GENERAL ASSEMBLY OF NORTH CAROLINA

SESSION 1993

S	1 

SENATE BILL 661

Short Title:  Privilege License/Entertainment Taxes.	(Public)
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Sponsors: Senators Kaplan, Winner of Buncombe; and Smith.
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Referred to:  Finance.
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March 31, 1993

A BILL TO BE ENTITLED
AN ACT TO REPEAL THE STATE PRIVILEGE LICENSE TAX ON MOST BUSINESSES SUBJECT TO SALES TAX AND ON OTHER TRADES AND BUSINESSES AND TO INCREASE THE TAX ON ENTERTAINMENT FROM THREE PERCENT TO FOUR PERCENT.
The General Assembly of North Carolina enacts:
Section 1.  The following sections of Article 2 of Chapter 105 of the General Statutes are repealed:
G.S. 105-36	Amusements – Manufacturing, selling, leasing, or distributing moving picture films.
G.S. 105-36.1	Amusements – Outdoor theatres.
G.S. 105-37	Amusements – Moving pictures – Admission.
G.S. 105-41	Attorneys-at-law and other professionals.
G.S. 105-42	Private detectives and investigators.
G.S. 105-45	Collecting agencies.
G.S. 105-46	Undertakers and retail dealers in coffins.
G.S. 105-51.1	Alarm systems.
G.S. 105-53	Peddlers, itinerant merchants, and specialty market operators.
G.S. 105-55	Installing elevators and automatic sprinkler systems.
G.S. 105-58	Fortune tellers, palmists, etc.
G.S. 105-60	Day-care facilities
G.S. 105-61	Hotels, motels, tourist courts and tourist homes.
G.S. 105-62	Restaurants.
G.S. 105-65	Music machines.
G.S. 105-65.1	Merchandising dispensers and weighing machines.
G.S. 105-70	Packinghouses.
G.S. 105-74	Pressing clubs, dry cleaning plants, and hat blockers.
G.S. 105-77	Tobacco warehouses.
G.S. 105-80	Firearms dealers and dealers in other weapons.
G.S. 105-85	Laundries.
G.S. 105-86	Outdoor advertising.
G.S. 105-89.1	Motorcycle dealers.
G.S. 105-90	Emigrant and employment agents.
G.S. 105-91	Plumbers, heating contractors, and electricians.
G.S. 105-97	Manufacturers of ice cream.
G.S. 105-98	Branch or chain stores.
G.S. 105-102.1	Certain cooperative associations.
G.S. 105-102.5	General business license.
Sec. 2.  G.S. 105-33 reads as rewritten:
"§ 105-33.  General provisions.
(a)	Nature of Taxes. – Taxes in this Article are State license taxes for the privilege of carrying on the business, exercising the privilege, or doing the act named.  Obtaining a license required by this Article does not of itself authorize the practice of a profession, business, or trade for which a State qualification license is required.
(b)	License for Each Location. – If the business made taxable or the privilege to be exercised under this Article is carried on at two or more separate places, a separate State license for each place is required. For the purpose of this Article, a specialty market is not considered a specialty market vendor's place of business.
(c)	Tax Period. – Every State license issued under this Article shall be for 12 months, shall expire on the thirtieth day of June of each year, and shall be for the full amount of tax prescribed.  However, if the tax is levied on an annual basis and the licensee begins the business or exercises the privilege after the first day of January and prior to the thirtieth day of June of each year, then the licensee is required to pay one half of the tax prescribed other than the tax prescribed to be computed and levied upon a gross receipts or percentage basis for conducting the business or exercising the privilege through the thirtieth day of June, next following.  Every county license and municipality license issued under this Article or schedule shall be for 12 months, and shall expire on the thirty-first day of May or thirtieth day of June of each year as the governing body of the county or municipality may determine.  However, if the licensee begins the business or exercises the privilege after the expiration of seven months of the current license year of the municipality, then the licensee is required to pay one half of the tax prescribed other than the tax prescribed to be computed upon a gross receipts or percentage basis.
(d)	Transfer of License. – The State license issued under G.S. 105-54 constitutes a personal privilege to conduct the profession or business named in the State license, is not transferable to any other person, and limits the person named in the license to conducting the profession or business and exercising the privilege named in the State license to the county, municipality, and location specified in the State license, unless otherwise provided in this Article.  Any other license issued for a tax year for the conduct of a business at a specified location shall upon a sale or transfer of the business be a sufficient license for the succeeding purchaser for the conduct of the business specified at that location for the balance of the tax year.  If a person licensed under this Article moves the business for which a license has been paid to another location, a new license may be issued to the licensee at a new location for the balance of the license year, upon surrender of the original license for cancellation and the payment of a fee of five dollars ($5.00) for each license certificate reissued.
(e)	Repealed by Session Laws 1989, c. 584, s. 1.
(f)	When Taxes Due. – All State taxes imposed by this Article shall be paid to the Secretary on or before the first day of July of each year, and after that date shall be deemed delinquent, and subject to all the remedies available and the penalties imposed for the payment of delinquent State license and privilege taxes.  If a person begins a business or the exercise of a privilege requiring a license under this Article during the tax year, the person must apply for and obtain the required State license in advance, before beginning the business or exercising the privilege.  Failure to obtain the license in advance constitutes a delinquent payment of the license tax due.
	(h)	Effect of Transfer of Business. – It shall be the duty of a grantee, transferee, or purchaser of any business or property subject to the State license taxes imposed in this Article to make diligent inquiry as to whether the State license tax has been paid, but when the business or property has been granted, sold, transferred, or conveyed to an innocent purchaser for value and without notice that the vendor owed or is liable for any of the State license taxes imposed under this Article, the property, while in the possession of such innocent purchaser, is not subject to a lien for the State license taxes. 
