A BILL TO BE ENTITLED
AN ACT TO establish a congestion relief and intermodal transportation 21st century fund, to provide for allocation of those funds to: (1) local governments and transportation authorities for public transportation purposes, (2) short-line railroads, for assistance in maintaining and expanding freight service statewide, (3) railroads for intermodal facilities, multimodal facilities, and inland ports, (4) make capital improvements on rail lines to allow improved freight service to the ports and military installations, (5) expand intercity passenger rail service, and to EXTEND COMMON LEVELS OF LOCAL TRANSIT FUNDING AUTHORIZATION TO THREE URBAN REGIONS, and allow other local governments similar options for local transit funding, and to extend the state ports tax credit, all as recommended by the 21st century transportation committee.
The General Assembly of North Carolina enacts:
CHAPTER I. Fund Created.
SECTION 1.  Chapter 136 of the General Statutes is amended by adding a new Article to read:
"Article 19.
"Congestion Relief and Intermodal 21st Century Transportation Fund.
"§ 136‑250. Congestion Relief and Intermodal Transportation 21st Century Fund.
There is established in the State treasury the Congestion Relief and Intermodal Transportation 21st Century Fund, hereinafter referred to as the Fund. The Fund shall consist of all revenues appropriated and allocated to it. Interest on earnings of the Fund shall remain within the Fund.
"§ 136‑251. Findings of fact.
The General Assembly finds that:
(1)	Most of North Carolina's growth is in its urban regions. According to the State Data Center, during the first decade of the 21st century, sixty-six percent (66%) of the projected 1,270,000 growth in population is in 15 urban counties surrounding Charlotte, Raleigh, and the Triad, while forty percent (40%) is in just six counties: Mecklenburg, Wake, Durham, Orange, Forsyth, and Guilford.
(2)	This large urban population growth greatly taxes resources. Despite the visionary creation of the Highway Trust Fund by the 1989 General Assembly and the funding of urban loop highways, congestion continues to grow at an exponential rate. Creation of a special fund to help meet urban transportation needs with alternatives such as rail transit and buses, coupled with land use planning, will spur and guide economic development in a more economically and environmentally sound manner. Charlotte's recent success in opening the first phase of its light rail system, with ridership significantly over projections, shows that North Carolinians are willing to use alternates.
(3)	Accelerated use of rail for transport of freight will reduce highway congestion as well as allow economic expansion in a way that lessens the impact on the State highway system.
(4)	Public transportation, in addition to a program of urban loops and toll roads, will enable North Carolina to have a balanced 21st century transportation system.
(5)	As part of its initial program of internal improvements, the State capitalized the North Carolina Railroad in the 1840s, and invested in other railroads, and those internal improvements led to North Carolina's rapid economic development. The North Carolina Railroad, with a 317‑mile corridor from Charlotte to Morehead City, is still owned by the State.
(6)	Improved rail facilities and restoration of abandoned rail lines can allow increased access to the North Carolina State Ports and military installations located within the State.
(7)	Session Law 2005‑222 found that expanding and upgrading passenger, freight, commuter, and short-line rail service is important to the economy of North Carolina; and provided that the State would seek to provide matching funds partly so it can leverage the maximum federal and private participation to fund needed rail initiatives, such as the restoration of the rail corridor from Wallace to Castle Hayne, and a rail connection between north‑south and east‑west routes in the vicinity of Pembroke.
(8)	Rail freight plays a vital role in economic development throughout the State. Intermodal service depends on partnerships with railroads, trucking companies, seaports, and others in the transportation logistics chain. North Carolina has 3,250 mainline miles of track, with Class I railroads holding seventy-nine percent (79%) of the trackage rights, the remainder controlled by local railroads and switching and terminal railroads. The 2006 Mid‑Cycle Update to the North Carolina Statewide Intermodal Transportation Plan identified seven hundred ninety-nine million dollars ($799,000,000) in freight rail needs over the next 25 years, including maintenance and preservation, modernization, and expansion.
