GENERAL ASSEMBLY OF NORTH CAROLINA

SESSION 1999

H	1 

HOUSE BILL 1684

Short Title:  Use Tax Credit.	(Public)

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Sponsors: Representatives Cansler; Morris, Rayfield, Pope, Gardner, West, Preston, Sherrill, and Davis.

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Referred to:  Rules, Calendar, and Operations of the House.

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May 24, 2000

A BILL TO BE ENTITLED
AN ACT TO EXEMPT THE FIRST ONE THOUSAND DOLLARS IN CONSUMER PURCHASES MADE OUT-OF-STATE FROM THE USE TAX BY PROVIDING A SIXTY DOLLAR TAX CREDIT AGAINST THE USE TAX IMPOSED ON OUT-OF-STATE PURCHASES MADE BY AN INDIVIDUAL FOR A NONBUSINESS PURPOSE AND TO RELIEVE AN INDIVIDUAL WHO IS NOT LIABLE FOR USE TAX FROM THE RECORD-KEEPING REQUIREMENTS.
The General Assembly of North Carolina enacts:
Section 1.  G.S. 105-164.6 is amended by adding a new subsection to read:
"( h)	Credit for Consumer Use Tax. – An individual who purchases tangible personal property outside the State for a nonbusiness purpose is allowed a credit against the tax imposed by this section in an amount equal to sixty dollars ($60.00).  The amount of credit allowed under this subsection may not exceed the amount of tax imposed by this section for the taxable year.  Pursuant to G.S. 105-164.16, use tax payable by an individual who purchases tangible personal property outside the State for a nonbusiness purpose is due on an annual basis.  An individual who is not liable for use tax after the credit allowed under this section does not need to maintain the records required by G.S. 105-164.31 or report any use tax on the annual return."
Section 2.  G.S. 105-164.31 reads as rewritten:
"§ 105-164.31. Complete records must be kept for three years.
(a)	General. – Every retailer, wholesale merchant or consumer as defined by this Article shall secure, maintain and keep for a period of three years a complete record of tangible personal property received, used, sold at retail or wholesale, distributed or stored, leased or rented within this State by the retailer, wholesale merchant or consumer together with invoices, bills of lading, and other pertinent papers and records as may be required by the Secretary for the reasonable administration of this Article.  These records shall be open for inspection by the Secretary or a duly authorized agent of the Secretary at all reasonable hours during the day.
(b)	Consumer Use Tax Record Exception. – An individual who is not liable for use tax under G.S. 105-164.6 does not need to maintain a record of the tangible personal property purchased outside the State for use, storage, or consumption in this State."
Section 3.  This act is effective for taxable years beginning on or after January 1, 2000.