GENERAL ASSEMBLY OF NORTH CAROLINA

SESSION 1997

H	1 

HOUSE BILL 660

Short Title:  Refund Intangibles Tax.	(Public)

─────────────────────────────────────── 
Sponsors: Committee on Ways and Means; Representatives Allred, Berry, Capps, Gardner, Goodwin, Hardy, Hill, Morgan, Morris, Rayfield, Sexton, Smith, and Wood.

─────────────────────────────────────── 
Referred to:  Finance.

─────────────────────────────────────── 

March 27, 1997

A BILL TO BE ENTITLED
AN ACT TO REPEAL THE INTANGIBLES TAX ON STOCK FOR THE 1990 THROUGH 1994 TAX YEARS AND TO REFUND THE TAX WITH INTEREST FROM THE RAINY DAY FUND.
The General Assembly of North Carolina enacts:
Section 1.  Effective retroactively for the 1990, 1991, 1992, 1993, and 1994 tax years, G.S. 105-203 is repealed.
Section 2.  G.S. 105-266(c) is amended by adding a new subdivision to read:
"(5)	Repealed Tax. – If an act of the General Assembly repeals a tax retroactively, each taxpayer's payment of the repealed tax is an overpayment for the purpose of this section.  On the date the act becomes law, the Secretary shall discover these overpayments of the repealed tax; the Secretary's discoveries are timely for the purposes of this section."
Section 3.  (a) Upon enactment of a law prohibiting the Secretary of Revenue from collecting intangibles tax liability arising from a taxpayer's use of the taxable percentage deductions in former G.S. 105-203 (repealed) for any of the tax years from 1990 through 1994, G.S. 105-267 as it applies to those tax years entitles a taxpayer to a refund for one or more of those tax years to the extent the taxpayer meets all of the following requirements with respect to the applicable tax year:
(1)	The taxpayer paid intangibles tax on shares of stock for the tax year.
(2)	The taxpayer protested payment of the tax within 30 days of payment and met the other requirements of G.S. 105-267, as it then existed, to establish and preserve the taxpayer's refund claim for the tax year.
(3)	The taxpayer's established and preserved refund claim was pending on February 21, 1996, the date the United States Supreme Court held the taxable percentage deduction in former G.S. 105-203 unconstitutional.
(b)	The Secretary of Revenue shall make these refunds in accordance with G.S. 105-267.  The Secretary of Revenue shall draw the amount of the refunds and the cost of making the refunds from the Savings Reserve Account established in G.S. 143-15.3.
Section 4. (a) For all overpayments of the tax repealed by Section 1 of this act, other than overpayments refunded as provided in Section 3 of this act, notwithstanding the provisions of G.S. 105-266(a), refund of the overpayment and interest shall be made in three equal installments as follows:
(1)	The first installment shall be paid within six months after this act becomes law.
(2)	The second installment shall be paid as soon as practicable after July 1, 1998.
(3)	The third installment shall be paid as soon as practicable after July 1, 1999.
(b)	The Department of Revenue shall draw the amount of the refunds of taxpayers' overpayments of the tax repealed by Section 1 of this act as well as the cost of making the refunds from the Savings Reserve Account established in G.S. 143-15.3.
Section 5.  This act does not affect the rights or liabilities of the State, a taxpayer, or another person arising under a statute amended or repealed by this act before the effective date of its amendment or repeal; nor does it affect the right to any refund or credit of a tax that accrued under the amended or repealed statute before the effective date of its amendment or repeal.
Section 6.  Section 1 of this act is effective retroactively for the 1990, 1991, 1992, 1993, and 1994 tax years.  The remainder of this act is effective when this act becomes law.