(i)	Collection of Local Taxes. – The tax collector of a county or municipality shall issue licenses required under this Article by the governing body of the county or municipality and shall collect the taxes due for these licenses.
(j)	Penalty for False Application. –Willfully making a false statement in an application for a license under this Article is a misdemeanor punishable by a fine of not less than the amount of tax due, imprisonment, or both.
	(k)  Repealed by Session Laws 1987, c. 190."
Sec. 3.  G.S. 105-33.1 reads as rewritten:
"§ 105-33.1.  Definitions.
The following definitions apply in this Article:
	(2)	Municipality. – A municipal corporation organized under the laws of this State.
(3)	Person. – An individual, a firm, a partnership, an association, a corporation, or another organization or group acting as a unit.
(4)	Secretary. – The Secretary of Revenue."
Sec. 4.  G.S. 105-37.1 reads as rewritten:
"§ 105-37.1.  Amusements – Forms of amusement not otherwise taxed.
(a)	Every person engaged in the business of giving, offering, or managing any form of entertainment or amusement not otherwise taxed or specifically exempted in this Article, for which an admission is charged, shall pay an annual license tax of fifty dollars ($50.00) for each room, hall, tent, or other place where the admission is charged.
In addition to the license tax levied above, the person shall pay an additional tax upon the gross receipts of the business at the rate of four percent (4%).  Reports shall be made to the Secretary in the form prescribed by the Secretary within the first 10 days of each month covering all taxable gross receipts for the previous month, and the additional tax shall be paid monthly at the time the reports are made.  The annual license tax shall be applied as a credit upon or advance payment of the gross receipts tax.
Every person giving, offering, or managing any dance or athletic contest of any kind, except high school and elementary school athletic contests, for which an admission fee in excess of fifty cents (50¢) is charged, shall pay an annual license tax of fifty dollars ($50.00) for each location where the charges are made, and, in addition, a tax upon the gross receipts derived from admission charges at the rate of four percent (4%).  The additional tax upon gross receipts shall be levied and collected as prescribed by the Secretary.  No tax shall be levied on admission fees for high school and elementary school contests.
Dances and other amusements actually promoted and managed by civic organizations and private and public secondary schools, are not subject to the license tax imposed by this section and the first one thousand dollars ($1,000) of gross receipts derived from these events shall be exempt from the gross receipts tax when the entire proceeds of the dances or other amusements are used exclusively for the school or civic and charitable purposes of the organizations and not to defray the expenses of the organization conducting the dance or amusement.  The mere sponsorship of dance or other amusement by such a school, civic, or fraternal organization does not exempt the dance or other amusement as provided in this paragraph; the exemption applies only when the dance or amusement is actually managed and conducted by the school, civic, or fraternal organization and the proceeds are used as provided in this paragraph.
Dances and other amusements promoted and managed by a qualifying corporation that operates a center for the performing and visual arts are exempt from the license tax and the gross receipts tax imposed under this section if the dance or other amusement is held at the center.  'Qualifying corporation' means a corporation that is exempt from income tax under G.S. 105-130.11(a)(3).  'Center for the performing and visual arts' means a facility, having a fixed location, that provides space for dramatic performances, studios, classrooms and similar accommodations to organized arts groups and individual artists.  This exemption shall not apply to athletic events.
The license and gross receipts taxes imposed by this section do not apply to a person who is exempt from income tax under Article 4 of this Chapter and is engaged in the business of operating a teen center.  A 'teen center' is a fixed facility whose primary purpose is to provide recreational activities, dramatic performances, dances, and other amusements exclusively for teenagers.
(b)	Counties shall not levy any license tax on the business taxed under this section, but municipalities may levy a license tax not in excess of one half the base tax levied herein.
(c)	No tax shall be collected pursuant to this section with respect to entertainments or amusements offered or given on the Cherokee Indian reservation when the person giving, offering, or managing the entertainment or amusement is authorized to do business on the reservation and pays the tribal gross receipts levy to the tribal council.
(d)	It is not the purpose of this Article to discourage agricultural fairs in the State, and to further this cause, no carnival company taxable under this section may play a 'still date' in any county where there is a regularly advertised agricultural fair, 30 days prior to the dates of the fair.  This subsection does not restrict the date on which a fair or tobacco festival may be held if (i) it is held by a veteran's organization or post chartered by Congress or organized and operated on a statewide or nationwide basis and (ii) the organization or post has held the fair or festival annually since before July 1, 1988."
Sec. 5.  G.S. 105-38 reads as rewritten:
"§ 105-38.  Amusements – Circuses, menageries, wild west, dog and/or pony shows, etc.
(a)	Every person engaged in the business of exhibiting performances, such as a circus, menagerie, wild west show, dog and/or pony show, or any other show, exhibition or performance similar thereto, not taxed in other sections of this Article, shall apply for and obtain a State license from the Secretary for the privilege of engaging in the business, and pay for the license a tax of fifty dollars ($50.00) for each day or part of a day for each place in the State where exhibitions or performances are to be given.
(b)	Every person by whom any show or exhibition taxed under this section is owned or controlled shall file with the Secretary, not less than five days before entering this State for the purpose of the exhibitions or performances therein, a statement, under oath, setting out in detail such information as may be required by the Secretary covering the places in the State where exhibitions or performances are to be given, the character of the exhibitions, and such other and further information as may be required. Upon receipt of such statement, the Secretary shall fix and determine the amount of State license tax with which the person is chargeable, shall endorse this finding upon the statement, and shall transmit a copy of the statement and findings to the person to be charged and to the sheriff or tax collector of each county in which exhibitions or performances are to be given, with full and particular instructions as to the State license tax to be paid. Before giving any of the exhibitions or performances provided for in the statement, the person making the statement shall pay the tax so fixed and determined. If one or more of the exhibitions or performances included in the statement and for which the tax has been paid is cancelled, the Secretary may, upon proper application by the taxpayer, refund the tax for the cancelled exhibitions or performances. 