(9)	North Carolina's short-line railroads play a key role in the State's economic development and transportation service and are needed to provide essential services to other modes of transportation and the North Carolina port system. North Carolina agriculture is dependent upon essential service by short-line railroads. North Carolina economic development and commerce are dependent upon essential service by short-line railroads, and grant funds may be used to improve and restore tracks and lines. State funds are needed to maintain short-line railroads as a viable contributor to economic development, agriculture, and transportation in this State in order to prevent the loss of regional rail service. The Department of Transportation reported that 44,992 rail cars handled by short lines kept 179,688 trucks off North Carolina highways. Short-line railroads are essential to preserve and develop jobs in rural and small urban areas of North Carolina.
(10)	Intermodal facilities and inland ports can greatly reduce freight traffic on North Carolina's highway system, reducing demand, congestion, and damage.(11)	The proposed North Carolina International Terminal will need high capacity intermodal access.
(12)	Significant local revenues are needed to match State funds so that a major portion of the expenses is borne by the localities receiving the majority of the benefits. A local option sales tax for public transportation was approved by a fifty-eight percent (58%) favorable vote in Mecklenburg County in 1998, and reaffirmed by a seventy (70%) favorable vote in 2008. Extending this authority to additional jurisdictions, along with other revenue options, will enable localities to demonstrate local support for additional transit options.
(13)	Surveys have indicated broad public support for providing additional public transportation options and for allowing localities to generate revenue to match State grants.
"§ 136‑252. Grants to local governments and transportation authorities.
(a)	Cities, counties, regional public transportation authorities under Article 26 of Chapter 160A of the General Statutes, and regional transportation authorities under Article 27 of Chapter 160A of the General Statutes may receive grants from the fund for public transportation purposes, including planning and engineering.
(b)	No grant may be approved from the fund unless:
(1)	The application is approved by all Metropolitan Planning Organizations under Article 16 of this Chapter whose jurisdiction includes any of the service area of the grant applicant.
(2)	The applicant has approved a transit plan that includes local planning policies and adopted plans that reasonably support transit ridership and appropriate land use.
(3)	The applicant has an adequate and sustainable source of funding established for its share of project costs.
(c)	Grants from the fund may be committed for a multiyear basis to stabilize the phased implementation of a plan, including multiyear allotments. The Board of Transportation shall approve, and amend from time to time, a rolling multiyear projection of up to 15 years for allocation of funds under this section. No applicant is eligible under the 15‑year plan projection for more than one‑third of the total funds to be granted under this Article during that 15‑year period.
(d)	No grant under this section may exceed twenty‑five percent (25%) of the cost of the project and must be matched by an equal or greater amount of funds by the applicant. In evaluating projects, qualification for federal funding shall be considered.
"§ 136‑253. Grants to other units.
(a)	Grants from the fund may also be made to State agencies and railroads for the following purposes:
(1)	Assistance to short line railroads to continue and enhance rail service in the State so as to assist in economic development and access to ports and military installations. This may involve both the Rail Industrial Access program and the Short Line Infrastructure Access Program, as well as other innovative programs. Grants under this subdivision shall not exceed fifty percent (50%) of the nonfederal share, and must be matched by equal or greater funding from the applicant. Total grants under this subdivision may not exceed five million dollars ($5,000,000) per fiscal year.(2)	Assistance to any railroad in construction of (i) rail improvements and restorations and intermodal or multimodal facilities to serve ports and military installations;  and (ii) inland ports to reduce truck traffic on the highway system. Grants under this subdivision shall not exceed fifty percent (50%) of the nonfederal share and must be matched by equal or greater funding from the applicant. Total grants under this subdivision may not exceed ten million dollars ($10,000,000) per fiscal year.
(3)	Assistance to the State ports in terminal railroad facilities and operations, and to improve access to military installations, and to the North Carolina International Terminal. Grants under this subdivision shall not exceed fifty percent (50%) of the nonfederal share and must be matched by equal or greater funding from the applicant. Total grants under this subdivision may not exceed ten million dollars ($10,000,000) per fiscal year.
