GENERAL ASSEMBLY OF NORTH CAROLINA

SESSION 1997

S	3 

SENATE BILL 1241
Finance Committee Substitute Adopted 6/4/98
Finance Committee Substitute #2 Adopted 7/23/98

Short Title:  Amendments to the Revenue Laws.	(Public)

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Sponsors:

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Referred to:  

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May 21, 1998

A BILL TO BE ENTITLED
AN ACT TO MAKE THE REVENUE ACT PENALTIES UNIFORM, TO DELETE OBSOLETE AND INEFFECTIVE PENALTIES, TO GIVE NONPROFIT ENTITIES THREE YEARS TO FILE APPLICATIONS FOR REFUND OF TAXES PAID, TO EXTEND THE SUNSET ON THE QUALIFIED BUSINESS INVESTMENT TAX CREDIT, AND TO AMEND THE QUALIFIED BUSINESS INVESTMENT TAX CREDIT TO PROVIDE AN INCENTIVE FOR INVESTMENT IN SMALL FILM PRODUCTION BUSINESSES.
The General Assembly of North Carolina enacts:
Section 1.  G.S. 105-16 reads as rewritten:
"§ 105-16. When tax must be paid.
Taxes imposed by this Article are due within nine months after the death of the decedent.."
Section 2. G.S. 105-22 reads as rewritten:
"§105-22. Duties of clerks of superior court.
The clerk of the superior court must obtain from an executor or administrator, at the time of the qualification of the executor or administrator, the address of the personal representative qualifying, the names and addresses of the heirs-at-law, legatees, distributees, devisees, etc., as far as practical, the approximate value and character of the property or estate, both real and personal, the relationship of the heirs-at-law, legatees, devisees, etc., to the decedents, and forward the same to the Secretary of Revenue on or before the tenth day of each month. The clerk shall make no report of a death if no inheritance tax return is required to be filed for the decedent's estate under G.S. 105-23 because the estate meets the requirements of subsection (b)	of that section. "
Section 3.  G.S. 105-29 reads as rewritten:
"§ 105-29.  Uniform valuation.
When filing an inheritance tax return, the personal representative of an estate must report as the value of the estate the value that is reported on an estate tax return filed for the estate under the Code. If the federal government does not correct or otherwise determine the value of an estate reported on an estate tax return, the Secretary may determine the value based on evidence of any kind that becomes available to the Secretary from any source.
If the federal government corrects or otherwise determines the value of an estate reported on an estate tax return, the personal representative must, within two years after being notified of the correction or final determination by the federal government, file an inheritance tax return with the Secretary reflecting the corrected or determined value. The Secretary must adopt the value as corrected or determined by the federal government for federal estate tax purposes. The Secretary shall assess and collect any additional tax due on the transfer of property in the estate as provided in Article 9 of this Chapter and shall refund any overpayment of tax as provided in Article 9 of this Chapter. A personal representative who fails to report a federal correction or determination forfeits the right of the estate to any refund due by reason of the determination."
Section 4.  G.S. 105-109 reads as rewritten:
"§ 105-109.  Obtaining license and paying tax.
(a)	When Tax Due. – All State license taxes under this Article or schedule, unless otherwise provided for, shall be due and payable annually on or before the first day of July of each year, or at the date of engaging in such business, trade, employment and/or profession, or doing the act.
(b)	License Required. – Before a person may engage in a business, trade, or profession for which a license is required under this Article, the person must be licensed by the Department pursuant to G.S. 105-104. A license must be displayed conspicuously at the location of the licensed business, trade, or profession. 
(c)	 
(d)	Penalties. – The penalties in G.S. 105-236 apply to this Article.  The Secretary may collect a tax due under this Article in any manner allowed under Article 9 of this Chapter.  
(e)	Local License Taxes. – The penalty and collection provisions of this section apply to taxes levied by counties of the State under the authority of this Article in the same manner and to the same extent as they apply to taxes levied by the State.  The provisions of this section for the collection of delinquent license taxes apply to license taxes levied by the cities and towns of this State under authority of this Article, or any other provision of law, in the same manner and to the same extent as they apply to taxes levied by the State."
Section 5.  G.S. 105-110 is repealed.
Section 6.  G.S. 105-112 is repealed.
Section 7.  G.S. 105-113.3(b) reads as rewritten:
"(b)	Administration. –Article 9 of this Chapter applies to this Article.  ."
Section 8.  G.S. 105-113.87 reads as rewritten:
"§ 105-113.87. Refund for excise tax paid on sacramental wine.
