GENERAL ASSEMBLY OF NORTH CAROLINA
SESSION 1997

SESSION LAW 1998-197
HOUSE BILL 1126

AN ACT TO EXEMPT LOCAL PAY PHONE SERVICES FROM SALES TAX.

The General Assembly of North Carolina enacts:

Section 1.  G. S. 105-164.4(a)(4a), as amended by S.L. 1998-22, reads as rewritten:
"(4a)	The rate of three percent (3%) applies to the gross receipts derived by a utility from sales of electricity or local telecommunications service as defined by G.S. 105-120(e), other than sales of electricity subject to tax under another subdivision in this section. Gross receipts from sales of local telecommunications service do not include receipts from service provided by means of public coin-operated pay telephone instruments and paid for by coin.  A person who operates a utility is considered a retailer under this Article."
Section 2.  This act becomes effective January 1, 2000, and applies to sales made on or after that date.
In the General Assembly read three times and ratified this the 14th day of October, 1998.
s/	Dennis A. Wicker
President of the Senate

s/	Harold J. Brubaker
Speaker of the House of Representatives

s/	James B. Hunt, Jr.
Governor

Approved 2:00 p.m. this 24th day of October, 1998