(4)	Expansion of intercity passenger rail service, including increased frequency and additional cities serviced or introduction of commuter rail service. Routes under this section must extend beyond the territorial jurisdiction of a transportation authority.
(b)	Grants under subsection (a) of this section may serve more than one of the four listed purposes.
"§ 136‑254. Grant approval.
All grants made under this Article are subject to approval of the Board of Transportation. The fund may be administered in conjunction with G.S. 136‑44.20 and G.S. 136‑44.36, but any funds allocated under those sections shall continue to be available as provided therein.
"§ 136‑255. Funds remain available until expended.
Appropriations to the fund remain available until expended."
CHAPTER II. Public Transportation Sales Tax: Mecklenburg, Triangle, Triad.
SECTION 2.(a)  Section 1(a) of S.L. 1997‑417 is recodified as G.S. 105‑510.1.
SECTION 2.(b)  Article 43 of Chapter 105 of the General Statutes, as enacted by S.L. 1997‑417 and amended by subsection (a) of this section, reads as rewritten:
"Article 43.
"Local Government Sales and Use Taxes for Public Transportation.
"Part 1. General.
"§ 105‑505.  Short title; purpose. 
This Article is the Local Government Public Transportation Sales Tax Act and may be cited by that name. This Article gives the counties and transportation authorities of this State an opportunity to obtain an additional source of revenue with which to meet their needs for financing local public transportation systems. It provides them with authority to levy one‑half percent (1/2%) sales and use taxes. All such taxes must be approved in a referendum.
"§ 105‑506.  Definitions. 
The definitions in G.S. 105‑164.3 and the following definitions apply in this Article:
(1)	Board of trustees. – The governing body of an Authority.
(2)	Net proceeds. – Gross proceeds less the cost of administering and collecting the tax.
(3)	Public transportation system. – Any combination of real and personal property established for purposes of public transportation. The systems may include one or more of the following: structures, improvements, buildings, equipment, vehicle parking or passenger transfer facilities, railroads and railroad rights‑of‑way, rights‑of‑way, bus services, shared‑ride services, high‑occupancy vehicle facilities, car‑pool and vanpool programs, voucher programs, telecommunications and information systems, integrated fare systems, bus lanes, and busways. The term does not include, however, streets, roads, or highways except to the extent they are dedicated to public transportation vehicles or to the extent they are necessary for access to vehicle parking or passenger transfer facilities.
(4)	Transportation authority. – A regional public transportation authority or a regional transportation authority created pursuant to Article 26 or Article 27 of Chapter 160A of the General Statutes.
"§ 105‑506.1. Exemption of food.
A tax levied under this Article does not apply to the sales price of food that is not otherwise exempt from tax pursuant to G.S. 105‑164.13 but would be exempt from the State sales and use tax pursuant to G.S. 105‑164.13 if it were purchased with coupons issued under the Food Stamp Program, 7 U.S.C. § 2011.
"Part 2. Mecklenburg County.
"§ 105‑507.  Limitations. 
A county may not levy a tax under this Part unless the county or at least one unit of local government in the county operates a public transportation system. In addition, a county may not levy a tax under this Part unless it has developed a financial plan and distributed it to each unit of local government in the county that operates a local public transportation system. The financial plan must provide for equitable allocation of the net proceeds distributed to the county in consideration of the identified needs of local public transportation systems in the county, countywide human service transportation systems, and expansion of public transportation service to unserved areas in the county.
"§ 105‑508.  Local election on adoption of sales and use tax. 
(a)	Resolution. – The board of commissioners of a county may direct the county board of elections to conduct an advisory referendum within the county on the question of whether a local sales and use tax at the rate of one‑half percent (1/2%) may be levied in accordance with this Part. The election shall be held on a date jointly agreed upon by the boards and shall be held in accordance with the procedures of G.S. 163‑287. The board of commissioners shall hold a public hearing on the question at least 30 days before the date the election is to be held.
