GENERAL ASSEMBLY OF NORTH CAROLINA

SESSION 1993

H	1 

HOUSE BILL 67*

Short Title:  Advance Disposal Tax on White Goods.	(Public)
─────────────────────────────────────── 
Sponsors: Representatives R. Thompson, Barnhill, Bowen, DeVane, Hightower; Hackney and H. Hunter.
─────────────────────────────────────── 
Referred to:  Finance.
─────────────────────────────────────── 

February 8, 1993

A BILL TO BE ENTITLED
AN ACT TO IMPOSE AN ADVANCE DISPOSAL TAX ON NEW WHITE GOODS, TO REQUIRE EACH COUNTY TO PROVIDE A DISPOSAL SITE FOR WHITE GOODS, AND TO PROVIDE FOR THE REMOVAL OF CHLOROFLUOROCARBONS FROM WHITE GOODS THAT CONTAIN CHLOROFLUOROCARBONS.
The General Assembly of North Carolina enacts:
Section 1.  G.S. 130A-290(a)(44) reads as rewritten:
"(44)	'White goods' includes inoperative and discarded refrigerators, ranges, water heaters, freezers, unit air conditioners, and other similar domestic and commercial large appliances."
Sec. 2. Chapter 105 of the General Statutes is amended by adding a new Article to read:
"ARTICLE 2E.
"Advance Disposal Tax on White Goods.
"§ 105-113.20.  Advance disposal tax on new white goods.
(a)	Excise Tax. – A tax is imposed on a new white good that is either manufactured in this State or sold in this State.  The tax is ten dollars ($10.00) for a new white good that contains chlorofluorocarbons and is five dollars ($5.00) for a new white good that does not contain chlorofluorocarbons.
(b)	Liability. – The manufacturer who makes new white goods subject to the tax imposed by this section is liable for the tax imposed by this section.  The wholesale dealer or retail dealer who first acquires or otherwise handles from a manufacturer a new white good subject to the tax imposed by this section is liable for the tax imposed by this section.  A wholesale dealer or retail dealer who brings into this State a new white good made outside the State is the first person to handle the new white good in this State.  A wholesale dealer or retail dealer who is the original consignee of a new white good that is made outside the State and is shipped into the State is the first person to handle the new white good in this State.
(c)	Monthly Report. – The taxes levied by this Article are payable when a report is required to be filed.  A report is due on a monthly basis.  A monthly report covers sales and other activities occurring in a calendar month and is due within 20 days after the end of the month covered by the report.  A report shall be filed on a form provided by the Secretary and shall contain the information required by the Secretary.
(d)	Definitions.  As used in this section, 'white goods' has the same meaning as set forth in G.S. 130A-290.
"§ 105-113.21.  Manufacturer, wholesale dealer, and retail dealer must obtain license.
A manufacturer of new white goods shall obtain for each place of business a continuing white goods license and shall pay a tax of twenty-five dollars ($25.00) for the license.  A wholesale dealer shall obtain for each place of business a continuing white goods 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 white goods license and shall pay a fee of ten dollars ($10.00) for the license.  A 'place of business' is a place where a manufacturer makes white goods or where a wholesale dealer or a retail dealer receives or stores non-tax-paid white goods.
"§ 105-113.22.  Use of tax proceeds.
The Secretary shall distribute the taxes collected under this Article, less the cost of collecting the taxes not to exceed seven-tenths of one percent (.7%) of the taxes collected, in accordance with this section.  The Secretary shall retain this cost as reimbursement to the Department of Revenue.  Each quarter, the Secretary shall credit ten percent (10%) of the net tax proceeds to the Solid Waste Management Trust Fund to be used in accordance with G.S. 130A-309.12 and shall distribute ninety percent (90%) of the net tax proceeds among the counties on a per capita basis according to the most recent annual population estimates certified to the Department by the State Planning Office.  A county may use funds distributed to it under this section only as provided in G.S. 130A-309.81."
Sec. 3.  Article 9 of Chapter 130A of the General Statutes is amended by adding a new Part to read:
"Part 2D.  Advance Disposal Tax on New White Goods.
"§ 130A-309.80.  Purpose.
