GENERAL ASSEMBLY OF NORTH CAROLINA

SESSION 1997

H	1 

HOUSE BILL 1594*

Short Title:  Franchise Distribution Repayment.	(Public)

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Sponsors: Representatives Weatherly; Clary and Dedmon.

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Referred to:  Finance.

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May 28, 1998

A BILL TO BE ENTITLED
AN ACT TO LIMIT THE LIABILITY OF THE TOWN OF COLUMBUS FOR REPAYMENT OF ERRONEOUS FRANCHISE TAX DISTRIBUTIONS.
Whereas, G.S. 105-116.1 provides for distribution of certain utility franchise tax proceeds to municipalities based on the amount of taxable utility sales within each municipality; and
Whereas, due to an incorrect report by a utility, the Town of Columbus received during a three-year period approximately one hundred eighty-seven thousand dollars ($187,000) of tax proceeds that should have been distributed to a different municipality; and
Whereas, repayment of these funds to which the town was not entitled would create a substantial hardship because of the town's small budget; Now, therefore,
The General Assembly of North Carolina enacts:
Section 1.  The Town of Columbus is required to repay only fifty thousand dollars ($50,000) of the one hundred eighty-seven thousand dollars ($187,000) distributed to it erroneously under G.S. 105-116.1.
Section 2.  This act is effective when it becomes law.