A BILL TO BE ENTITLED
AN ACT to modify the dividend received deduction for regulated investment companies and real estate investment trusts to ensure that all dividends are treated uniformly, to extend for two years the department of revenue's authority to outsource the collection of in‑state tax debts, and to make various administrative changes in the tax laws.
The General Assembly of North Carolina enacts:
modify dividend received deduction for rICs and REITs.
SECTION 1.  G.S. 105‑130.7 and G.S. 105‑130.5(b)(3) are repealed.
SECTION 2.  G.S. 105‑130.4(c) reads as rewritten:
"(c)	Rents and royalties from real or tangible personal property, gains and losses, interest, dividends, patent and copyright royalties and other kinds of income, to the extent that they constitute nonbusiness income, less related expenses shall be allocated as provided in subsections (d) through (h) of this section."
SECTION 3.  G.S. 105‑130.4(f) reads as rewritten:
"(f)	Interest and net dividends are allocable to this State if the corporation's commercial domicile is in this State. For purposes of this section, the term "net dividends" means gross dividend income received less related expenses."
avoid duplicative reporting requirements regarding sales of seized property.
SECTION 4.  G.S. 105‑242(a)(2) reads as rewritten:
"(2)	The Secretary may issue a warrant or order under the Secretary's hand and seal to any revenue officer or other employee of the Department of Revenue charged with the duty to collect taxes, commanding the officer or employee to levy upon and sell the taxpayer's personal property, including that described in G.S. 105‑366(d), found within the State for the payment of the tax, including penalties and interest. Except as otherwise provided in this subdivision, the levy upon the sale of personal property shall be governed by the laws regulating levy and sale under execution. The person to whom the warrant is directed shall proceed to levy upon and sell the personal property subject to levy in the same manner and with the same powers and authority normally exercised by sheriffs in levying upon and selling personal property under execution, except that the property may be sold in any county, in the discretion of the Secretary. In addition to the notice of sale required by the laws governing sale of property levied upon under execution, the Secretary may advertise the sale in any reasonable manner and for any reasonable period of time to produce an adequate bid for the property. Levy and sale fees, plus actual advertising costs, shall be added to and collected in the same manner as taxes. The Secretary is not required to file a report of sale with the clerk of superior court, as required by the laws governing sale of property levied upon under execution, if the sale is otherwise publicly reported."
extend authority to continue using outside collection agencies.
SECTION 5.  Section 9 of S.L. 2001‑380 reads as rewritten:
"SECTION 9.  Section 3 of this act becomes effective November 1, 2001. Section 6 of this act is effective on and after July 1, 2001. Section 8 of this act becomes effective October 1, 2005. The remainder of this act is effective when it becomes law and applies to tax debts that remain unpaid on or after that date."
revise secrecy provision to reflect transfer of dmv enforcement to the division of the state highway patrol.
SECTION 6.  G.S. 105‑259(b)(7) reads as rewritten:
"(7)	To exchange information with the Division of the State Highway Patrol of the Department of Crime Control and Public Safety or the International Fuel Tax Association, Inc., when the information is needed to fulfill a duty imposed on the Department of Revenue or the Division of the State Highway Patrol of the Department of Crime Control and Public Safety."
base local sales tax distributions on taxpayer data.
SECTION 7.  G.S. 105‑472(a) reads as rewritten:
"(a)	County Allocation. – The Secretary shall, on a monthly basis, allocate to each taxing county for which the Secretary collects the tax the net proceeds of the tax collected in that county under this Article. For the purpose of this section, "net proceeds" means the gross proceeds of the tax collected in each county under this Article less taxes refunded, the cost to the State of collecting and administering the tax in the county as determined by the Secretary, and other deductions that may be charged to the county. If the Secretary collects local sales or use taxes in a month and the taxes cannot be identified as being attributable to a particular taxing county, the Secretary shall allocate the taxes among the taxing counties in proportion to the amount of taxes collected in each county under this Article during that month and shall include them in the monthly distribution. Amounts collected by electronic funds transfer payments are included in the distribution for the month in which the return that applies to the payment is due."
simplify procedure for hold harmless calculation.
SECTION 8.  G.S. 105‑521(b) reads as rewritten:
"(b)	Distributions. – On or before May 1 of each year, the Department of Revenue and the Fiscal Research Division of the General Assembly must each submit to the Secretary and to the General Assembly a final projection of the estimated amount that all local governments would be expected to receive during the upcoming fiscal year under G.S. 105-520 if every county levied the tax under this Article for the fiscal year. If the Secretary does not use the lower of the two final projections to make the calculation required by this subsection, the Secretary must report the reasons for this decision to the Joint Legislative Commission on Governmental Operations within 60 days after receiving the projections.
On or before September 15 of each year, the Secretary must multiply each local government's local sales tax share by the estimated amount that all local governments would be expected to receive during the current fiscal year under G.S. 105‑520 if every county levied the tax under this Article for the year. If the resulting amount is less than one hundred percent (100%) of the local government's repealed reimbursement amount, the Secretary must pay the local government the difference, but not less than one hundred dollars ($100.00).
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clarify that the filing fee for an annual report is nonrefundable.
SECTION 9.  G.S. 55‑1‑22 is amended by adding a new subsection to read:
"(d)	The fee for the annual report in subdivision (23) of this section is nonrefundable."
effective date.
SECTION 10.    Sections 1, 2, and 3 of this act are effective for taxable years beginning on or after January 1, 2003.  Section 7 becomes effective July 1, 2003.  The remainder of this act is effective when it becomes law.