The General Assembly finds that white goods are difficult to dispose of, and white goods that contain chlorofluorocarbons pose a danger to the environment.  It is in the best interest of the State to require that chlorofluorocarbons be removed prior to disposal of white goods that contain them.  The purpose of this Part is to provide for the environmentally safe removal of chlorofluorocarbons from white goods that contain chlorofluorocarbons and for the proper collection for recycling or other disposal of white goods.
"§ 130A-309.81.  Use of advance disposal tax proceeds.
A county may use tax proceeds collected pursuant to Article 2E of Chapter 105 of the General Statutes only for the proper disposal of white goods or for the removal of chlorofluorocarbons from white goods that contain chlorofluorocarbons.
"§ 130A-309.82.  Disposal of white goods; removal of chlorofluorocarbons.  
(a)	Each county is responsible for providing for the disposal of used white goods located within its boundaries in accordance with the provisions of this Part and any rules issued pursuant to this Part.
(b)	Each county is responsible for providing for the removal of chlorofluorocarbons from any disposed white goods that contain chlorofluorocarbons.
(c)	Units of local government may enter into joint ventures or other cooperative efforts with other units of local government for the purpose of disposing of used white goods.  Units of local government may enter into leases or other contractual arrangements with units of local government or private entities in order to dispose of white goods.
(d)	Each county is responsible for developing a description of procedures for the disposal of white goods.  These procedures shall be included in any solid waste management plan required by the Department under this Article.  Further, any revisions to the initial description of the disposal procedures for white goods shall be forwarded to the Department.
(e)	A county shall provide, directly or by contract with another unit of local government or private entity, at least one site for the collection and disposal of white goods for that county.
(f)	No person shall knowingly place or dispose of a used white good in a landfill, incinerator, or waste-to-energy facility.
	(g)  A person who sells new white goods or offers new white goods for sale at retail in this State shall post written notice.  This notice must be at least 8 1/2 inches by 11 inches in size and must state that State law requires each county to provide a disposal site for white goods and to accept used white goods of the type sold at that retail establishment and must state the location of the disposal site for that county.
(h)	The Department may assess a civil penalty of not more than fifty dollars ($50.00) per violation against any person who knowingly violates subsection (g) of this section.  Each day a person fails to post a required notice shall constitute a separate violation.
"§ 130A-309.83.  Penalties.
Any person who disposes of a white good in a manner that is inconsistent with this Part is guilty of littering pursuant to the provisions of G.S. 14-399 and subject to the criminal penalties set forth in that section.
"§ 130A-309.84.  Preemption.
This Part preempts any local ordinance regarding the disposal of white goods to the extent that any local ordinance is inconsistent with this Part or rules adopted pursuant to this Part.  A unit of local government may not charge any fees for the disposal of white goods."
Sec. 4.  G.S. 14-399(i)(4) reads as rewritten:
"(4)	'Litter' means any garbage, rubbish, trash, refuse, can, bottle, box, container, wrapper, paper, paper product, tire, white good as defined in G.S. 130A-290, mechanical equipment or part, building or construction material, tool, machinery, wood, motor vehicle or motor vehicle part, vessel, aircraft, farm machinery or equipment, sludge from a waste treatment facility, water supply treatment plant, or air pollution control facility, dead animal, or discarded material in any form resulting from domestic, industrial, commercial, mining, agricultural, or governmental operations.  'Litter' does not include political pamphlets, handbills, religious tracts, newspapers, and other such printed materials the unsolicited distribution of which is protected by the Constitution of the United States or the Constitution of North Carolina."
¨	Sec 5.  G.S. 130A-309.12(b) reads as rewritten:
"(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 tax imposed under Article 5B of Chapter 105 of the General Statutes.
(4)	Ten percent (10%) of the proceeds of the advance disposal tax on new white goods imposed under Article 2E of Chapter 105 of the General Statutes."
Sec. 6.  This act becomes effective January 1, 1994.