GENERAL ASSEMBLY OF NORTH CAROLINA

SESSION 1993

H	3 

HOUSE BILL 83*
Committee Substitute Favorable 3/25/93
Third Edition Engrossed 3/31/93

Short Title:  Increase Scrap Tire Disposal Tax.	(Public)
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Sponsors:
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Referred to:  
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February 9, 1993

A BILL TO BE ENTITLED
AN ACT TO TEMPORARILY INCREASE THE SCRAP TIRE DISPOSAL TAX, TO PROVIDE FOR THE DISTRIBUTION OF THE ADDITIONAL TAX PROCEEDS, AND TO REVOKE THE GENERAL AUTHORITY OF A UNIT OF LOCAL GOVERNMENT OR A CONTRACTING PARTY TO IMPOSE A SEPARATE SCRAP TIRE DISPOSAL FEE.
The General Assembly of North Carolina enacts:
Section 1.  G.S. 105-187.16 reads as rewritten:
"§ 105-187.16.  Tax imposed.
(a)	Levy. – A privilege tax is imposed on a tire retailer at a percentage rate of the sales price of each new tire sold at retail by the retailer.  A privilege tax is imposed on a tire retailer and on a tire wholesale merchant at a percentage rate of the sales price of each new tire sold by the retailer or wholesale merchant to a wholesale merchant or retailer for placement on a vehicle offered for sale, lease, or rental by the retailer or wholesale merchant.  An excise tax is imposed on a new tire purchased for storage, use, or consumption in this State or for placement in this State on a vehicle offered for sale, lease, or rental.  This excise tax is a percentage rate of the cost price of the tire.  These taxes are in addition to all other taxes.
(b)	Rate. –  The percentage rate of the taxes imposed by subsection (a) is set by the following table; the rate is based on the bead diameter of the new tire sold or purchased:
Bead Diameter of Tire	Percentage Rate
Less than 20 inches	2%
At least 20 inches	1%."
Sec. 2.  G.S. 105-187.19 reads as rewritten:
"§ 105-187.19.  Use of tax proceeds.
The Secretary shall distribute the taxes collected under this Article, less the Department of Revenue's allowance for administrative expenses, in accordance with this section.  The Secretary may retain the Department's cost of collection, not to exceed two hundred twenty-five thousand dollars ($225,000) a year, as reimbursement to the Department.
Each quarter, the Secretary shall credit five percent (5%) of the net tax proceeds to the Solid Waste Management Trust Fund and shall credit twenty-seven percent (27%) of the net tax proceeds to the Scrap Tire Disposal Account.  The Secretary shall distribute the remaining sixty-eight percent (68%) of the net tax proceeds among the counties on a per capita basis according to the most recent annual population estimates certified to the Secretary by the State Planning Officer.
A county may use funds distributed to it under this section only as provided in G.S. 130A-309.54.  A county that receives funds under this section and that has an interlocal agreement with another unit of local government under which the other unit provides for the disposal of solid waste for the county must transfer the amount received under this section to that other unit.  A unit to which funds are transferred is subject to the same restrictions on use of the funds as the county."
Sec. 3.  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)	Five percent (5%) of the proceeds of the scrap tire disposal tax imposed under Article 5B of Chapter 105 of the General Statutes."
Sec. 4.  G.S. 130A-309.58(e) reads as rewritten:
"(e)	A county shall provide, directly or by contract with another unit of local government or private entity, at least one site for scrap tire disposal for that county.  The unit of local government or contracting party may not charge a disposal fee for the disposal of scrap tires unless the tires are new tires that are being disposed of by their manufacturer because they do not meet the manufacturer's standards for salable tires.  In this circumstance, the unit of local government or contracting party may charge a disposal fee that does not exceed the cost of disposing of the scrap tires."
Sec. 5.  G.S. 130A-309.61 reads as rewritten:
"§ 130A-309.61.  Effect on local ordinances.
This Part preempts any local ordinance regarding the disposal of scrap tires to the extent the local ordinance is inconsistent with this Part or the rules adopted pursuant to this Part.  "
Sec. 6.  Part 2B of Article 9 of Chapter 130A of the General Statutes is amended by adding a new section to read: 
"§ 130A-309.63.  Scrap Tire Disposal Account.
(a)	Creation. – The Scrap Tire Disposal Account is established within the Department.  The Account consists of revenue credited to the Account from the proceeds of the scrap tire disposal tax imposed by Article 5B of Chapter 105 of the General Statutes.  Interest and other investment income earned by the Account accrues to the General Fund as nontax revenue.
(b)	Use. – The Department may use revenue in the Account only as authorized by this subsection.  The Department may use up to twenty-five percent (25%) of the revenue in the Account to make grants to units of local government to assist them in disposing of scrap tires.  To administer the grants, the Department shall establish procedures for applying for a grant and the criteria for selecting among grant applicants.  The criteria shall include the financial ability of a unit to provide for scrap tire disposal, the severity of a unit's scrap tire disposal problem, and the effort made by a unit to provide for scrap tire disposal within the resources available to it.
A unit of local government is not eligible for a grant unless its costs for disposing of scrap tires for a six-month period preceding the date the unit files an application for a grant exceeded the amount the unit received during that period from the proceeds of the scrap tire tax under G.S. 105-187.19.  The Department shall determine the six-month period to be used in determining who is eligible for a grant.  A grant to a unit may not exceed the unit's unreimbursed cost for the six-month period.
The Department may use the remaining revenue in the Account only to clean up a tire collection site that the Department has determined is a nuisance.  The Department may use funds in the Account to clean up a nuisance tire collection site only if no other funds are available for that purpose.
(c)	Reports. – The Department shall make quarterly reports on the Scrap Tire Disposal Account to the Environmental Review Commission.  The report must show the beginning and ending balances in the Account for the reporting period, the amount credited to the Account during the quarter, and the amount of revenue used for grants and to clean up nuisance tire collection sites.  A quarterly report must be filed within 60 days after the end of a calendar quarter."
Sec. 7.  This act becomes effective July 1, 1993.  Sections 1 through 5 of this act expire July 1, 1995.  Section 6 of this act expires July 1, 1996.  The repeal of the additional tax imposed by Section 1 of this act does not affect the rights or liabilities of the State, a taxpayer, or another person that arose during the time the additional tax was in effect.  The first quarterly report required by G.S. 130A-309.63, as enacted by this act, is due within 60 days after the quarter that ends on September 30, 1993.