(c)	The sheriff of each county in which the exhibitions or performances are advertised to be exhibited shall promptly communicate this information to the Secretary. 
	(d) Every person by whom an exhibition or performance described in this section is given in or within five miles of a county or municipality in which is held an annual agricultural fair, during the week of the annual agricultural fair, shall pay a State license of one thousand dollars ($1,000) for each exhibition or performance in addition to the license tax first levied in this section, to be assessed and collected by the Secretary.
(e)	The provisions of this section, or any other section of this Article, do not allow without the payment of the tax imposed in this section, any exhibition or performance described in this section for charitable, benevolent, educational, or any other purpose whatsoever, by any person, firm, or corporation who is engaged in giving these exhibitions or performances, no matter what terms of contract may be entered into or under what auspices such exhibitions or performances are given. 
(f)	Upon all performances taxable under this section there is levied, in addition to the license tax levied in this section, a tax upon the gross receipts of such business at the rate of four percent (4%).  The license tax shall be applied as a credit upon or advance payment of the gross receipts tax.  
	(h)	Counties and municipalities may levy a license tax on the business taxed under this section not in excess of one-half of the license tax levied by the State, but shall not levy a parade tax."
Sec. 6.  G.S. 105-50 reads as rewritten:
"§ 105-50.  Pawnbrokers.
(a)	Every person engaged in the business of lending or advancing money or other things of value for a profit, and taking as a pledge for the loan specific articles of personal property, to be forfeited if payment is not made within a definite time, is considered a pawnbroker, and shall pay for the privilege of transacting the business an annual license tax of two hundred seventy-five dollars ($275.00).
		(d)	Counties and municipalities may levy a license tax on the business taxed under this section not in excess of that levied by the State."
Sec. 7.  G.S. 105-54 reads as rewritten:
"§ 105-54.  Contractors and construction companies.
(a)	Every person who, for a fixed price, commission, fee, or wage, offers or bids to construct within the State of North Carolina any building, highway, street, sidewalk, bridge, culvert, sewer or water system, drainage or dredging system, railway, reservoir or dam, hydraulic or power plant, transmission line, tower, dock, wharf, excavation, grading or other improvement or structure, or any part thereof, the cost of which exceeds the sum of ten thousand dollars ($10,000), shall apply for and obtain from the Secretary an annual statewide license, and shall pay for such license a tax of one hundred dollars ($100.00) at the time of or prior to offering or submitting any bid on any of the above enumerated projects.
(b)	In addition to the tax levied in subsection (a) of this section, every person who, for a fixed price, commission, fee, or wage, undertakes or executes a contract for the construction, or who superintends the construction of any of the above enumerated projects, shall, before or at the time of entering into the project or contract apply for and procure from the Secretary a statewide license, and shall pay for such license the following tax:
When the total contract price or estimated cost of such project is over:
	$  5,000	and not more than	$  50,000	$  50.00
	50,000	and not more than	100,000	125.00
	100,000	and not more than	250,000	175.00
	250,000	and not more than	500,000	300.00
	500,000	and not more than	750,000	400.00
	750,000	and not more than	1,000,000	500.00
	1,000,000	625.00
(c)	The application for license under subsection (b) of this section shall be made to the Secretary and shall be accompanied by the affidavit of the applicant, stating the contract price, if known, and if the contract price is not known, the applicant's estimate of the entire cost of the improvement or structure.  If the applicant proposes to construct only a part of the improvement or structures, the affidavit shall state the contract price, if known, or the applicant's estimated cost of the part of the project the applicant proposes to superintend or construct.
If the construction of any of the above-mentioned improvements or structures is divided and let under two or more contracts to the same person, the several contracts shall be considered as one contract for the purpose of this Article, and the Secretary shall collect the license tax from that person as if only one contract had been entered into for the entire improvement or structure.
(d)	If a person has procured a license in one of the lower classes provided for in subsection (b) of this section, and constructs or undertakes to construct or to superintend any of the above-mentioned improvements or structures or parts thereof, the completed cost of which is greater than that covered by the license already secured, the person shall apply to the Secretary for a license to cover the total cost, surrender the license certificate previously issued, and pay the difference between the cost of the license surrendered and the price of the license applied for.  The Secretary shall then issue a new license, noting on the certificate that it was issued on the surrender of the former license and payment of the additional tax.
(e)	No employee or subcontractor of a person licensed under this section is required to pay the license tax provided for in this section while employed by that person.
(f)	In the event joint bidders submit one joint bid for the construction of any of the projects enumerated under subsection (a) of this section, each of the joint bidders shall procure in its own name a bidder's license under subsection (a) of this section. If a joint bidder has already procured a bidder's license for the current year, the bidder will not be required to procure an additional bidder's license by reason of joining in a joint bid. If a contract is awarded to joint bidders, a new project license shall be procured under subsection (b) of this section in the full amount of the contract price or estimated cost of the project, in the same name or names under which the contract is awarded.  This new license will be valid for the remainder of the license tax year only for the identical combination of joint bidders in other joint projects.
For the purpose of this subsection, 'joint bidders' means two or more separate entities consisting of either individuals, partnerships, or corporations who combine for the purpose of submitting one joint bid for the construction of a particular project, or who jointly enter into a contract for the construction of a particular project.
