GENERAL ASSEMBLY OF NORTH CAROLINA

SESSION 1991

S	1 

SENATE BILL 1016

Short Title:  Stock Broker Privilege License Tax.	(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 CONVERT THE SECURITY DEALER PRIVILEGE LICENSE TAX FROM A TAX BASED ON THE NUMBER OF OFFICES FROM WHICH SECURITIES ARE SOLD TO A TAX ON EACH INDIVIDUAL WHO SELLS SECURITIES, THEREBY TREATING SELLERS OF SECURITIES THE SAME AS OTHER PROFESSIONALS.
The General Assembly of North Carolina enacts:
Section 1.  G.S. 105-41(a) reads as rewritten:
"(a)	Every practicing attorney-at-law, practicing physician, veterinarian, surgeon, osteopath, chiropractor, chiropodist, dentist, oculist, optician, or optometrist, any person practicing any professional art of healing for a fee or reward, every practicing professional engineer as defined in Chapter 89C of the General Statutes, every practicing land surveyor as defined in Chapter 89C of the General Statutes, every securities dealer, as defined in G.S. 78A-2, who is an individual and every securities salesman as defined in G.S. 78A-2, every architect and landscape architect, photographer, canvasser for any photographer, agent of a photographer in transmitting pictures or photographs to be copied, enlarged, or colored, and every person, whether acting as an individual, as a member of a partnership, or as an officer or agent of a corporation, who is engaged in the business of selling or offering to sell real estate, buying or offering to buy real estate, negotiating the purchase, sale, or exchange of real estate, leasing or offering to lease real estate, renting or offering to rent real estate, collecting any rents as agent for another for compensation, or soliciting or negotiating loans on real estate as agent for another for a commission, brokerage, or other compensation shall apply for and obtain from the Secretary a statewide license for the privilege of engaging in the profession, business, or act and shall pay a tax of fifty dollars ($50.00) for the license. Provided, that no professional man or woman shall be required to pay a privilege tax after he or she has arrived at the age of 75 years.  
It shall be unlawful for a nonresident of this State to engage in the real estate business in this State, as defined in this section, unless the State of residence of such person will permit a resident of this State to engage in such business. Any person who shall engage in the real estate business in this State in violation of the terms of this provision shall be guilty of a misdemeanor and shall be punished in the discretion of the court; and further provided, that the obtaining of a real estate dealer's license by such person shall not authorize such nonresident to engage in the real estate business in this State, and provided further that in all prosecutions under this section, a certificate under the hand and seal of the Secretary that the accused filed no income tax returns with the Department of Revenue for the preceding taxable year shall be prima facie evidence that the accused is a nonresident and that the accused's license is void."
Sec. 2.  G.S. 105-67 is repealed.
Sec. 3.  G.S. 105-83 reads as rewritten:
"§ 105-83. Installment paper dealers.
(a)	Every person engaged in the business of dealing in, buying, or discounting installment paper, notes, bonds, contracts, or evidences of debt, where at the time of or in connection with the execution of said instruments, a lien is reserved or taken upon personal property located in this State to secure the payment of such obligations, shall apply for and obtain from the Secretary a State license for the privilege of engaging in such business or for the purchasing of such obligations in this State, and shall pay for such license an annual tax of one hundred dollars ($100.00).
(b)	In addition to obtaining a State license from the Secretary, each person subject to the tax levied in subsection (a) shall submit to the Secretary quarterly no later than the twentieth day of January, April, July, and October of each year, upon forms prescribed by the Secretary, a full, accurate, and complete statement, verified by the officer, agent, or person making the statement, of the total face value of the installment paper, notes, bonds, contracts, and evidences of debt dealt in, bought, or discounted within the preceding three calendar months and, at the same time, shall pay a tax of two hundred and seventy-five thousandths of one percent (.275%) of the face value of these obligations.
(c)	If any person deals in, buys, or discounts any obligations described in this section without obtaining the license required by this section or paying a tax imposed by this section, the person may not bring an action in a State court to enforce collection of an obligation dealt in, bought, or discounted during the period of noncompliance with this section until the person obtains the license and pays the amount of tax, penalties, and interest due.
(d)	This section does not apply to corporations liable for the tax levied under G.S. 105-102.3.
(e)	Counties, cities, and towns shall not levy any license tax on the business taxed under this section."
Sec. 4.  This act becomes effective July 1, 1992.