(a)	Refund Allowed. – A person who purchases wine for the purpose stated in G.S. 18B-103(8) may obtain a refund from the Secretary for the amount of the excise tax levied under this Article. The Secretary shall make refunds annually.
(b)	Application. – An applicant for a refund authorized by this section shall file a written request with the Secretary for the refund due for the prior calendar year on or before April 15. The Secretary may by rule prescribe what information and records shall be supplied by the applicant to qualify for the refund.  No refund may be made if the application is filed more than three years after the date it is due.
	."
Section 9.  G.S. 105-130.6 reads as rewritten:
"§ 105-130.6. Subsidiary and affiliated corporations.
The net income of a corporation doing business in this State that is a parent, subsidiary, or affiliate of another corporation shall be determined by eliminating all payments to or charges by the parent, subsidiary, or affiliated corporation in excess of fair compensation in all intercompany transactions of any kind whatsoever. If the Secretary finds as a fact that a report by a corporation does not disclose the true earnings of the corporation on its business carried on in this State, the Secretary may require the corporation to file a consolidated return of the entire operations of the parent corporation and of its subsidiaries and affiliates, including its own operations and income.  The Secretary shall determine the true amount of net income earned by the corporation in this State. The combined net income of the corporation and of its parent, subsidiaries, and affiliates shall be apportioned to this State by use of the applicable apportionment formula required to be used by the corporation under G.S. 105-130.4. The return shall include in the apportionment formula the property, payrolls, and sales of all corporations for which the return is made. For the purposes of this section, a corporation is considered a subsidiary of another corporation when, directly or indirectly, it is subject to control by the other corporation by stock ownership, interlocking directors, or by any other means whatsoever exercised by the same or associated financial interests, whether the control is direct or through one or more subsidiary, affiliated, or controlled corporations.  A corporation is considered an affiliate of another corporation when both are directly or indirectly controlled by the same parent corporation or by the same or associated financial interests by stock ownership, interlocking directors, or by any other means whatsoever, whether the control be direct or through one or more subsidiary, affiliated, or controlled corporations. The Secretary may require a consolidated return under this section regardless of whether the parent or controlling corporation or interests or its subsidiaries or affiliates, other than the taxpayer, are or are not doing business in this State.
If a consolidated return required by this section is not filed within 60 days after it is demanded, then the corporation is subject to the penalties provided in G.S. 105-230 and G.S. 105-236.
The parent, subsidiary, or affiliated corporation must incorporate in its return required under this section information needed to determine the net income taxable under this Part, and must furnish any additional information the Secretary requires. If the return does not contain the information required or the additional information requested is not furnished within 30 days after it is demanded,  the corporation is subject to the penalties provided in G.S. 105-230 and G.S. 105-236.
If the Secretary finds that the determination of the income of a parent, subsidiary, or affiliated corporation under a consolidated return will produce a greater or lesser figure than the amount of income earned in this State, the Secretary may readjust the determination by reasonable methods of computation to make it conform to the amount of income earned in this State.  If the corporation contends the figure produced is greater than the earnings in this State, it must file with the Secretary within 30 days after notice of the determination a statement of its objections and of an alternative method of determination.  The Secretary must consider the statement in determining the income earned in this State. The findings and conclusions of the Secretary shall be presumed to be correct and shall not be set aside unless shown to be plainly wrong."
Section 10.  G.S. 105-163.8 reads as rewritten:
"§ 105-163.8.  Liability of withholding agents.
	A withholding agent who withholds the proper amount of income taxes under this Article and pays the withheld amount to the Secretary is not liable to any person for the amount paid.  A withholding agent who fails to withhold the proper amount of income taxes or pay the amount withheld to the Secretary is liable for the amount of tax not withheld or not paid.  A withholding agent who fails to withhold the amount of income taxes required by this Article or who fails to pay withheld taxes by the due date for paying the taxes is subject to the penalties provided in Article 9 of this Chapter. 
	."
Section 11.  G.S. 105-163.15(a) reads as rewritten:
"(a)	In the case of any underpayment of the estimated tax by an individual, the Secretary shall assess a penalty in an amount determined by applying the applicable annual rate established under G.S. 105-241.1(i) to the amount of the underpayment for the period of the underpayment."
Section 12.  G.S. 105-164.14(d) reads as rewritten:
"(d)	Late Applications. –Refunds applied for more than three years after the due date are barred."
Section 13.  G.S. 105-228.2(i) reads as rewritten:  
"(i)	The provisions of Article 9 of this Chapter apply to this Article."