(g)	Counties shall not levy any license tax on the business taxed under this section, but municipalities may levy an annual contractor's license tax not in excess of ten dollars ($10.00) when the license provided for under this section has been paid.  This subsection does not prevent the collection of building, electrical, and plumbing inspection charges by municipalities to cover the actual cost of the inspection.
	."
Sec. 8.  G.S. 105-66.1 reads as rewritten:
"§ 105-66.1. Electronic video games.
(a)	Every person engaged in the business of owning or operating machines that play electronic video games when a coin or other thing of value is deposited in the machine shall obtain from the Secretary a statewide license for each machine owned or operated and shall pay a tax of fifteen dollars ($15.00) for each license. An application for a license shall include the serial number of the machine operated. The licensee shall attach the license to the machine in a conspicuous place. No person may allow an unlicensed video game machine in a place of business occupied by that person. Licenses issued under this section are not transferable from one machine to another. The Secretary may seize any machine not licensed in accordance with this section and may hold the machine until it is duly licensed. All machines licensed under this section shall have a counter that records the number of games played or the amount of money deposited in the machine, or both.
(b)	For the purpose of this section, a person is 'engaged in the business of owning an electronic video game machine' if the person owns the machine and locates it in the person's own place of business.  For the purpose of this section, a person is 'engaged in the business of operating an electronic video game machine' if the person locates, exhibits, displays, or permits to be exhibited or displayed an electronic video game machine in a place of business other than the person's own.
(c)	Counties and municipalities may levy a tax, not to exceed five dollars ($5.00) per machine, on the business taxed under this section."
Sec. 9.  G.S. 105-72 reads as rewritten:
"§ 105-72. Persons selling certain oils.
(a)	Except as provided in subsection (f) of this section, every person engaged in the business of selling illuminating oil or greases, or benzine, naphtha, gasoline, or other products of like kind shall apply for and procure from the Secretary a State license for the privilege of conducting such business, and shall pay for the license a tax of two dollars and fifty cents ($2.50).
(b)	Except as provided in subsection (f) of this section, in addition to the tax levied under subsection (a) of this section, the person shall pay the Secretary on or before the first day of July of each year, an annual additional license tax equal to five percent (5%) of the total gross sales for the preceding year or part of the year that the business is conducted or the privilege exercised, when the total gross sales of the commodities exceed five thousand dollars ($5,000), or pro rata for a part of the year.
(c)	The amount of the total gross sales shall be returned to the Secretary on or before the date specified in subsection (b) of this section by the person, verified by the oath of the person making the return, upon such forms and in such detail as may be required by the Secretary.
(d)	Counties shall not levy any license tax on the business taxed under this section; but municipalities in which there is located an agency, station, or warehouse for the distribution or sale of the commodities enumerated in this section may levy the following license tax:
In incorporated towns and cities of less than 10,000 population ..........................................................$25.00
In cities and towns of 10,000 population and over ...........50.00
(e)	Any person subject to this license tax, and doing business in this State without having paid the license tax, shall be fined one thousand dollars ($1,000), and in addition thereto double the tax imposed by this section.
(f)	The State tax levied in this section does not apply to a person who pays the inspection fees levied in Article 3 of Chapter 119 of the General Statutes."
Sec. 10.  G.S. 105-75.1 reads as rewritten:
"§ 105-75.1. Municipal license tax on barbershops and beauty salons.
Municipalities may levy a license tax on every person engaged in the business of conducting a barbershop, beauty salon, or other shop of like kind for the privilege of conducting the business at a rate not to exceed the following:
For each barber, manicurist, cosmetologist, beautician, or other operator employed in the barbershop or beauty shop or parlor – $2.50."
Sec. 11.  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 the instruments, a lien is reserved or taken upon personal property located in this State to secure the payment of the obligations, shall apply for and obtain from the Secretary a State license for the privilege of engaging in the business or for the purchasing of the obligations in this State, and shall pay for the 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 and municipalities shall not levy any license tax on the business taxed under this section."
Sec. 12.  G.S. 105-88 reads as rewritten:
"§ 105-88.  Loan agencies or brokers.
(a)	Every person engaged in the regular business of making loans or lending money, accepting liens on, or contracts of assignments of, salaries or wages, or any part thereof, or other security or evidence of debt for repayment of the loans in installment payment or otherwise, and maintaining in connection with the business any office or other located or established place for the conduct, negotiation, or transaction of the business, or advertising or soliciting the business in any manner whatsoever, is considered a loan agency, and shall apply for and procure from the Secretary a State license for the privilege of transacting or negotiating the business at each office or place so maintained, and shall pay for the license a tax of seven hundred fifty dollars ($750.00).
(b)	Nothing in this section shall be construed to apply to banks, industrial banks, trust companies, building and loan associations, or cooperative credit unions, nor shall it apply to the business of negotiating loans on real estate, nor to pawnbrokers lending or advancing money on specific articles of personal property, nor to insurance premium finance companies licensed under Article 35 of Chapter 58 of the General Statutes. It shall apply to those persons or concerns operating what are commonly known as loan companies or finance companies and whose business is as hereinbefore described, and those persons pursuing the business of lending money and taking as security for the payment of the loan and interest an assignment of wages or an assignment of wages with power of attorney to collect the wages, or other order or chattel mortgage or bill of sale upon household or kitchen furniture.
No real estate mortgage broker shall be required to obtain a privilege license under this section merely because the broker does any of the following:
(1)	Advances the broker's own funds and takes a security interest in real estate to secure the advances when, at the time of the advance of these funds, the broker has already made arrangements with others for the sale or discount of the obligation at a later date and does so sell or discount the obligation within the period specified in the arrangement or extensions of the period.