(b)	Ballot Question. – The form of the question to be presented on a ballot for a special election concerning the levy of a tax authorized by this Article shall be:
'[ ] FOR	[ ] AGAINST
One‑half percent (1/2%) local sales and use taxes, in addition to the current local sales and use taxes, to be used only for public transportation systems.'
"§ 105‑509.  Levy and collection of sales and use tax. 
If the majority of those voting in a referendum held pursuant to this Part vote for the levy of the tax, the board of commissioners of the county may, by resolution, levy one‑half percent (1/2%) local sales and use taxes in addition to any other State and local sales and use taxes levied pursuant to law. Except as provided in thisPart, the adoption, levy, collection, administration, and repeal of these additional taxes shall be in accordance with Article 39 of this Chapter. In applying the provisions of Article 39 of this Chapter to thisPart, references to 'this Article' mean 'Part 1 of Article 43 of Chapter 105 of the General Statutes'.
"§ 105‑510.  Distribution and use of taxes. 
(a)	Distribution. – The Secretary shall, on a quarterly basis, allocate to each taxing county the net proceeds of the tax levied under this Part by that county. If the Secretary collects taxes under this Part in a month and the taxes cannot be identified as being attributable to a particular taxing county, the Secretary shall allocate these taxes among the taxing counties, in proportion to the amount of taxes collected in each county under this Part in that month and shall include them in the quarterly distribution.
The Secretary shall distribute the net proceeds of the tax levied by a county on a per capita basis among the county and the units of local government in the county that operate public transportation systems. No proceeds shall be distributed to a county that does not operate a public transportation system or to a unit of local government that does not operate a public transportation system.
(b)	Use. – A county must allocate the net proceeds distributed to it in accordance with its financial plan adopted pursuant to G.S. 105‑507 and use the net proceeds only for financing, constructing, operating, and maintaining local public transportation systems. Any other unit of local government may use the net proceeds distributed to it under this Part  only for financing, constructing, operating, and maintaining local public transportation systems. Every unit of government shall use the net proceeds to supplement and not to supplant or replace existing funds or other resources for public transportation systems.
"§ 105‑510.1. Applicability. 
This Part applies only to Mecklenburg County.
"Part 3. Transportation Authorities.
"§ 105‑510.5.  Limitations. 
A transportation authority may not levy a tax under this Part unless:
(1)	It operates a public transportation system.
(2)	It has developed a financial plan and distributed it to each unit of local government located within its territorial jurisdiction. The plan must be approved by the board of commissioners of each county in the district prior to the levy of the tax. If the board of commissioners of a county in a multicounty district does not adopt the plan, the transportation authority may remove that county from the district, and no tax may be levied in that county under this Part. The financial plan must provide for equitable use of the net proceeds within the special district created under this Part and consider (i) the identified needs of local public transportation systems in the district, (ii) human service transportation systems within the district, and (iii) expansion of public transportation systems to underserved areas of the district. The financial plan must also be approved by all Metropolitan Planning Organizations under Article 16 of this Chapter whose jurisdiction includes any of the area of the special district. The plan may be revised from time to time.
(3)	The tax is approved by the voters.
"§ 105‑510.6.  Local election on adoption of sales and use tax – regional public transportation authority.
(a)	Special District. – A transportation authority may create a special district that consists of the entire area of one or more counties within its territorial jurisdiction and may levy on behalf of the special district the tax authorized in this section. A special district created pursuant to this subsection is a body corporate and politic and has the power to carry out the purposes of this subsection. The board of trustees of the transportation authority shall serve, ex officio, as the governing body of a special district it creates pursuant to this subsection. The proceeds of a tax levied under this section may be used only for the benefit of the special district and only for the purposes provided in this Article. In the case of a regional transportation authority created pursuant to Article 27 of Chapter 160A of the General Statutes, the special district may not include counties other than Forsyth and Guilford Counties.
