PRIOR LEGISLATION.
The General Assembly of North Carolina enacts:
Section 1.  G.S. 105-164.13(16) reads as rewritten:
"(16)	Sales of any of the following articles:
a.	A used article taken in trade, or a series of trades, as a credit or part payment on the sale of a new article if tax is paid on the sales price of the new article.  ‘New article' means the original stock in trade of the merchant and is not limited to a newly manufactured article.
b.	An article repossessed by the vendor if tax was paid on the sales price of the article."
Sec. 2.  G.S. 105-164.38 reads as rewritten:
"§ 105-164.38. Tax shall be a lien.
The tax imposed by this Article shall be a lien upon all personal property of any person who is required by this Article to obtain a license to engage in business and who stops engaging in the business by transferring the business, transferring the stock of goods of the business, or going out of business.  A person who stops engaging in business shall file the return required by this Article within 30 days after transferring the business, transferring the stock of goods of the business, or going out of business. 
Any person to whom the business or the stock of goods was transferred shall withhold from the consideration paid for the business or stock of goods an amount sufficient to cover the taxes due until the person selling the business or stock of goods produces a statement from the Secretary showing that the taxes have been paid or that no taxes are due.  If the person who buys a business or stock of goods fails to withhold an amount sufficient to cover the taxes and the taxes remain unpaid after the 30-day period allowed, the buyer is personally liable for the unpaid taxes to the extent of the greater of the following:
(1)	The consideration paid by the buyer for the business or the stock of goods.
(2)	The fair market value of the business or the stock of goods.
The period of limitations for assessing liability against the buyer of a business or the stock of goods of a business and for enforcing the lien against the property shall expire one year after the end of the period of limitations for assessment against the person who sold the business or the stock of goods.  Except as otherwise provided in this section, a person who buys a business or the stock of goods of a business and that person's liability for unpaid taxes are subject to the provisions of G.S. 105-241.1, 105-241.2, 105-241.3, and 105-241.4 and to other remedies for the collection of taxes to the same extent as if the person had incurred the original tax liability."
Sec. 3.  Section 1 of this act becomes effective July 1, 1992.  The remaining sections of this act are effective upon ratification.