A BILL TO BE ENTITLED
AN ACT TO AUTHORIZE SALES TAX REFUNDS FOR CONSTRUCTION MATERIALS FOR AIRCRAFT AND MOTOR VEHICLE MANUFACTURING FACILITIES, PHARMACEUTICAL AND BIOPROCESSING FACILITIES, AND SEMICONDUCTOR MANUFACTURING FACILITIES, AND TO EXPAND THE MEMBERSHIP OF THE REVENUE LAWS STUDY COMMITTEE.
The General Assembly of North Carolina enacts:
SECTION 1.  G.S. 105‑164.14 is amended by adding a new subsection to read:
"(k)	Certain Industrial Facilities. – The owner of an eligible facility is allowed an annual refund of sales and use taxes as provided in this subsection.
(1)	Refund. – The owner of an eligible facility is allowed an annual refund of sales and use taxes paid by it under this Article on building materials, building supplies, fixtures, and equipment that become a part of the real property of the eligible facility. Liability incurred indirectly by the owner for sales and use taxes on these items is considered tax paid by the owner. A request for a refund must be in writing and must include any information and documentation required by the Secretary. A request for a refund is due within six months after the end of the State's fiscal year. Refunds applied for after the due date are barred.
(2)	Eligibility. – A facility is eligible under this subsection if it meets both of the following conditions:
a.	It is primarily engaged in one of the industries listed in subdivision (3) of this subsection.
b.	The Secretary of Commerce has certified that the owner of the facility will invest at least one hundred million dollars ($100,000,000) in constructing the facility in this State.
(3)	Industries. – This subsection applies to the following industries:
a.	Aircraft manufacturing. Aircraft manufacturing means manufacturing or assembling complete aircraft.
b.	Bioprocessing. Bioprocessing means biomanufacturing or processing that includes the culture of cells to make commercial products, the purification of biomolecules from cells, or the use of these molecules in manufacturing.
c.	Motor vehicle manufacturing. Motor vehicle manufacturing means either of the following:
1.	Manufacturing complete automobiles and light duty motor vehicles.
2.	Manufacturing heavy duty truck chassis and assembling complete heavy duty trucks, buses, heavy duty motor homes, and other special purpose heavy duty motor vehicles for highway use.
d.	Pharmaceutical and medicine manufacturing. Pharmaceutical and medicine manufacturing means any of the following:
1.	Manufacturing biological and medicinal products. For the purpose of this sub‑subdivision, a biological product is a preparation that is synthesized from living organisms or their products and used medically as a diagnostic, preventive, or therapeutic agent.
2.	Processing botanical drugs and herbs by grading, grinding, and milling.
3.	Isolating active medicinal principals from botanical drugs and herbs.
4.	Manufacturing pharmaceutical products intended for internal and external consumption in forms such as ampoules, tablets, capsules, vials, ointments, powders, solutions, and suspensions.
e.	Semiconductor manufacturing. Semiconductor manufacturing means manufacturing semiconductors and related solid state devices, such as integrated circuits, memory chips, microprocessors, diodes, transistors, and solar cells and other optoelectronic devices.
(4)	Forfeiture. – If the owner of an eligible facility does not make the required minimum investment within five years after the first refund under this subsection with respect to the facility, the facility loses its eligibility and the owner forfeits all refunds already received under this subsection. Upon forfeiture, the owner is liable for tax under this Article equal to the amount of all past taxes refunded under this subsection, plus interest at the rate established in G.S. 105‑241.1(i), computed from the date each refund was issued. The tax and interest are due 30 days after the date of the forfeiture. A person that fails to pay the tax and interest is subject to the penalties provided in G.S. 105‑236."
SECTION 2.  G.S. 120‑70.105 reads as rewritten:
"§ 120‑70.105.  Creation and membership of the Revenue Laws Study Committee.
(a)	Membership. – The Revenue Laws Study Committee is established. The Committee consists of 18 members as follows:
(1)	Nine members appointed by the President Pro Tempore of the Senate; the persons appointed may be members of the Senate or public members.
(2)	Nine members appointed by the Speaker of the House of Representatives; the persons appointed may be members of the House of Representatives or public members.
(b)	Terms. – Terms on the Committee are for two years and begin on January 15 of each odd‑numbered year, except the terms of the initial members, which begin on appointment. Legislative members may complete a term of service on the Committee even if they do not seek reelection or are not reelected to the General Assembly, but resignation or removal from service in the General Assembly constitutes resignation or removal from service on the Committee.
A member continues to serve until a successor is appointed. A vacancy shall be filled within 30 days by the officer who made the original appointment."
SECTION 3.  Section 1 of this act becomes effective January 1, 2004, and applies to sales made on or after that date. Section 2 of this act is effective when it becomes law. The initial terms of the two new members added by Section 2 of this act begin upon appointment and expire January 15, 2005.