GENERAL ASSEMBLY OF NORTH CAROLINA

SESSION 1995

H	3 

HOUSE BILL 223
Second Edition Engrossed 4/25/95
Senate Finance Committee Substitute Adopted 7/11/95

Short Title:  Reduce Soft Drink Tax.	(Public)

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Sponsors:

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Referred to:  Appropriations.

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February 20, 1995

A BILL TO BE ENTITLED
AN ACT TO REDUCE THE EXCISE TAX ON SOFT DRINKS.
The General Assembly of North Carolina enacts:
Section 1.  G.S. 105-113.45 reads as rewritten:
"§ 105-113.45.  Excise taxes on soft drinks and base products.
(a)	Bottled Soft Drinks. – An excise tax of three-fourths cent (3/4¢) is levied on each bottled soft drink.
(b)	Repealed by Session Laws 1991, c. 689, s. 276.
(c)	Liquid Base Products. – An excise tax at the rate of seventy-five cents (75¢) is levied on each individual container of a liquid base product.  The tax applies regardless whether the liquid base product is diverted to and used for a purpose other than making a soft drink.
(d)	Dry Base Products. – An excise tax is levied on each individual container of a dry base product at the rate: 
(1)	Of three-fourths cent (3/4¢) an ounce if the dry base product is not converted into a syrup or other liquid base product before it is used to make a soft drink.
(2)	That would apply under subsection (c) to the resulting liquid base product if the dry base product is converted into a liquid base product before it is used to make a soft drink.
(e)	Repealed by Session Laws 1991, c. 689, s. 276."
Sec. 2.  G.S. 105-113.52(a) reads as rewritten:
"(a)	Tax Reduction. – The tax on the first 15,000 gross of bottled soft drinks sold at wholesale on or after October 1 of each year by a distributor or wholesale dealer who is liable for the tax and who files a timely report under G.S. 105-113.51 is one-half the amount stated in G.S. 105-113.45.  The tax reduction does not apply to bottled soft drinks acquired by the distributor or wholesale dealer in a sale in which the distributor or wholesale dealer presented a soft drink certificate of liability, and it does not apply to sales made by a distributor or wholesale dealer who is not licensed as required by this Article.  When reporting tax due on bottled soft drinks to which this reduced rate applies, a distributor or wholesale dealer shall pay the reduced amount."
Sec. 3.  This act becomes effective July 1, 1996.  The change made by Section 2 of this act to the tax reduction for certain sales of bottled soft drinks applies to sales made on or after July 1, 1996.