Section 14.  G.S. 105-230 reads as rewritten:
"§ 105-230.  Charter suspended for failure to report.
If a corporation or a limited liability company fails to file any report or return or to pay any tax or fee required by this Subchapter for 90 days after it is due, the Secretary shall inform the Secretary of State of this failure. The Secretary of State shall suspend the articles of incorporation, articles of organization, or certificate of authority, as appropriate, of the corporation or limited liability company.  The Secretary of State shall immediately notify by mail every domestic or foreign corporation or limited liability company of the suspension.  The powers, privileges, and franchises conferred upon the corporation or limited liability company by the articles of incorporation, the articles of organization, or the certificate of authority terminate upon suspension.  Any act performed or attempted to be performed during the period of suspension is invalid and of no effect.  "
Section 15.  G.S. 105-231 is repealed.
Section 16.  G.S. 105-236 reads as rewritten:
"§ 105-236.  Penalties.
Penalties assessed by the Secretary under this Subchapter are assessed as an additional tax.  Except as otherwise provided by law, and subject to the provisions of G.S. 105-237, the following penalties shall be applicable:
(1)	Penalty for Bad Checks. – When the bank upon which any uncertified check tendered to the Department of Revenue in payment of any obligation due to the Department returns the check because of insufficient funds or the nonexistence of an account of the drawer, the Secretary shall assess a penalty equal to ten percent (10%) of the check, subject to a minimum of one dollar ($1.00) and a maximum of one thousand dollars ($1,000). This penalty does not apply if the Secretary finds that, when the check was presented for payment, the drawer of the check had sufficient funds in an account at a financial institution in this State to pay the check and, by inadvertence, the drawer of the check failed to draw the check on the account that had sufficient funds. The penalty imposed may not be waived or diminished by the Secretary.
(1a)	Penalty for Bad Electronic Funds Transfer. – When an electronic funds transfer cannot be completed due to insufficient funds or the nonexistence of an account of the transferor, the Secretary shall assess a penalty equal to ten percent (10%) of the amount of the transfer, subject to a minimum of one dollar ($1.00) and a maximum of one thousand dollars ($1,000). This penalty may be waived by the Secretary in accordance with G.S. 105-237.
(1b)	Making Payment in Wrong Form. – For making a payment of tax in a form other than the form required by the Secretary pursuant to G.S. 105-241(a), the Secretary shall assess a penalty equal to five percent (5%) of the amount of the tax, subject to a minimum of one dollar ($1.00) and a maximum of one thousand dollars ($1,000). This penalty may be waived by the Secretary in accordance with G.S. 105-237.
(2)	Failure to Obtain a License. – For failure to obtain a license before engaging in a business, trade or profession for which a license is required, the Secretary shall assess a penalty equal to five percent (5%) of the amount prescribed for the license per month or fraction thereof until paid, not to exceed twenty-five percent (25%) of the amount so prescribed, but in any event shall not be less than five dollars ($5.00).
(3)	Failure to File Return. – In case of failure to file any return on the date it is due, determined with regard to any extension of time for filing, the Secretary shall assess a penalty equal to five percent (5%) of the amount of the tax if the failure is for not more than one month, with an additional five percent (5%) for each additional month, or fraction thereof, during which the failure continues, not exceeding twenty-five percent (25%) in the aggregate, or five dollars ($5.00), whichever is the greater.
(4)	Failure to Pay Tax When Due. – In the case of failure to pay any tax when due, without intent to evade the tax, the Secretary shall assess a penalty equal to ten percent (10%) of the tax; provided, that the penalty shall in no event be less than five dollars ($5.00). This penalty does not apply in any of the following circumstances:
a.	When the amount of tax shown as due on an amended return is paid when the return is filed.
b.	When a tax due but not shown on a return is assessed by the Secretary and is paid within 30 days after the date of the proposed notice of assessment of the tax.
(5)	Negligence. – 
a.	Finding of negligence. – For negligent failure to comply with any of the provisions to which this Article applies, or rules issued pursuant thereto, without intent to defraud, the Secretary shall assess a penalty equal to ten percent (10%) of the deficiency due to the negligence.
b.	Large deficiency. –If a taxpayer understates tax liability by twenty-five percent (25%) or more, the Secretary shall assess a penalty equal to twenty-five percent (25%) of the deficiency. " " 
				d.	No double penalty. – If a penalty is assessed under subdivision (6) of this section, no additional penalty for negligence shall be assessed with respect to the same deficiency.
e.	Inheritance and gift tax deficiencies. – This subdivision does not apply to inheritance and gift tax deficiencies that are the result of valuation understatements.
