GENERAL ASSEMBLY OF NORTH CAROLINA

SESSION 1991

S	1 

SENATE BILL 901

Short Title:  Used Oil Disposal Tax.	(Public)
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Sponsors: Senators Speed; Tally and Plexico.
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Referred to:  Finance.
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May 13, 1991

A BILL TO BE ENTITLED
AN ACT TO IMPOSE A USED OIL DISPOSAL TAX ON THE SALE AND USE OF MOTOR OIL AND SIMILAR LUBRICANTS AND TO SPECIFY THE USE OF THE PROCEEDS OF THIS TAX.
The General Assembly of North Carolina enacts:
Section 1.  Chapter 105 of the General Statutes is amended by adding a new Article to read:
“ARTICLE 5B.
"Used Oil Disposal Tax.*
"§ 105-187.25.  Definitions.
The definitions in G.S. 105-164.3 apply to this Article, except that the term ‘sale' does not include lease or rental and, as used in this Article, oil includes oil which has been refined from crude oil or synthetic oil.
"§ 105-187.26.  Tax imposed.
A privilege tax is imposed on a retailer of motor oil or similar lubricants at the rate of four cents (4¢) per quart of new motor oil or similar lubricant sold at retail by the retailer.  An excise tax is imposed on new motor oil or similar lubricants purchased for storage, use, or consumption in this State.  This excise tax is at the rate of four cents (4¢) per quart of motor oil or similar lubricant.  These taxes are in addition to all other taxes.
"§ 105-187.27.  Administration.
The privilege tax this Article imposes on a retailer who sells new motor oil or similar lubricants at retail is an additional State sales tax and the excise tax this Article imposes on the storage, use, or consumption of new motor oil or similar lubricants in this State is an additional State use tax.  Except as otherwise provided in this Article, these taxes shall be collected and administered in the same manner as the State sales and use taxes imposed by Article 5 of this Chapter.  As under Article 5 of this Chapter, the additional State sales tax paid when new motor oil or a similar lubricant is sold is a credit against the additional State use tax imposed on the storage, use, or consumption of the same motor oil or similar lubricant.
"§ 105-187.28.  Exemptions.
The exemptions in G.S. 105-164.13 and the refunds allowed in G.S. 105-164.14 do not apply to the taxes imposed by this Article.
"§ 105-187.29.  Use of tax proceeds.
(a)	The proceeds of the tax levied in this Article may be used only as provided in this section.  The Secretary shall retain from the taxes collected under this Article the cost of collection as reimbursement to the Department of Revenue.  The Secretary shall distribute the remaining net proceeds collected under this Article in accordance with this section.
(b)	Each quarter, the Secretary shall credit seventy-three percent (73%) of the net tax proceeds to the Solid Waste Management Trust Fund, to be used as provided in G.S. 130A-309.73, and shall credit the remaining twenty-seven percent (27%) of the net tax proceeds to the General Fund.
(c)	The General Assembly shall annually appropriate from the General Fund an amount equal to twenty percent (20%) of the net tax proceeds collected during the preceding fiscal year to the Solid Waste Section, Solid Waste Management Division, Department of Environment, Health, and Natural Resources for salaries and necessary support for positions in the Solid Waste Section.  These positions shall be used to administer and implement the used oil program in the Solid Waste Section.  The General Assembly shall annually appropriate from the General Fund an amount equal to seven percent (7%) of the net tax proceeds collected during the preceding fiscal year to the Office of Waste Reduction, Department of Environment, Health, and Natural Resources for salaries and necessary support for positions in the Office of Waste Reduction.  These positions shall be used to administer and implement the used oil program in the Office of Waste Reduction."
Sec. 2.  G.S. 130A-309.12 reads as rewritten:
"§ 130A-309.12. Solid Waste Management Trust Fund.
(a)	The Solid Waste Management Trust Fund is created and is to be administered by the Department for the purposes of:
(1)	Funding activities of the Department to promote waste reduction and recycling including but not limited to public education programs and technical assistance to units of local government;
(2)	Funding research on the solid waste stream in North Carolina;
(3)	Funding activities related to the development of secondary materials markets;
(4)	Providing funding for demonstration projects as provided by this Part; 
(5)	Providing funding for research by The University of North Carolina and independent nonprofit colleges and universities within the State which are accredited by the Southern Association of Colleges and Schools as provided by this Part; and