(b)	Resolution. – The board of trustees of the authority, with the concurrent vote of:
(1)	In the case of a single‑county special district, a majority of the county board of commissioners within the special district,
(2)	In the case of a multicounty special district, a majority vote of all the county boards of commissioners within the special district,
may direct the respective county board or boards of elections to conduct an advisory referendum within the special tax district on the question of whether a local sales and use tax at the rate of one‑half percent (1/2%) may be levied within the district in accordance with this Part. The election shall be held on a date jointly agreed upon by the authority and the county board or boards of elections and shall be held in accordance with the procedures of G.S. 163‑287. The board or boards of commissioners shall hold a public hearing on the question at least 30 days before the date the election is to be held.
(c)	Ballot Question. – The form of the question to be presented on a ballot for a special election concerning the levy of a tax authorized by this Article shall be:
'[ ] FOR	[ ] AGAINST
One‑half percent (1/2%) local sales and use taxes, to be used only for public transportation systems.'
"§ 105‑510.7.  Levy and collection of sales and use tax – regional public transportation authority. 
If the majority of those voting in a referendum held pursuant to G.S. 105‑510.6 vote for the levy of the tax, the transportation authority may, by resolution, levy one‑half percent (1/2%) local sales and use taxes within the special district, in addition to any other State and local sales and use taxes levied pursuant to law. In determining the results of the election in a multicounty district, all the counties of the district shall be considered to be one unit. Except as provided in this Part, the adoption, levy, collection, administration, and repeal of these additional taxes shall be in accordance with Article 39 of this Chapter. In applying the provisions of Article 39 of this Chapter to this Article, references to 'this Article' mean 'Part 2 of Article 43 of Chapter 105 of the General Statutes.' Any repeal of the tax shall be done by the same procedure as its enactment under this section, and a petition for repeal under G.S. 105‑473 shall be judged by the total votes in all three counties.
"§ 105‑510.8. Expansion of district.
If a special district established under this Part does not include all the counties in the territorial jurisdiction of a transportation authority, it may be expanded to include an additional whole county or counties by joint action of the board of trustees of the transportation authority and the board of commissioners of the county or boards of commissioners of the counties to be added, with the approval of the voters in the county or counties to be added. The procedure for addition of a county or counties shall be the same as for the initial creation of the district, but the referendum shall be held separately within each of the counties to be added.
"§ 105‑510.9.  Distribution and use of taxes. 
(a)	Distribution. – The Secretary shall, on a quarterly basis, allocate to each transportation authority the net proceeds of the tax levied under this Part within the special tax district, to be used for the benefit of that district.
(b)	Use. – A transportation authority must expend the net proceeds distributed to it in accordance with its financial plan adopted pursuant to G.S. 105‑510.5 and use the net proceeds only for financing, constructing, operating, and maintaining local public transportation systems. The transportation authority shall use the net proceeds to supplement and not to supplant or replace existing funds or other resources for public transportation systems.
"Part 4. Other Counties.
"§ 105‑510.12.  Limitations. 
A county may not levy a tax under this Part unless the county or at least one unit of local government in the county operates a public transportation system or contracts with a transportation authority to provide a public transportation system. In addition, a county may not levy a tax under this Part unless it has developed a financial plan and distributed it to each unit of local government in the county that operates a local public transportation system. The financial plan must provide for equitable allocation of the net proceeds distributed to the county in consideration of the identified needs of local public transportation systems in the county, countywide human service transportation systems, and expansion of public transportation service to unserved areas in the county.
"§ 105‑510.13  Local election on adoption of sales and use tax. 
(a)	Resolution. – The board of commissioners of a county may direct the county board of elections to conduct an advisory referendum within the county on the question of whether a local sales and use tax at the rate of one‑quarter percent (1/4%) may be levied in accordance with this Part. The election shall be held on a date jointly agreed upon by the boards and shall be held in accordance with the procedures of G.S. 163‑287. The board of commissioners shall hold a public hearing on the question at least 30 days before the date the election is to be held.
