A BILL TO BE ENTITLED
AN ACT to facilitate the collection of use tax on items costing one thousand dollars or more.
The General Assembly of North Carolina enacts:
SECTION 1.  Article 15 of Chapter 105 of the General Statutes is amended by adding a new section to read:
"§ 105‑291.1.  Subpoena power to collect unpaid use tax.
If an out‑of‑state manufacturer, dealer, or merchant sells personal property costing one thousand dollars ($1,000) or more to residents of this State who do not pay use tax owed to the Department of Revenue, then the Department shall initiate the appropriate action against the manufacturer, dealer, or merchant holding records of the transactions for sales of the personal property or holding any warranty information to determine the identities of residents failing to pay the use tax. The Department shall issue the appropriate type of subpoenas pursuant to Rule 45 of the North Carolina Rules of Civil Procedure or pursuant to Rule 45 of the federal Rules of Civil Procedure to obtain the names and addresses of State residents who purchased personal property from outside of this State for the purpose of collecting any taxes owed and shall send a tax bill to the residents who have not paid the use tax. Additionally, the Department shall notify county tax assessors of the Department's findings if applicable."
SECTION 2.  There is appropriated from the General Fund to the Department of Revenue the sum of fifty thousand dollars ($50,000) in recurring funds for the 2008‑2009 fiscal year for the implementation of Section 1 of this act.
SECTION 3.  This act becomes effective July 1, 2008.