GENERAL ASSEMBLY OF NORTH CAROLINA

SESSION 1995

S	2 

SENATE BILL 894
Finance Committee Substitute Adopted 6/15/95

Short Title:  Community College Fuel Exemption.	(Public)

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Sponsors:

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Referred to:  

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May 1, 1995

A BILL TO BE ENTITLED
AN ACT TO RESTORE THE MOTOR FUEL TAX EXEMPTION FOR FUEL USED IN VEHICLES OWNED BY A COMMUNITY COLLEGE AND TO ALLOW SANITARY DISTRICTS A REFUND OF TAX PAID ON MOTOR FUEL.
The General Assembly of North Carolina enacts:
Section 1.  G.S. 105-449A reads as rewritten:
"§ 105-449A.  Exemption of motor fuel used in State or community college vehicles.
(a)	The following motor fuel is exempt from the excise tax levied by this Article:
(1)	Motor fuel purchased by the State for use in State-owned motor vehicles operated for State business.
(2)	Motor fuel purchased by a board of trustees of a community college for use in vehicles owned by the community college and operated for community college business.
This exemption applies only if an invoice for the fuel stating the State agency or community college board of trustees to whom the fuel was delivered, the price per gallon of the fuel excluding the tax, and the kind and quantity of fuel sold is furnished to the Secretary of Revenue.  A person who holds a contract for the sale of motor fuel that is eligible for the exemption granted by this section shall invoice motor fuel sold under the contract at the prevailing contract price, excluding the tax.  A person who sells motor fuel that is eligible for the exemption granted by this section but does not hold a contract for the sale shall invoice motor fuel sold at the lowest informal bid price, excluding the tax.
(b)	A person who sells motor fuel that is exempt under this section and who paid the tax levied by this Article on the fuel may obtain a refund of the tax paid on the fuel upon filing an application for refund with the Secretary of Revenue and attaching an invoice, containing the information required in subsection (a) of this section, to the refund application.  Upon receipt of a proper application and invoice, the Secretary shall refund the amount of tax paid.
(c)	A person who makes a false invoice or application for refund under this section shall be guilty of a Class 1 misdemeanor."
Sec. 2.  G.S. 105-446.1 reads as rewritten:
"§ 105-446.1.  Refund of tax paid on motor fuel by certain governmental entities and nonprofit organizations.
(a)	A governmental entity or a nonprofit organization listed below that purchases and uses motor fuel may receive a quarterly refund, for the tax paid during the preceding quarter, at a rate equal to the amount of the flat cents-per-gallon rate plus the variable cents-per-gallon rate in effect during the quarter for which the refund is claimed, less one cent (1¢) per gallon. Any of the following entities may receive a refund under this section:
(1)	Repealed by Session Laws 1991 (Regular Session, 1992), c. 913, s. 2, effective July 10, 1992.
(2)	A county or a municipal corporation.
(3)	A private, nonprofit organization that transports passengers under contract with or at the express designation of a unit of local government.
(4)	A volunteer fire department.
(5)	A volunteer rescue squad.
(6)	A sheltered workshop recognized by the Department of Human Resources.
(7)	A sanitary district.
(b)	An application for a refund allowed under this section must be made in accordance with G.S. 105-440 and must be signed by the chief executive officer of the entity. The chief executive officer of a governmental entity is the officer designated by the governing body of the entity, such as the chair of a board of county commissioners or the mayor of a city. The chief executive officer of a nonprofit organization is the president of the organization or another officer of the organization designated in the charter or by-laws of the organization."
Sec. 3  This act becomes effective July 1, 1995.