(b)	Ballot Question. – The form of the question to be presented on a ballot for a special election concerning the levy of a tax authorized by this Article shall be:
'[ ] FOR	[ ] AGAINST
One‑quarter percent (1/4%) local sales and use taxes, in addition to the current local sales and use taxes, to be used only for public transportation systems.'
"§ 105‑510.14.  Levy and collection of sales and use tax. 
If the majority of those voting in a referendum held pursuant to this Part vote for the levy of the tax, the board of commissioners of the county may, by resolution, levy one‑quarter percent (1/4%) local sales and use taxes in addition to any other State and local sales and use taxes levied pursuant to law. Except as provided in this Part, the adoption, levy, collection, administration, and repeal of these additional taxes shall be in accordance with Article 39 of this Chapter. In applying the provisions of Article 39 of this Chapter to this Part, references to 'this Article' mean 'Part 1 of Article 43 of Chapter 105 of the General Statutes.'
"§ 105‑510.15.  Distribution and use of taxes. 
(a)	Distribution. – The Secretary shall, on a quarterly basis, allocate to each taxing county the net proceeds of the tax levied under this Part by that county. If the Secretary collects taxes under this Part in a month and the taxes cannot be identified as being attributable to a particular taxing county, the Secretary shall allocate these taxes among the taxing counties, in proportion to the amount of taxes collected in each county under this Part in that month and shall include them in the quarterly distribution.
The Secretary shall distribute the net proceeds of the tax levied by a county on a per capita basis among the county and the units of local government in the county that operate public transportation systems. No proceeds shall be distributed to a county that does not operate a public transportation system or to a unit of local government that does not operate a public transportation system.
(b)	Use. – A county must allocate the net proceeds distributed to it in accordance with its financial plan adopted pursuant to G.S. 105‑507 and use the net proceeds only for financing, constructing, operating, and maintaining local public transportation systems. Any other unit of local government may use the net proceeds distributed to it under this Part  only for financing, constructing, operating, and maintaining local public transportation systems. Every unit of government shall use the net proceeds to supplement and not to supplant or replace existing funds or other resources for public transportation systems.
"§ 105‑510.16. Applicability.
(a)	This Part only applies in counties that meet one or more of the following criteria:
(1)	Have a population of 160,000 or over according to the most recent decennial federal census.
(2)	Are members of a regional transportation authority created pursuant to Article 27 of Chapter 160A of the General Statutes.
(3)	Are contiguous to Mecklenburg County.
(4)	Are contiguous to Wake, Durham, or Orange County.
(b)	This Part does not apply to Durham, Forsyth, Guilford, Mecklenburg, Orange, or Wake Counties."
CHAPTER III. Extension of Vehicle Registration Charge to Mecklenburg County.
SECTION 3.  Section 6.2 of S.L. 1997‑417, as added by Section 30 of S.L. 2006‑162, reads as rewritten:
"SECTION 3.1.  A county authorized to impose a tax under Part 2 of Article 43 of Chapter 105 of the General Statutes is considered an authority under:
(1)	Article 50 of Chapter 105 of the General Statutes, as enacted by Section 3 of this act, and the board of commissioners of that county is considered the board of trustees of the authority under Article 50. G.S. 105‑554 of Article 50 does not apply to the proceeds of a tax imposed by a county considered an authority under this section. The proceeds of a tax imposed by a county considered an authority under this section must be transferred to the largest city in that county operating a public transportation system and used only for financing, constructing, operating, and maintaining a public transportation system. The proceeds may supplant existing funds allocated for a public transportation system. The term 'public transportation system' has the same meaning as defined in  G.S. 105‑506.
(2)	Article 51 of Chapter 105 of the General Statutes, as enacted by Section 4 of this act, and the board of commissioners of that county is considered the board of trustees of the authority under Article 51. The proceeds of a tax imposed by a county considered an authority under this section must be transferred to the largest city in that county operating a public transportation system and used only for financing, constructing, operating, and maintaining a public transportation system. The term 'public transportation system' has the same meaning as defined in G.S. 105‑506."