(2)	Advances the broker's own funds and takes a security interest in real estate to secure the advances when, at the time of the advance of the funds, the broker intends to sell the obligation to others at a later date and does, within 12 months after the date of initial advance, make arrangements with others for the sale of the obligation and does sell the obligation within the period specified in the arrangement or extensions of the period.
(3)	Advances the broker's own funds in temporary financing directly involved in the production of permanent-type loans for sale to others.
(c)	At the time of making a loan to which this section applies, the lender shall give to the borrower in writing in convenient form a statement showing the amount received by the borrower, the amount to be paid back by the borrower, the time in which the amount is to be paid, and the rate of interest and discount agreed upon.
(d)	Any person who fails, refuses, or neglects to pay the tax levied in this section is guilty of a misdemeanor, and in addition to double the tax due shall be fined not less than two hundred fifty dollars ($250.00), imprisoned, or both in the discretion of the court.  A loan to which this section applies is not collectible at law in the courts of this State if the person making the loan has failed to pay the tax levied in this section or has otherwise failed to comply with the provisions of this section.
(e)	Counties and municipalities may levy a license tax on the business taxed under this section not in excess of one hundred dollars ($100.00)."
Sec. 13.  G.S. 105-89 reads as rewritten:
"§ 105-89.  Automobiles, wholesale supply dealers, and service stations.
(a)	Automotive Service Stations. –
(1)	Every person engaged in the business of servicing, storing, painting, repairing, welding, or upholstering motor vehicles, trailers, or semitrailers, or engaged in the business of retail selling and/or delivering of any tires, tools, batteries, electrical equipment, automotive accessories, including radios designed for exclusive use in automobiles, or supplies, motor fuels and/or lubricants, or any of such commodities, in this State, shall apply for and obtain from the Secretary a State license for the privilege of engaging in such business in this State, and shall pay for such license an annual tax of fifty dollars ($50.00) for each location where such business is carried on.
(2),	(3) Repealed by Session Laws 1985 (Reg. Sess., 1986), c. 985, s. 1.
(4)	No additional license tax under this subsection shall be levied upon or collected from any employee, agent, or sales representative whose employer or principal has paid the tax for each location levied in this subsection.
	(6)	Counties and municipalities may levy a license tax upon each place of business located therein under this subsection not in excess of one-fourth of that levied by the State.
	(b)	Automotive Equipment and Supply Dealers at Wholesale. –
(1)	Every person engaged in the business of buying, selling, distributing, exchanging, and/or delivering automotive accessories, including radios designed for exclusive use in automobiles, parts, tires, tools, batteries, and/or other automotive equipment or supplies or any of such commodities at wholesale shall apply for and obtain from the Secretary a State license for the privilege of engaging in such business in this State, and shall pay for such license an annual tax of seventy-five dollars ($75.00) for each location where such business is carried on.
		Any person engaged in the business enumerated in this section and having no located place of business, but selling to retail dealers by use of some form of vehicle, shall obtain from the Secretary a statewide license for the privilege of engaging in such business in this State, and shall pay for such license an annual tax for each vehicle used in carrying on such business fifty dollars ($50.00).
(2)	For the purpose of this section, the word 'wholesale' applies to manufacturers, jobbers, and others who sell to retail dealers, but not to manufacturers of batteries.
(3)	No additional license tax under this subsection shall be levied upon or collected from any employee, agent, or sales representative whose employer or principal has paid the tax for each location levied in this subsection.
(4)	Counties and municipalities may levy a license tax on each place of business located therein, taxed under this subsection, not in excess of one-half of that levied by the State.
(5)	A person who pays the tax levied in this subsection is not required to pay any additional tax under subsection (a) of this section.
	(c)	Motor Vehicle Dealers. –
(1)	Every person engaged in the business of buying, selling, distributing, servicing, storing and/or exchanging motor vehicles, trailers, semitrailers, tires, tools, batteries, electrical equipment, lubricants, and/or automotive equipment, including radios designed for exclusive use in automobiles, and supplies in this State shall apply for and obtain from the Secretary a State license for the privilege of engaging in such business in this State, and shall pay for such license an annual tax of one hundred dollars ($100.00) for each location where such business is carried on.
	   A person who deals exclusively in secondhand or used motor vehicles is liable for the tax unless the business is of a seasonal, temporary, transient, or itinerant nature, in which event the tax shall be three hundred dollars ($300.00) for each location where the business is carried on.
(2)	Any person who deals exclusively in motor fuels and lubricants, and has paid the license tax levied under subsection (a) of this section, is not subject to any license tax under subsections (b) and (c) of this section. A person licensed under this subsection is not required to be licensed under subsections (a) or (b) of this section.
(3)	Exemptions.  – The license tax levied in this subsection does not apply to any of the following: 
a.	An employee or sales representative whose employer had paid the tax levied in this subsection.
b.	A dealer in semitrailers weighing not more than five hundred pounds and carrying not more than one-thousand-pound load, and to be towed by passenger cars.
c.	A dealer in four-wheel, farm-type wagons equipped with rubber tires and designed to be pulled or towed by passenger cars or farm tractors.
(4)	Premises on which cars are stored or sold when owned or operated by a licensed car dealer under the same name shall not be deemed as a separate place of business when conducted within the corporate limits of any city or town in which such car business is conducted.
(5)	Counties and municipalities may levy a license tax on each place of business located therein, taxed under this subsection, not in excess of one-fourth of that levied by the State. However, if the business is of a seasonal, temporary, transient, or itinerant nature, counties, cities, and towns may levy a tax of three hundred dollars ($300.00) for each location where such business is carried on.
	."
Sec. 14.  G.S. 105-99 reads as rewritten:
"§ 105-99. Wholesale distributors of motor fuels.
