A BILL TO BE ENTITLED
AN ACT to direct the league of municipalities to determine a different method for distributing the franchise tax on electric power companies in order to simplify the distribution, reduce the administrative burden associated with the distribution, and prevent errors in the distribution.
The General Assembly of North Carolina enacts:
SECTION 1.  The General Assembly finds that the current distribution to cities under G.S. 105‑116.1 of part of the franchise tax on electric power companies imposes unnecessary administrative burdens on the cities, the power companies, and the Department of Revenue and results in numerous errors in the distribution.  The League of Municipalities is directed to recommend a method of distributing this revenue to the cities on the basis of a formula that uses factors such as population and percentage share of prior distributions rather than service inside constantly changing city boundaries.  The League must make its recommendation to the Chairs of the House of Representatives and Senate Finance Committees by June 24, 2005.
SECTION 2.  This act is effective when it becomes law.