GENERAL ASSEMBLY OF NORTH CAROLINA

SESSION 1991

S	1 

SENATE BILL 841

Short Title:  Additional Budget Funds.	(Public)
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Sponsors: Senators Basnight, Plyler; Ballance, Barnes, Block, Conder, Cooper, Goldston, Hunt, Hyde, Johnson, Kaplan, Lee, Martin of Pitt, Martin of Guilford, Marvin, Murphy, Odom, Parnell, Perdue, Plexico, Raynor, Richardson, Royall, Sands, Seymour, Sherron, Soles, Speed, Staton, Tally, Walker, Ward, Warren, and Winner.
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Referred to:  Appropriations.
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April 29, 1991

A BILL TO BE ENTITLED
AN ACT TO MAKE OTHER BUDGET APPROPRIATIONS FROM THE GENERAL FUND FOR CURRENT OPERATIONS.
The General Assembly of North Carolina enacts:
Section 1.  There is appropriated from the General Fund to the Office of State Budget and Management the sum of $100,000,000 for the 1991-92 fiscal year and the sum of $100,000,000 for the 1992-93 fiscal year to establish a Special Reserve Fund for the Comprehensive Major Medical plan for Teachers and State Employees.
Sec. 2.  (a) There is created in the Office of State Budget and Management a special reserve to be known as the Local Government Reimbursement and Tax Sharing Reserve.  Funds in the reserve shall be distributed to local governments as provided by statute.  There is appropriated from the General Fund to the Local Government Reimbursement and Tax Sharing Reserve the sum of $474,606,174 for the 1991-92 fiscal year and the sum of $474,606,174 for the 1992-93 fiscal year to be distributed as provided in G.S. 105-113.82, 105-116(d), 105-120(c), 105-164.44C, 105-213, 105-213.1, 105-275.1, 105-277A, and 105-277.1A.
(b)	G.S. 105-113.82 reads as rewritten:
"§ 105-113.82.  Appropriation of amount equal to part of beer and wine taxes.
(a)	Amount, Method. – An amount equal to the following percentages of the net amount of excise taxes collected, during the period that began October 1, 1989, and ended September 30, 1990, on the sale of malt beverages and wine, less the amount of the net proceeds credited to the Department of Agriculture under G.S 105-113.81A, is annually appropriated from the General Fund to the counties and cities in which the retail sale of these beverages is authorized:
(1)	Of the tax on malt beverages levied under G.S. 105-113.80(a), twenty-three and three-fourths percent (23 3/4%);
(2)	Of the tax on unfortified wine levied under G.S. 105-113.80(b), sixty-two percent (62%); and
(3)	Of the tax on fortified wine levied under G.S. 105-113.80(b), twenty-two percent (22%).
If malt beverages, unfortified wine, or fortified wine may be licensed to be sold at retail in both a county and a city located in the county, both the county and city shall receive a portion of the amount appropriated, that portion to be determined on the basis of population. If one of these beverages may be licensed to be sold at retail in a city located in a county in which the sale of the beverage is otherwise prohibited, only the city shall receive a portion of the amount appropriated, that portion to be determined on the basis of population. The amount of the appropriation to be distributed under subdivisions (1), (2), and (3) shall be computed separately.
(b)	Reduction in Appropriation. – Where the sale of malt beverages, unfortified wine, or fortified wine is prohibited in a defined area of a city or county in which the sale of the beverage is authorized, the amount that would otherwise be appropriated to the city or county on the basis of population under subsection (a) shall be reduced in the same ratio that the area of the defined area bears to the total area of the city or county, unless the defined area is a city. If the defined area in a county is a city, the reduction in the amount that would otherwise be appropriated to the county under subsection (a) shall be based on population instead of area.
	(c) Exception. – Notwithstanding subsection (a), in a county in which ABC stores have been established by petition, the amount appropriated shall be distributed as though the entire county had approved the retail sale of a beverage whose retail sale is authorized in part of the county.
(d)	Time. – The appropriation shall be distributed to cities and counties within 60 days after September 30 of each year.
(e)	Population Estimates. – To determine the population of a city or county for purposes of the distribution required by this section, the Secretary shall use the most recent annual estimate of population certified by the State Budget Officer.