Every person engaged in the business of distributing or selling at wholesale any motor fuels in this State shall apply to the Secretary for an additional annual license to engage in such business, and shall pay for such privilege an additional annual license tax determined and measured by the number of pumps owned or leased by the distributor or wholesaler through which such motor fuels are sold, at retail, according to the following schedule:
For the first 50 pumps	$ 2.00 per pump
For 51 additional pumps and not more
than 100 pumps	4.00 per pump
For 101 additional pumps and not more
than 200 pumps	5.00 per pump
For 201 additional pumps and not more
than 300 pumps	6.00 per pump
For 301 additional pumps and not more
than 400 pumps	7.00 per pump
For 401 additional pumps and not more
than 500 pumps	8.00 per pump
For 501 additional pumps and not more
than 600 pumps	9.00 per pump
For all over 600 pumps	10.00 per pump
In computing the tax, the number of pumps owned or leased by a distributor or wholesaler is considered the number of dispensing nozzles from which motor fuel can be dispensed simultaneously.
Any contract or agreement, oral or written, express or implied by the terms or the effects of which the tax herein imposed shall be passed on directly or indirectly to any person, firm, or corporation not engaged in the business hereby taxed is hereby declared to be against the public policy of this State and null and void, and any person, firm, or corporation negotiating such an agreement, or receiving the benefits thereof, shall be guilty of a misdemeanor and fined or imprisoned in the discretion of the court.
The tax herein imposed shall be in addition to all other taxes imposed by this Chapter or under any other laws.
Counties and municipalities shall not levy any tax by reason of the additional tax imposed by this section, but this section shall in no way affect the right given to counties and municipalities to levy taxes under G.S. 105-89.
."
Sec. 15.  G.S. 105-102.3 reads as rewritten:
"§ 105-102.3. Banks.
There is imposed upon every bank or banking association, including each national banking association, that is operating in this State as a commercial bank, an industrial bank, a savings bank created other than under Chapter 54B of the General Statutes or the Home Owners' Loan Act of 1933 (12 U.S.C. §§ 1461-68), a trust company, or any combination of such facilities or services, and whether such bank or banking association, hereinafter to be referred to as a bank or banks, is organized, under the laws of the United States or the laws of North Carolina, in the corporate form or in some other form of business organization, an annual privilege tax in the amount of thirty dollars ($30.00) for each one million dollars ($1,000,000) or fractional part thereof of total assets held as hereinafter provided. The assets upon which the tax is levied shall be determined by averaging the total assets shown in the four quarterly call reports of condition (consolidating domestic subsidiaries) for the preceding calendar year as required by bank regulatory authorities; provided, however, where a new bank commences operations within the State there shall be levied and paid an annual privilege tax of one hundred dollars ($100.00) until the bank has made four quarterly call reports of condition (consolidating domestic subsidiaries) for a single calendar year; provided further, however, where a bank operates an international banking facility, as defined in G.S. 105-130.5(b)(13), the assets upon which the tax is levied shall be reduced by the average amount for the taxable year of all assets of the international banking facility which are employed outside the United States, as computed pursuant to G.S. 105-130.5(b)(13)c. The tax levied in this section shall be for the privilege of carrying on the businesses herein defined on a statewide basis regardless of the number of places or locations of business within the State.  Counties and municipalities shall not levy a license or privilege tax on the businesses taxed under this section, nor on the business of an international banking facility as defined in subsection (b)(13) of G.S. 105-130.5."
Sec. 16.  G.S. 105-102.6 reads as rewritten:
"§ 105-102.6.  Producers of newsprint publications.
(a)	Purpose. – The purpose of this section is to provide an incentive for the use of recycled newsprint.
(b)	Definitions. – The following definitions apply in this section:
(1)	Net tonnage of newsprint consumed. – The weight in metric tons of all newsprint acquired by a producer, less the weight in metric tons of any acquired newsprint the producer diverts from solid waste.
(2)	Newsprint. – Uncoated paper, whether supercalendered or machine finished, made primarily from mechanical wood pulp combined with some chemical wood pulp, weighing between 24.5 and 35 pounds for 500 sheets of paper two feet by three feet in size, and having a brightness of less than 60.
(3)	Postconsumer waste paper. – Paper products, generated by a business or consumer, that have served their intended end uses and have been separated or diverted from solid waste.
(4)	Producer. – A person engaged in the business of producing publications printed on newsprint who acquires and uses newsprint for this business.
(5)	Recycled content percentage. – The percentage by weight of the total net tonnage of newsprint consumed by the producer that is postconsumer waste paper.
(c)	Minimum Recycled Content Percentage. – The recycled content percentage of newsprint consumed by a producer shall equal or exceed the following minimum recycled content percentages:
During 1993, fifteen percent (15%).
During 1994, twenty percent (20%).
During 1995, twenty-five percent (25%).
During 1996, thirty percent (30%).
During 1997, thirty-five percent (35%).
After 1997, forty percent (40%).
(d)	Tax. – Every producer shall apply for and obtain from the Secretary a newsprint producer tax reporting number. In addition, each producer whose recycled content percentage for a calendar quarter is less than the applicable minimum recycled content percentage provided in subsection (c) for a calendar quarter shall, within 10 days after the last day of the quarter, report to the Secretary the amount in metric tons by which (i) the applicable minimum recycled content percentage multiplied by the net tonnage of newsprint consumed by the producer in the preceding quarter exceeds (ii) the actual tonnage of postconsumer waste paper consumed by the producer during the preceding quarter, and shall pay a tax on the amount reported at the rate of fifteen dollars ($15.00) per ton. This tax is due when the report is filed. No county or municipality may impose a license tax on the business taxed under this section.
