A BILL TO BE ENTITLED
AN ACT to further encourage the development and maintenance of the Motorsports industry in north carolina.
The General Assembly of North Carolina enacts:
SECTION 1.  G.S. 105‑164.13 is amended by adding a new subdivision to read:
"§ 105‑164.13.  Retail sales and use tax.
The sale at retail and the use, storage, or consumption in this State of the following tangible personal property and services are specifically exempted from the tax imposed by this Article:
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(11b)	Sales of tangible personal property, other than tires or accessories, to a professional motorsports racing team that comprises any part of a professional motor racing vehicle. For the purposes of this subdivision, 'accessories' includes instrumentation, telemetry, consumables, and paint."
SECTION 2.  G.S. 105‑163.010(8) reads as rewritten:
"§ 105‑163.010.  Definitions.
The following definitions apply in this Part:
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(8)	Qualified business venture. – A business that (i) engages primarily in manufacturing, processing, warehousing, wholesaling, research and development, professional motorsports racing, or a service‑related industry, and (ii) is registered with the Secretary of State under G.S. 105‑163.013."
SECTION 3.  G.S. 105‑163.013(b)(3) reads as rewritten:
"(b)	Qualified Business Ventures. – In order to qualify as a qualified business venture under this Part, 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:
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(3)	It is organized to engage primarily in manufacturing, processing, warehousing, wholesaling, research and development, professional motorsports racing, or a service‑related industry."
SECTION 4.  Section 1 of this act becomes effective July 1, 2006, and applies to sales made on or after that date.  Sections 2 and 3 of this act are effective for taxable years beginning on or after January 1, 2006.  The remainder of this act is effective when it becomes law.