(f)	City Defined. – As used in this section, the term ‘city' means a city as defined in G.S. 153A-1(1) or an urban service district defined by the governing body of a consolidated city-county.
(g)	Use of Funds. – Funds appropriated to a county or city under this section may be used for any public purpose.
	."
(c)	G.S. 105-116(d) reads as rewritten:
"(d)	Appropriation. There is annually appropriated from the General Fund to each municipality an amount that equals three and nine hundredths percent (3.09%) of the taxable gross receipts derived, from April 1, 1990, to March 31, 1991, by an electric power company and a natural gas company from sales within the municipality of the commodities and services described in subsection (a).  The Secretary of Revenue shall transfer the amount appropriated to a municipality in quarterly installments on or before September 15, December 15, March 15, and June 15 in proportion to the taxable gross receipts derived within the municipality during the preceding calendar quarter.  If a company's report does not state the company's taxable gross receipts derived within a municipality, the Secretary of Revenue shall determine a practical method of allocating part of the company's taxable gross receipts to the municipality.  Before transferring the amount appropriated by this subsection, the Secretary of Revenue shall certify the amount to be transferred distributed to the State Controller.  
As used in this subsection, the term ‘municipality' includes an urban service district defined by the governing board of a consolidated city-county.  The amount due an urban service district shall be distributed to the governing board of the consolidated city-county."
(d)	G.S. 105-120(c) reads as rewritten:
"(c)	Appropriation. There is annually appropriated from the General Fund to each municipality an amount that equals three and nine hundredths percent (3.09%) of the taxable gross receipts derived, from April 1, 1990, to March 31, 1991, from local telecommunications service provided within the municipality.  The Secretary of Revenue shall transfer the amount appropriated to a municipality in quarterly installments on or before September 15, December 15, March 15, and June 15 in proportion to the taxable gross receipts derived within the municipality during the preceding calendar quarter.  If a company's report does not state the company's taxable gross receipts derived within a municipality, the Secretary of Revenue shall determine a practical method of allocating part of the company's taxable gross receipts to the municipality.  Before transferring the amount appropriated by this subsection, the Secretary of Revenue shall certify the amount to be transferred to the State Controller.  
As used in this subsection, the term ‘municipality' includes an urban service district defined by the governing board of a consolidated city-county.  The amount due an urban service district shall be distributed to the governing board of the consolidated city-county."
(e)  G.S. 105-164.44C reads as rewritten:
"§ 105-164.44C. Reimbursement for sales taxes on food stamp foods and supplemental foods.
There is annually appropriated to each county and the cities in the county an amount equal to the amount of local sales taxes that would have been collected in the county during the 1989-90 fiscal year on foods purchased with food stamp coupons or supplemental food instruments in the county, had these foods not been exempt from tax under G.S. 105-164.13(38).  The Secretary shall distribute the amounts determined to be due each county between the county and the cities located in the county in accordance with the method by which local sales and use taxes are distributed in that county.  In order to pay for the reimbursement under this section and the cost to the Department of Revenue for administering the reimbursement, the Secretary of Revenue shall draw from the Local Government Reimbursement and Tax Sharing Reserve an amount equal to the amount of the reimbursement and the cost of administration."
(f)  G.S. 105-198 reads as rewritten:
"§ 105-198. Intangible personal property.
The intangible personal properties enumerated and defined in this Article are classified under authority of Section 2(2), Article V of the North Carolina Constitution.  The taxes are levied for the purposes stated in this Subchapter."
(g)  G.S. 105-213 reads as rewritten:
"§ 105-213.  Appropriation to counties and municipalities; use of appropriation. 
(a)	There is annually appropriated from the General Fund to counties and municipalities the net amount of revenue collected under this Article during the 1989-90 fiscal year, plus an amount equal to forty percent (40%) of the tax collected on accounts receivable during the 1989-90 fiscal year and less an amount equal to the costs during the preceding fiscal year of:
(1)	Refunds made during the fiscal year of taxes levied under this Article.
(2)	The Department of Revenue to collect and administer the taxes levied under this Article.
(3)	The Department of Revenue in performing the duties imposed by Article 15 of this Chapter.
