A BILL TO BE ENTITLED
AN ACT to REDUCE GASOLINE AND DIESEL TAXES BY ELIMINATING the variable wholesale component of the motor fuels tax.
The General Assembly of North Carolina enacts:
SECTION 1.  G.S 105‑449.80 reads as rewritten:
"§ 105‑449.80.  Tax rate.
	The motor fuel excise tax rate is a flat rate of seventeen and one‑half cents (17 1/2¢) a gallon. 	
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SECTION 2.  G.S. 105‑449.106 reads as rewritten:
"§ 105‑449.106.  Quarterly refunds for certain local governmental entities, nonprofit organizations, taxicabs, and special mobile equipment.
(a)	Nonprofits. – A nonprofit organization listed below that purchases and uses motor fuel may receive a quarterly refund, for the excise tax paid during the preceding quarter, at the motor fuels tax rate less one cent (1¢) per gallon.
An application for a refund allowed under this subsection must be made in accordance with this Part and must be signed by the chief executive officer of the organization. The chief executive officer of a nonprofit organization is the president of the organization or another officer of the organization designated in the charter or bylaws of the organization.
Any of the following entities may receive a refund under this subsection:
(1)	Repealed by Session Laws 2002‑108, s. 13, effective January 1, 2003.
(2)	A private, nonprofit organization that transports passengers under contract with or at the express designation of a unit of local government.
(3)	A volunteer fire department.
(4)	A volunteer rescue squad.
(5)	A sheltered workshop recognized by the Department of Health and Human Services.
(b)	Taxi. – A person who purchases and uses motor fuel in a taxicab, as defined in G.S. 20‑87(1), while the taxicab is engaged in transporting passengers for hire, or in a bus operated as part of a city transit system that is exempt from regulation by the North Carolina Utilities Commission under G.S. 62‑260(a)(8), may receive a quarterly refund, for the excise tax paid during the preceding quarter, at the motor fuels tax rate less one cent (1¢) per gallon. An application for a refund must be made in accordance with this Part.
(c)	Special Mobile Equipment. – A person who purchases and uses motor fuel to operate special mobile equipment off‑highway may receive a quarterly refund, for the excise tax paid during the preceding quarter, at a rate equal to the  motor fuels tax rate less the amount of sales and use tax due on the fuel under this Chapter, as determined in accordance with G.S. 105‑449.107(c). An application for a refund must be made in accordance with this Part."
SECTION 3.  G.S. 105‑449.107 reads as rewritten:
"§ 105‑449.107.  Annual refunds for off‑highway use and use by certain vehicles with power attachments.
(a)	Off‑Highway. – A person who purchases and uses motor fuel for a purpose other than to operate a licensed highway vehicle may receive an annual refund for the excise tax the person paid on fuel used during the preceding calendar year. The amount of refund allowed is the amount of the motor fuels tax paid less the amount of sales and use tax due on the fuel under this Chapter. An application for a refund allowed under this section must be made in accordance with this Part.
(b)	Certain Vehicles. – A person who purchases and uses motor fuel in one of the vehicles listed below may receive an annual refund for the amount of fuel consumed by the vehicle:
(1)	A concrete mixing vehicle.
(2)	A solid waste compacting vehicle.
(3)	A bulk feed vehicle that delivers feed to poultry or livestock and uses a power takeoff to unload the feed.
(4)	A vehicle that delivers lime or fertilizer in bulk to farms and uses a power takeoff to unload the lime or fertilizer.
(5)	A tank wagon that delivers alternative fuel, as defined in G.S. 105‑449.130, or motor fuel or another type of liquid fuel into storage tanks and uses a power takeoff to make the delivery.
(6)	A commercial vehicle that delivers and spreads mulch, soils, composts, sand, sawdust, and similar materials and that uses a power takeoff to unload, blow, and spread the materials.
The amount of refund allowed is thirty‑three and one‑third percent (33 1/3%) of the following: the amount of motor fuels tax paid less the amount of sales and use tax due on the fuel under this Chapter. An application for a refund allowed under this section must be made in accordance with this Part. This refund is allowed for the amount of fuel consumed by the vehicle in its mixing, compacting, or unloading operations, as distinguished from propelling the vehicle, which amount is considered to be one‑third of the amount of fuel consumed by the vehicle.
(b1)	Sales Price. – The Secretary must determine the average wholesale price of motor fuel for the year. To do this, the Secretary must use information on refiner and gas plant operator sales prices of finished motor gasoline and No. 2 diesel fuel for resale, published by the United States Department of Energy in the "Monthly Energy Review", or equivalent data.
The Secretary must compute the average sales price of finished motor gasoline for the year, compute the average sales price for No. 2 diesel fuel for the year, and then compute a weighted average of the results of the first two computations based on the proportion of tax collected on each under this Article for the year.
(c)	Sales Tax Amount. – Article 5 of this Chapter determines the amount of sales and use tax to be deducted under this section from a motor fuel excise tax refund. The sales price of motor fuel to be used in determining the amount to deduct is the wholesale price computed under subsection (b1) of this section for the year for which the refund is claimed."
SECTION 4.  This act becomes effective July 1, 2004.