(5a)	Misuse of Certificate of Resale. – For misuse of a certificate of resale by a purchaser, the Secretary shall assess a penalty equal to two hundred fifty dollars ($250.00).
(5b)	Road Tax Understatement. – If a motor carrier understates its liability for the road tax imposed by Article 36B of this Chapter by twenty-five percent (25%) or more, the Secretary shall assess the motor carrier a penalty in an amount equal to two times the amount of the deficiency.
(6)	Fraud. – If there is a deficiency or delinquency in payment of any tax because of fraud with intent to evade the tax, the Secretary shall assess a penalty equal to fifty percent (50%) of the total deficiency.
(7)	Attempt to Evade or Defeat Tax. – Any person who willfully attempts, or any person who aids or abets any person to attempt in any manner to evade or defeat a tax or its payment, shall, in addition to other penalties provided by law, be guilty of a Class I felony which may include a fine up to twenty-five thousand dollars ($25,000).
(8)	Willful Failure to Collect, Withhold, or Pay Over Tax. – Any person required to collect, withhold, account for, and pay over any tax who willfully fails to collect or truthfully account for and pay over the tax shall, in addition to other penalties provided by law, be guilty of a Class 1 misdemeanor. Notwithstanding any other provision of law, no prosecution for a violation brought under this subdivision shall be barred before the expiration of three years after the date of the violation.
(9)	Willful Failure to File Return, Supply Information, or Pay Tax. – Any person required to pay any tax, to make a return, to keep any records, or to supply any information, who willfully fails to pay the tax, make the return, keep the records, or supply the information, at the time or times required by law, or rules issued pursuant thereto, shall, in addition to other penalties provided by law, be guilty of a Class 1 misdemeanor. Notwithstanding any other provision of law, no prosecution for a violation brought under this subdivision shall be barred before the expiration of three years after the date of the violation.
(9a)	Aid or Assistance. – Any person, pursuant to or in connection with the revenue laws, who willfully aids, assists in, procures, counsels, or advises the preparation, presentation, or filing of a return, affidavit, claim, or any other document that the person knows is fraudulent or false as to any material matter, whether or not the falsity or fraud is with the knowledge or consent of the person authorized or required to present or file the return, affidavit, claim, or other document, shall be guilty of a Class I felony which may include a fine up to ten thousand dollars ($10,000).
(10)	Failure to File Informational Returns. – 
	" b.	The Secretary may request a person who fails to file timely statements of payment to another person with respect to wages, dividends, rents, or interest paid to that person to file the statements by a certain date.  If the payer fails to file the statements by that date, the amounts claimed on payer's income tax return as deductions for salaries and wages, or rents or interest shall be disallowed to the extent that the payer failed to comply with the Secretary's request with respect to the statements. 
c.	For failure to file an informational return required by Article 36C or 36D of this Chapter by the date the return is due, there shall be assessed a penalty of fifty dollars ($50.00).
(11)	Any violation of Subchapter I, V, or VIII of this Chapter or of Article 3 of Chapter 119 of the General Statutes is considered an act committed in part at the office of the Secretary in Raleigh. The certificate of the Secretary that a tax has not been paid, a return has not been filed, or information has not been supplied, as required by law, is prima facie evidence that the tax has not been paid, the return has not been filed, or the information has not been supplied.
(12)	Repealed by Session Laws 1991, c. 45, s. 27, effective April 22, 1991."
Section 17.  G.S. 105-241.2(c) reads as rewritten:
"(c)	Frivolous Petitions. – Upon receipt of a petition requesting administrative review as provided in the preceding subsection, the Tax Review Board shall examine the petition and the records and other data transmitted by the Secretary pertaining to the matter for which review is sought, and if it appears from the records and data that the petition is frivolous or filed for the purpose of delay, the Tax Review Board shall dismiss the petition for review."
Section 18.  G.S. 105-244 is repealed.
Section 19.  G.S. 105-253 reads as rewritten:
"§ 105-253.  Personal liability when certain taxes not remitted.
(a)	Any officer, trustee, or receiver of any corporation required to file a report with the Secretary who has custody of funds of the corporation and who allows the funds to be paid out or distributed to the stockholders of the corporation without having remitted to the Secretary any State taxes that are due is personally liable for the payment of the tax.