(4)	The Property Tax Commission.
(5)	The Institute of Government in operating a training program in property tax appraisal and assessment.
The appropriation shall be distributed by August 30 of each year.  
The appropriation shall be allocated among the counties in proportion to the amount of taxes collected under this Article in each county during the preceding fiscal year.  The Secretary of Revenue shall keep a separate record by counties of the taxes collected under this Article. The Secretary shall allocate the amount appropriated under this section to the counties according to the county in which the taxes were collected.  The amounts so allocated to each county shall in turn be allocated between the county and the municipalities in the county in proportion to the total amount of ad valorem taxes levied by each during the fiscal year preceding the distribution.  After making these allocations, the Secretary of Revenue shall certify to the State Controller and to the State Treasurer the amount to be distributed to each county and municipality in the State.  The State Controller shall then issue a warrant on the State Treasurer to each county and municipality in the amount certified.
For the purpose of computing the distribution of the intangibles tax to any county and the municipalities located in the county for any year with respect to which the property valuation of a public service company is the subject of an appeal pursuant to the provisions of the Machinery Act, or to applicable provisions of federal law, and the Department of Revenue is restrained by operation of law or by a court of competent jurisdiction from certifying such valuation to the county and municipalities therein, the Department shall use the last property valuation of such public service company which has been so certified in order to determine the ad valorem tax levies applicable to such public service company in the county and the municipalities therein.
The chairman of each board of county commissioners and the mayor of each municipality shall report to the Secretary of Revenue information requested by the Secretary to enable the Secretary to allocate the amount appropriated by this section.  If a county or municipality fails to make a requested report within the time allowed, the Secretary may disregard the county or municipality in allocating the amount appropriated by this section.  The amount distributed to each county and municipality shall be used by the county or municipality in proportion to property tax levies made by it for the various funds and activities of the county or municipality, unless the county or municipality has pledged the amount to be distributed to it under this section in payment of a loan agreement with the North Carolina Solid Waste Management Capital Projects Financing Agency.  A county or municipality that has pledged amounts distributed under this section in payment of a loan agreement with the Agency may apply the amount the loan agreement requires.
(b)	For purposes of this section, the term ‘municipality' includes any urban service district defined by the governing board of a consolidated city-county, and the amounts due thereby shall be distributed to the government of the consolidated city-county."
(h)  G.S. 105-213.1 reads as rewritten:
"§ 105-213.1.  Additional appropriation to counties and municipalities.
(a)	Appropriation. – As soon as practicable after July 1 of 1986, the Secretary of Revenue shall allocate for distribution to each county and the municipalities located in the county the amount allocated to that county from taxes levied under G.S. 105-199, 105-200, and 105-205 for the last taxable year in which these taxes were levied, plus or minus a sum that equals the product of this amount and the percentage by which State disposable personal income has increased or decreased during the most recent 12-month period for which State personal income data has been compiled by the Bureau of Economic Analysis of the United States Department of Commerce.
Thereafter, by August 30 of 1987, 1988, 1989, and 1990, the Secretary shall allocate to each county the amount of funds allocated to the county under this section the preceding year, plus or minus a sum that equals the product of this amount and the percentage by which State disposable personal income has increased or decreased during the most recent 12-month period for which State personal income data has been compiled by the Bureau of Economic Analysis of the United States Department of Commerce.
Thereafter, by August 30 of each year, the Secretary shall allocate to each county the amount of funds allocated to the county under this section in 1990.
Amounts allocated to a county under this section shall in turn be divided and distributed between the county and the municipalities located in the county in accordance with the method of allocating intangible tax revenue between a county and the municipalities located in the county provided in G.S. 105-213.
(b)	Restrictions on Use. – Amounts distributed to a county or a municipality under this section are subject to the same restrictions as amounts distributed under G.S. 105-213.
(c)	Municipality Defined. – As used in this section, the term 'municipality' has the same meaning as in G.S. 105-213.
(d)	Source. – Funds distributed under this section shall be drawn from the Local Government Reimbursement and Tax Sharing Reserve."