(6)	Funding grants and incentives under the North Carolina Used Oil Disposal Act as provided in G.S. 130A-309.73.
(b)	The Solid Waste Management Trust Fund shall consist of:
(1)	Funds appropriated by the General Assembly;
(2)	Contributions and grants from public or private sources; 
(3)	Ten percent (10%) of the proceeds of the scrap tire disposal fee imposed pursuant to G.S. 130A-309.55 and G.S. 130A-309.56; and
(4)	Seventy-three percent (73%) of the net proceeds of the used oil disposal tax imposed under G.S. 105-187.26, to be used only as provided in G.S. 130A-309.73.
(c)	The Department shall report on a quarterly basis to the Joint Legislative Commission on Governmental Operations and to the Environmental Review Commission as to the condition of the Solid Waste Management Trust Fund and as to the use of all funds allocated from the Solid Waste Management Trust Fund.  Quarterly reports required under this subsection shall be made not later than 60 days after the last day of each calendar quarter beginning with the quarter ending 31 December 1989."
Sec. 3.  Article 9 of Chapter 130A of the General Statutes is amended by adding a new Part to read:
“Part 2C.  Used Oil Disposal Act.
"§ 130A-309.70.  Title.
This Part may be cited as the ‘North Carolina Used Oil Disposal Act.'
"§ 130A-309.71.  Findings; purpose.
(a)	The General Assembly finds that:
(1)	Used oil poses a threat to the public health and to the environment when improperly disposed.
(2)	A significant amount of used oil is improperly discharged into sewers, drainage systems, septic tanks, surface waters, groundwater, watercourses, marine waters, or landfills.
(3)	Used oil is a suitable material to recycle.
(4)	Used oil when mixed with hazardous, toxic, or other harmful substances is not suitable for recycling.
(5)	It is in the State's best interest to encourage efforts to collect and recycle used oil.
(b)	The purpose of this Part is to encourage the collection and recycling of used oil and to prohibit the improper handling, treatment, or disposal of used oil in order to protect the public health and the environment.
"§ 130A-309-72.  Definitions.
As used in this Part, ‘oil' includes oil which has been refined from crude oil or synthetic oil.
"§ 130A-309.73.  Use of used oil disposal tax proceeds.
(a)	Article 5B of Chapter 105 of the General Statutes imposes a tax on new motor oil or similar lubricants to provide funds for salaries and necessary support for positions in the Department's Solid Waste Section and the Office of Waste Reduction to administer and implement the provisions of this Part as provided in G.S. 105-187.29; and to support the grants programs as provided in subsection (b) of this section.
(b)	The Department shall use the funds credited to the Solid Waste Management Trust Fund under G.S. 105-187.29 only as follows:
(1)	For grants to businesses to encourage the voluntary establishment of public used oil collection centers and recycling programs in accordance with G.S. 130A-309.79;
(2)	For grants to units of local government to encourage the collection, reuse, and proper disposal of used oil in accordance with G.S. 130A-309.81;
(3)	For the public education program regarding used oil in accordance with G.S. 130A-309.75; and
(4)	For the incentives program for individuals in accordance with G.S. 130A-309.80.
(c)	On or before January 1,* 1992, the Department shall initiate rule making for any rules needed to implement those provisions of this Part not previously implemented and to implement the disbursement of funds from the Solid Waste Management Trust Fund as provided in this section."
Sec. 4.  G.S. 130A-309.15 through G.S. 130A-309.24 are recodified as G.S. 130A-309.74 through G.S. 130A-309.83 in Part 2C of Article 130A of the General Statutes, as enacted by Section 2 of this act.  The codifier shall amend all cross references contained in these recodified sections accordingly.
Sec. 5.  G.S. 130A-309.20(a), recodified as G.S. 130A-309.79(a) in Section 4 of this act, reads as rewritten:
"(a)	The Department shall develop a grants program for private businesses to encourage the voluntary establishment of public used oil collection centers and recycling programs and provide technical assistance to persons who organize such programs.  No grant may be made for any project unless the project is approved by the Department.”
Sec. 6.  G.S. 130A-309.21(a), recodified as G.S. 130A-309.80(a) in Section 4 of this act, reads as rewritten:
"(a)	The Department shall develop an incentives program for individuals who change their own oil to encourage them to return their used oil to a used oil collection center."
Sec. 7.  G.S. 130A-309.22(c), recodified as G.S. 130A-309.81(c) in Section 4 of this act, reads as rewritten:
"(	)."
Sec. 8.  This act becomes effective January 1, 1992, and applies to all new motor oil and similar lubricants sold on or after that date or brought into this State for storage, use, or consumption on or after that date.