(e)	Exemption. – The tax levied in this section does not apply to an amount calculated pursuant to subsection (d) to the extent the amount is attributable solely to the producer's inability to obtain sufficient recycled content newsprint because (i) recycled content newsprint was not available at a price comparable to the price of virgin newsprint; (ii) recycled content newsprint of a quality comparable to virgin newsprint was not available; or (iii) recycled content newsprint was not available within a reasonable period of time during the reporting period. In order to claim the exemption provided in this subsection, a producer must certify to the Secretary:
(1)	The amount of virgin newsprint consumed by the producer during the reporting period solely for one of the reasons listed above.
(2)	That the producer attempted to obtain recycled content newsprint from every manufacturer of recycled content newsprint that offered to sell recycled content newsprint to the producer within the preceding 12 months.
(3)	The name, address, and telephone number of each manufacturer contacted, including the company name and the name of the company's individual representative or employee.
(f)	Use of Proceeds. – The Secretary shall, on a quarterly basis, credit the net proceeds of the tax imposed by this section to the Solid Waste Management Trust Fund created in G.S. 130A-309.12."
Sec. 17.  G.S. 105-109.1 reads as rewritten:
"§ 105-109.1.  Interest.
The taxes on gross receipts levied in G.S. 105-37.1(a) and 105-38(f), the tax on installment paper dealers levied in G.S. 105-83(b), and the tax on producers of newsprint publications levied in G.S. 105-102.6, shall bear interest at the rate established under G.S. 105-241.1(i) from the time the taxes were due until the taxes are paid."
Sec. 18.  G.S. 105.3(16)f. reads as rewritten:
"f.	The sales price of tangible personal property sold through a coin-operated vending machine, other than closed-container soft drinks subject to excise tax under Article 2B of this Chapter or tobacco products, is considered to be eighty-five percent (85%) of the total amount for which the property is sold in the vending machine."
Sec. 19.  G.S. 153A-152 reads as rewritten:
"§ 153A-152. Privilege license taxes.
A county may levy privilege license taxes on trades, occupations, professions, businesses, and franchises to the extent authorized by Article 2 of Chapter 105 of the General Statutes and any other acts of the General Assembly.  A county may levy privilege license taxes to the extent formerly authorized by the following sections of Article 2 of Chapter 105 of the General Statutes before they were repealed:
G.S. 105-53	Peddlers, itinerant merchants, and specialty market operators.
G.S. 105-55	Installing elevators and automatic sprinkler systems.
G.S. 105-58	Fortune tellers, palmists, etc.
G.S. 105-65	Music machines.
G.S. 105-80	Firearms dealers and dealers in other weapons.
G.S. 105-89.1	Motorcycle dealers.
G.S. 105-90	Emigrant and employment agents.
G.S. 105-102.5	General business license."
Sec. 20.  G.S. 160A-211 reads as rewritten:
"§ 160A-211. Privilege license taxes.
Except as otherwise provided by law, a city shall have power to levy privilege license taxes on all trades, occupations, professions, businesses, and franchises carried on within the city. A city may levy privilege license taxes on the businesses that were formerly taxed by the State under the following sections of Article 2 of Chapter 105 of the General Statutes only to the extent the sections authorized cities to tax the businesses before the sections were repealed:
G.S. 105-36	Amusements – Manufacturing, selling, leasing, or distributing moving picture films.
G.S. 105-36.1	Amusements – Outdoor theatres.
G.S. 105-37	Amusements – Moving pictures – Admission.
G.S. 105-41	Attorneys-at-law and other professionals.
G.S. 105-42	Private detectives and investigators.
G.S. 105-45	Collecting agencies.
G.S. 105-46	Undertakers and retail dealers in coffins.
G.S. 105-51.1	Alarm systems.
G.S. 105-53	Peddlers, itinerant merchants, and specialty market operators.
G.S. 105-55	Installing elevators and automatic sprinkler systems.
G.S. 105-61	Hotels, motels, tourist courts, and tourist homes.
G.S. 105-62	Restaurants.
G.S. 105-65	Music machines.
G.S. 105-65.1	Merchandising dispensers and weighing machines.
G.S. 105-74	Pressing clubs, dry cleaning plants, and hat blockers.
G.S. 105-77	Tobacco warehouses.
G.S. 105-80	Firearms dealers and dealers in other weapons.
G.S. 105-85	Laundries.
G.S. 105-86	Outdoor advertising.
G.S. 105-89.1	Motorcycle dealers.
G.S. 105-90	Emigrant and employment agents.
G.S. 105-91	Plumbers, heating contractors, and electricians.
G.S. 105-97	Manufacturers of ice cream.
G.S. 105-98	Branch or chain stores.
G.S. 105-102.1	Certain cooperative associations.
G.S. 105-102.5	General business license."
Sec. 21.  Article 13 of Chapter 66 of the General Statutes is amended by adding a new section to read:
"§ 66-67.3. Peddlers, itinerant merchants, and specialty markets.
(a)	Definitions. – The following definitions apply in this section:
(1)	Itinerant merchant. – A merchant, other than a merchant with an established retail store in the county, who transports an inventory of goods to a building, vacant lot, or other location in a county and who, at that location, displays the goods for sale and sells the goods at retail or offers the goods for sale at retail.
(2)	Peddler. – A person who travels from place to place with an inventory of goods, who sells the goods at retail or offers the goods for sale at retail, and who delivers the identical goods.
(3)	Person. – Defined in G.S. 105-164.3(11).
(4)	Specialty market. – A location, other than a permanent retail store, where space is rented to others for the purpose of selling goods at retail or offering goods for sale at retail.