(i)  G.S. 105-275.1(e) reads as rewritten:
"(e)	Source of Funds. – To pay for the distribution required by this section and the cost to the Department of Revenue of making the distribution, the Secretary of Revenue shall draw from the Local Government Reimbursement and Tax Sharing Reserve an amount equal to the amount distributed and the cost of making the distribution."
(j)  G.S. 105-277A(b) reads as rewritten:
"(b)	First Per Capita Distribution. – As soon as practicable after January 1 of 1989, the Secretary shall distribute to each taxing unit the unit's per capita share of the sum of fifteen million seven hundred forty-five thousand dollars ($15,745,000).  Thereafter, as soon as practicable after January 1 of 1990 and 1991, the Secretary shall distribute to each taxing unit the unit's per capita share of an amount equal to the sum distributed to all taxing units the previous year under this subsection plus or minus the product of the sum distributed the previous year and the percentage by which State personal income has increased or decreased during the most recent 12-month period for which State personal income data has been compiled by the Bureau of Economic Analysis of the United States Department of Commerce.
Thereafter, as soon as practicable after January 1 of each year the Secretary shall distribute to each taxing unit the unit's per capita share of the sum that this subsection provided was to be distributed to all taxing units in 1991.
To make the per capita distributions required by this subsection, the Secretary shall first allocate the sum to be distributed among the counties on a per capita basis.  The Secretary shall then compute a per capita distributable amount for each county by dividing the amount allocated to a county by the total population of the county, plus the population of any incorporated towns and cities located in the county.  Each taxing unit in a county, including the county itself, shall receive the product of the population of the taxing unit and the per capita distributable amount for that county.
A city or county that receives funds under this subsection and that collects taxes for another taxing unit shall distribute part of the taxes received by it to the taxing unit for which it collects tax.  The distribution shall be made on the basis of the proportionate amount of ad valorem taxes levied, for the most recent fiscal year beginning July 1, by the city or county and by all the taxing units for which the city or county collects tax.  This distribution shall be made as soon as practicable after a city or county receives funds from the State under this section."
(k)  G.S. 105-277A(f) reads as rewritten:
"(f)	Source of Funds. –To pay for the distribution required by this section and the cost of making the 
		distribution, the Secretary shall draw from the Local Government Reimbursement and Tax Sharing Reserve an amount equal to the amount distributed and the cost of making the distribution."
(l)  G.S. 105-277.1A reads as rewritten:
"§ 105-277.1A. Property classified for taxation at reduced valuation; duties of tax collectors; reimbursement of localities for portion of tax lost.
(a)	On September 1, 1990, the tax collector of each county and the tax collector of each city shall furnish to the Secretary of Revenue a list containing the name and address of each person who has qualified in that year for the exemption provided in G.S. 105-277.1.  The list shall also contain for each name the total amount of property exempted, the tax rate the property is subject to, and the product obtained by multiplying those two numbers by each other.  The lists shall be accompanied by an affidavit attesting to the accuracy of the list, and shall all be on a form prescribed by the Secretary of Revenue.
(b)	In addition to the list required by subsection (a) of this section, the county or city may provide a supplemental list on December 1.
(c)	The Secretary of Revenue may, for cause, grant an extension for the submission of the list required by this section.
(d)	Before May 31, 1991, the Secretary of Revenue shall distribute to the county or city fifty percent (50%) of the total for the entire list of the product obtained by multiplying the tax exemption for each taxpayer times the applicable tax rate.  Each year thereafter, on or before May 31, the Secretary of Revenue shall pay to each county and city that was entitled to receive a distribution under this section in 1991 the amount it was entitled to receive in 1991.
(e)	Any funds received by any county or city pursuant to this section because the county or city was collecting taxes for another unit of government or special district shall be credited to the funds of that other unit or district in accordance with regulations issued by the Local Government Commission.
(f)	In order to pay for the reimbursement under this section and the cost to the Department of Revenue of administering the reimbursement, the Secretary of Revenue shall draw from the Local Government Reimbursement and Tax Sharing Reserve an amount equal to the reimbursement and the cost of administration."
(m)  This section becomes effective July 1, 1991.
Sec. 3.  Except as otherwise provided, this act becomes effective July 1, 1991.  This act becomes effective if and only if a subsequent act or acts become effective that raise sufficient revenue to balance the budget enacted in this act.