(b)	Each responsible officer is personally and individually liable for all of the following: 
(1)	All sales and use taxes collected by a corporation or a limited liability company upon its taxable transactions.
(2)	All sales and use taxes due upon taxable transactions of a corporation or a limited liability company but upon which it failed to collect the tax, but only if the person knew, or in the exercise of reasonable care should have known, that the tax was not being collected.
(3)	All taxes due from a corporation or a limited liability company pursuant to the provisions of Articles 36C and 36D of Subchapter V of this Chapter and all taxes payable under those Articles by it to a supplier for remittance to this State or another state.
(4)	All income taxes required to be withheld from the wages of employees of a corporation or a limited liability company.
The liability of the responsible officer is satisfied upon timely remittance of the tax by the corporation or the limited liability company. If the tax remains unpaid after it is due and payable, the Secretary may assess the tax against and collect the tax from any responsible officer in accordance with the procedures in this Article for assessing and collecting tax from a taxpayer.  As used in this section, the term "responsible officer" means the president and the treasurer of a corporation, the manager of a limited liability company, and any officer of a corporation or member of a limited liability company who has a duty to deduct, account for, or pay taxes listed in this subsection.   Any penalties that may be imposed under G.S. 105-236 and that apply to a deficiency also apply to an assessment made under this section. The provisions of this Article apply to an assessment made under this section to the extent they are not inconsistent with this section.
The period of limitations for assessing a responsible officer for unpaid taxes under this section expires one year after the expiration of the period of limitations for assessment against the corporation or limited liability company.
(c)	Repealed by Session Laws 1991 (Regular Session, 1992), c. 1007, s. 15."
Section 20.  G.S. 105-449.45(d) reads as rewritten:
"(d)	Penalties. – A motor carrier that fails to file a report under this section by the required date is subject to a penalty of fifty dollars ($50.00)."
Section 21.  G.S. 105-449.108 is amended by adding a new subsection to read:
"( d)	Late Application. – A refund applied for more than three years after the date the application is due is barred."
Section 22.  G.S. 105-449.109 is repealed.
Section 23.  Section 7 of Chapter 443 of the 1993 Session Laws reads as rewritten:
"Sec. 7.  Division V of Article 4 of Chapter 105 of the General Statutes is repealed effective for investments made on or after January 1, 2003.  Division V of Article 4 of Chapter 105 of the General Statutes will remain in effect for investments made before January 1, 2003."
Section 24.  Section 10 of Chapter 443 of the 1993 Session Laws reads as rewritten:
"Sec. 10.  Section 6 of this act is effective upon ratification.  Section 7 of this act becomes effective for investments made on or after January 1, 2003.  The remainder of this act becomes effective for taxable years beginning on or after January 1, 1994.
A business registered as a qualified business venture or a qualified grantee business before January 1, 1994, retains its registration until the renewal date for the registration of that business under Division V of Article 4 of Chapter 105 of the General Statutes as in effect before January 1, 1994.  The Secretary of State shall not grant renewal of a registration as a qualified business venture or a qualified grantee business unless at the time of filing the renewal application, the business meets the requirements then in effect for a new registration.
Notwithstanding the provisions of G.S. 105-163.014(a), as amended by this act, a credit under Division V of Article 4 of Chapter 105 of the General Statutes for an investment made before January 1, 1994, is not forfeited solely on the grounds that a sibling of the taxpayer provides services for compensation to the business in which the taxpayer invested.
Notwithstanding the provisions of G.S. 105-163.014(d), as amended by this act, a credit under Division V of Article 4 of Chapter 105 of the General Statutes for an investment made before January 1, 1994, is not forfeited solely on the grounds that a redemption of the securities received in the investment is made within five years after the investment was made.
The Secretary of State may require a qualified business venture or a qualified grantee business that is unable to renew its registration after January 1, 1994, to file reports the Secretary of State considers appropriate to determine the location of the headquarters and principal business operations of the business until three years after the date of the last investment in the business that qualified for the tax credit allowed under Division V of Article 4 of Chapter 105 of the General Statutes."
Section 25.  G.S. 105-163.014 is amended by adding a new subsection to read:
"( d1)	Certain Redemptions Allowed. – Forfeiture of a credit does not occur under this section if a qualified business venture that engages primarily in motion picture film production makes a redemption with respect to securities received in an investment and the following conditions are met:
(1)	The redemption occurred because the qualified business venture completed production of a film, sold the film, and was liquidated.
(2)	Neither the qualified business venture nor a related person continues to engage in business with respect to the film produced by the qualified business venture."