(5)	Specialty market operator. – A person, other than the State or a unit of local government, who rents space, at a location other than a permanent retail store, to others for the purpose of selling goods at retail or offering goods for sale at retail.
(6)	Specialty market vendor. – A merchant, other than a merchant with an established retail store in the county, who transports an inventory of goods to a specialty market and, at that location, displays the goods for sale and sells the goods at retail or offers the goods for sale at retail.
(b)	Display and Possession of Licenses and Identification. – An itinerant merchant shall keep the merchant's retail sales tax license conspicuously and prominently displayed, so as to be visible for inspection by patrons of the itinerant merchant at the places or locations at which the goods are to be sold or offered for sale.  A peddler shall have the peddler's retail sales tax license with him or her at all times the peddler offers goods for sale, and must produce the license upon the request of any customer, State or local revenue agent, or law enforcement agent.  A specialty market vendor shall keep the retail sales tax license conspicuously and prominently displayed, so as to be visible for inspection by patrons of the specialty market vendor at the places or locations at which the goods are to be sold or offered for sale.  A specialty market operator shall have its retail sales tax license, if any, available for inspection during all times that the specialty market is open and must produce it upon the request of any customer, State or local revenue agent, or law enforcement agent.
Upon the request of any customer, State or local revenue agent, or law enforcement agent, a peddler, itinerant merchant, specialty market operator, or specialty market vendor shall provide its name and permanent address.  If the peddler, itinerant merchant, specialty market operator, or specialty market vendor is not a corporation, he or she shall, upon the request of any customer, State or local revenue agent, or law enforcement agent, provide a valid drivers license, a special identification card issued under G.S. 20-37.7, military identification, or a passport bearing a physical description of the person named reasonably describing the peddler, itinerant merchant, specialty market operator, or specialty market vendor.  If the peddler, itinerant merchant, specialty market operator, or specialty market vendor is a corporation, it shall, upon the request of any customer, State or local revenue agent, or law enforcement agent, give the name and registered agent of the corporation and the address of the registered office of the corporation, as filed with the Secretary of State.
(c)	Permission of Property Owner. – An itinerant merchant or a peddler who travels from place to place by vehicle, in addition to other requirements of this section, shall obtain a written statement signed by the owner or lessee of any property upon which the itinerant merchant or peddler offers goods for sale giving the owner's or lessee's permission to offer goods for sale upon the property of the owner or lessee.  This statement shall clearly state the name of the owner or lessee, the location of the premises for which the permission is granted, and the dates during which the permission is valid.  Further, the statement shall be conspicuously and prominently displayed, so as to be visible for inspection by patrons of the itinerant merchant or peddler, at the places or locations at which the goods are to be sold or offered for sale.
(d)	Specialty Market Registration List. – A specialty market operator shall maintain a daily registration list of all specialty market vendors selling or offering goods for sale at the specialty market.  This registration list shall clearly and legibly show each specialty market vendor's name, permanent address, and retail sales and use tax registration number.  The specialty market operator shall require each specialty market vendor to exhibit a valid retail sales tax license for visual inspection by the specialty market operator at the time of registration, and shall require each specialty market vendor to keep the retail sales tax license conspicuously and prominently displayed, so as to be visible for inspection by patrons of the specialty market vendor at the places or locations at which the goods are offered for sale.  Each daily registration list maintained pursuant to this subsection shall be retained by the specialty market operator for no less than two years and shall at any time be made available upon request to any law enforcement officer.
(e)	Penalty. – It shall be a misdemeanor, punishable by imprisonment of up to 30 days, a fine of up to two hundred dollars ($200.00), or both, for a person to do any of the following:
(1)	Knowingly give false information when registering pursuant to subsection (d) of this section.
(2)	If the person is an itinerant merchant, fail to display the license as required by subsection (b) of this section.
(3)	If the person is a peddler or specialty market operator, fail to produce the license as required by subsection (b) of this section.
(4)	If the person is required to do so, fail to comply with subsection (c) of this section.
	   Whenever satisfactory evidence is presented in any court of the fact that a license was not displayed or produced as required by subsection (b) of this section, or that permission was required by subsection (c) of this section and was not displayed, the defendant shall be found not guilty of that violation if the defendant produces in court a valid license or valid permission that had been issued prior to the time the defendant was charged with the violation.
(5)	Fail to provide name, address, or identification upon request as required by subsection (b) of this section or provide false information in response to such a request.
(f)	Additional Penalties. – It shall be a misdemeanor, punishable by imprisonment of up to 30 days, a fine of up to one thousand dollars ($1,000), or both, for a specialty market operator to fail to comply with subsection (d) of this section or for a specialty market vendor to fail to display the retail sales tax license as required by subsection (b) of this section.  For the purposes of this section, the requirement that a retail sales tax license be displayed is satisfied if the vendor displays either (i) a copy of the license or (ii) evidence that the license has been applied for and the applicable license fee has been paid within 30 days before the date the license was required to be displayed.  Whenever satisfactory evidence is presented in any court of the fact that display of a retail sales tax license was required by this section and the license was not displayed, the specialty market operator or vendor shall not be found guilty of that violation if the operator or vendor produces in court a valid license that had been issued prior to the time the operator or vendor was charged with the violation.
(g)	Local Regulation. – This section does not affect the authority of a county or city to impose additional requirements on peddlers, itinerant merchants, specialty market vendors, or specialty market operators by an ordinance adopted under G.S. 153A-125 or G.S. 160A-178."
Sec. 22.  The base budget of the Department of Revenue is reduced by $_______ for the 1993-94 fiscal year and $______ for the 1994-95 fiscal year.
Sec. 23.  This act becomes effective July 1, 1993.