A BILL TO BE ENTITLED
AN ACT to establish a procedure for class actions seeking the refund of state tax paid due to an alleged unconstitutional statute.
The General Assembly of North Carolina enacts:
SECTION 1.  G.S. 1A‑1, Rule 23, is amended by adding a new subsection to read:
"(d)	Tax class actions. – In addition to all of the requirements set out in this rule, a class action seeking the refund of a State tax paid due to an alleged unconstitutional statute may be brought and maintained only as provided in G.S. 105‑241.18."
SECTION 2.  Article 9 of Chapter 105 of the General Statutes is amended by adding a new section to read:
"§ 105‑241.18.  Class actions.
(a)	Authority. – A class action may be maintained against the State for the refund of a tax paid only on the grounds of an alleged unconstitutional statute and only if the requirements of Rule 23 of the North Carolina Rules of Civil Procedure and the requirements of this section are met. For purposes of this section, a class action commences upon the later of the following:
(1)	The date a complaint is filed in accordance with G.S. 105‑241.17 alleging the existence of a class pursuant to Rule 23 of the North Carolina Rules of Civil Procedure. 
(2)	The date a complaint filed in accordance with G.S. 105‑241.17 is amended to allege the existence of a class. 
(b)	Class. – To serve as a class representative of a class action brought under this section, a taxpayer must comply with all of the conditions in G.S. 105‑241.17 and the taxpayer's claims must be typical of the claims of the class members. A taxpayer who is not a class representative is eligible to become a member of a class if the taxpayer could have filed a claim for refund under G.S. 105‑241.7 as of the date the class action commenced, whether or not the taxpayer actually filed a claim for refund as of that date. An eligible class member who is not a class representative and who indicates a desire to be included in the class in accordance with the procedure approved by the court under subsection (c) of this section is not required to follow the procedures in G.S. 105‑241.11 through G.S. 105‑241.17 for the administrative and judicial review of a request for refund or a proposed denial of a request for refund. 
(c)	Procedure. – To become a member of a class action brought under this section, an eligible taxpayer must affirmatively indicate a desire to be included in the class in response to a notice of the class action. If the court so orders, the Department must provide to a class representative a list of names and last known addresses of all taxpayers who are readily determinable by the Department and who are eligible to become a member of the class. The court must approve the content of a notice of a class action, the method for distributing the notice, and the procedure by which an eligible taxpayer affirmatively indicates a desire to be included in the class. The class representative must advance the costs of notifying eligible taxpayers of the class action.
(d)	Statute of Limitations. – The statute of limitations for filing a claim for refund of tax paid due to an alleged unconstitutional statute is tolled for a taxpayer who could timely file a claim for refund on the date a class action is commenced under this section. The statute of limitations is tolled for the limited purpose of allowing a taxpayer to become a member of the class. The tolling of the statute of limitations ends for a specific eligible taxpayer when the taxpayer does not affirmatively indicate a desire to be included in the class within the time and in accordance with the procedure approved by the court under subsection (c) of this section. The tolling of the statute of limitation ends for all taxpayers when a court enters any of the following in a class action:
(1)	A final order denying certification of the class.
(2)	A final order decertifying the class.
(3)	A final order dismissing the class action without an adjudication on the merits.
(4)	A final judgment on the merits.
(e)	No Benefit. – No benefit may accrue to an eligible taxpayer who does not affirmatively indicate a desire to be included in the class within the time and in accordance with the procedure approved by the court under subsection (c) of this section."
SECTION 3.  G.S. 105‑241.19 reads as rewritten:
"§ 105‑241.19.  Declaratory judgments, injunctions, and other actions prohibited.
The remedies in G.S. 105‑241.11 through G.S. 105‑241.18 set out the exclusive remedies for disputing the denial of a requested refund, a taxpayer's liability for a tax, or the constitutionality of a tax statute. Any other action is barred. Neither an action for declaratory judgment, an action for an injunction to prevent the collection of a tax, nor any other action is allowed."
SECTION 4.  This act becomes effective October 1, 2008, and applies to actions filed on or after that date.