Section 26.  G.S. 105-163.014(d)(2) reads as rewritten:
"(2)	Except as provided in subsection (d1) of this section, within five years after the investment was made, the qualified business venture or qualified grantee business in which the investment was made makes a redemption with respect to the securities received in the investment."
Section 27.  G.S. 105-163.010 is amended by adding a new subdivision to read:
"(10a)	Related person. – A person described in one of the relationships set forth in section 267(b) or 707(b) of the Code."
Section 28.  G.S. 105-163.010(14) reads as rewritten:
"(14)	Subordinated debt. – Indebtedness that is not secured and is subordinated to all other indebtedness of the issuer issued or to be issued to a financial institution other than a financial institution described in subdivisions (5)(ii) through (5)(v) of this section.  Except as provided in G.S. 105-163.014(d1), any portion of indebtedness that matures earlier than five years after its issuance is not subordinated debt."
Section 29.  G.S. 105-163.013(b) reads as rewritten:
"(b)	Qualified Business Ventures. – In order to qualify as a qualified business venture under this Division, a business must be registered with the Securities Division of the Department of the Secretary of State. To register, the business must file with the Secretary of State an application and any supporting documents the Secretary of State may require from time to time to determine that the business meets the requirements for registration as a qualified business venture. A business meets the requirements for registration as a qualified business venture if all of the following are true as of the date the business files the required application:
(1)	Repealed by Session Laws 1996, Second Extra Session, c. 14, s. 7.
(1b)	Either (i) it was organized after January 1 of the calendar year in which its application is filed or (ii) during its most recent fiscal year before filing the application, it had gross revenues, as determined in accordance with generally accepted accounting principles, of five million dollars ($5,000,000) or less on a consolidated basis.
(2)	Repealed by Session Laws 1996, Second Extra Session, c. 14, s. 7.
(3)	It is organized to engage primarily in manufacturing, processing, warehousing, wholesaling, research and development, or a service-related industry.
(4)	It does not engage as a substantial part of its business in any of the following:
a.	Providing a professional service as defined in Chapter 55B of the General Statutes.
b.	Construction or contracting.
c.	Selling or leasing at retail.
d.	The purchase, sale, or development, or purchasing, selling, or holding for investment of commercial paper, notes, other indebtedness, financial instruments, securities, or real property, or otherwise make investments.
e.	Providing personal grooming or cosmetics services.
f.	Offering any form of entertainment, amusement, recreation, or athletic or fitness activity for which an admission or a membership is charged.
(5)	It was not formed for the primary purpose of acquiring all or part of the stock or assets of one or more existing businesses.
(6)	It is not a real estate-related business.
The effective date of registration for a qualified business venture whose application is accepted for registration is 60 days before the date its application was filed. No credit is allowed under this Division for an investment made before the effective date of the registration or after the registration is revoked.  For the purpose of this Article, if a taxpayer's investment is placed initially in escrow conditioned upon other investors' commitment of additional funds, the date of the investment is the date escrowed funds are transferred to the qualified business venture free of the condition.
To remain qualified as a qualified business venture, the business must renew its registration annually as prescribed by rule by filing a financial statement for the most recent fiscal year showing gross revenues, as determined in accordance with generally accepted accounting principles, of five million dollars ($5,000,000) or less on a consolidated basis and an application for renewal in which the business certifies the facts required in the original application.
Failure of a qualified business venture to renew its registration by the applicable deadline shall result in revocation of its registration effective as of the next day after the renewal deadline, but shall not result in forfeiture of tax credits previously allowed to taxpayers who invested in the business except as provided in G.S. 105-163.014. The Secretary of State shall send the qualified business venture notice of revocation within 60 days after the renewal deadline. A qualified business venture may apply to have its registration reinstated by the Secretary of State by filing an application for reinstatement, accompanied by the reinstatement application fee and a late filing penalty of one thousand dollars ($1,000), within 30 days after receipt of the revocation notice from the Secretary of State. A business that seeks approval of a new application for registration after its registration has been revoked must also pay a penalty of one thousand dollars ($1,000). A registration that has been reinstated is treated as if it had not been revoked.
If the gross revenues of a qualified business venture exceed five million dollars ($5,000,000) in a fiscal year, the business must notify the Secretary of State in writing of this fact by filing a financial statement showing the revenues of the business for that year."
Section 30.  Sections 1 - 22 of this act become effective September 1, 1998.  Sections 23 and 24 of this act are effective when this act becomes law.  The remainder of this act is effective for taxable years beginning on or after January 1, 1998.