CHAPTER IV. Local Vehicle Registration Charge Adjusted for Inflation.
SECTION 4.(a)  Effective July 1, 2008, G.S. 105‑561(a) reads as rewritten:
"(a)	Tax Authorized. – The board of trustees of an Authority may, by resolution, levy an annual license tax in accordance with this Article upon any motor vehicle with a tax situs within its territorial jurisdiction. The purpose of the tax levied under this Article is to raise revenue for capital and operating expenses of an Authority in providing public transportation systems. The rate of tax levied under this Article must be a full dollar amount, but may not exceed seven dollars ($7.00) a year.
SECTION 4.(b)  Effective July 1, 2008, G.S. 105‑561(d) reads as rewritten:
"(d)	Special Tax District. – If a regional transportation authority created under Article 27 of Chapter 160A of the General Statutes has not levied the tax under this section or has levied the tax at a rate of less than seven dollars ($7.00), it may create a special district that consists of the entire area of one or more counties within its territorial jurisdiction and may levy on behalf of the special district the tax authorized in this section. The rate of tax levied within the special district may not, when combined with the rate levied within the entire territorial jurisdiction of the authority; exceed seven dollars ($7.00). The regional transportation authority may not levy or increase a tax within the special district unless the board of commissioners of each county in the special district has adopted a resolution approving the levy or increase. 
A special district created pursuant to this subsection is a body corporate and politic and has the power to carry out the purposes of this subsection. The board of trustees of the regional transportation authority created under Article 27 of Chapter 160A of the General Statutes shall serve, ex officio, as the governing body of a special district it creates pursuant to this subsection. The proceeds of a tax levied under this subsection may be used only for the benefit of the special district and only for the purposes provided in G.S. 105‑564. Except as provided in this subsection, a tax levied under this subsection is governed by the provisions of this Article."
CHAPTER V. Extension of Vehicle Registration Charge and Motor Vehicle Rental Charge to Counties Contiguous to the Triangle and Mecklenburg County and to Other Urban Counties.
SECTION 5.  Subchapter IX of Chapter 105 of the General Statutes is amended by adding a new Article to read:
"Article 52. Urban County Vehicle Rental Tax and Registration Tax.
"§ 105‑557. Urban County Vehicle Rental Tax.
(a)	This section only applies in counties that meet all of the following criteria:
(1)	Has a population of 160,000 or over according to the most recent decennial federal census.
(2)	Is not a member of a regional transportation authority created pursuant to Article 27 of Chapter 160A of the General Statutes.
(3)	Is not contiguous to Mecklenburg County.
(4)	Is not contiguous to Wake, Durham, or Orange County.
(b)	This section does not apply to Durham, Forsyth, Mecklenburg, Orange, or Wake Counties.
(c)	A county is considered an authority under Article 50 of this Chapter, and the board of commissioners of that county is considered the board of trustees of the authority under Article 50.
(d)	To the extent that any county does not levy the full percentage authorized by Article 50 of this Chapter, any city located wholly within that county is considered an authority under Article 50 of this Chapter, and may levy a percentage under that Article as if it were an authority, such that the total gross levy of the county and city does not exceed the maximum permitted by law. For that purpose, the governing board of that city is considered the board of trustees of the authority under Article 50. If thereafter the county levies a tax at a rate that, combined with the city rate, would exceed the maximum, then the new county rate shall become effective on the first day of the next fiscal year beginning at least 60 days after adoption, and that levy automatically reduces the city rate on that date so the combined rate does not exceed the maximum.
(e)	The proceeds of a tax imposed by a county or city considered an authority under this section may be used by that county or city to operate or contract for the operation of a public transportation system and used only for financing, constructing, operating, and maintaining a public transportation system. The term 'public transportation system' has the same meaning as defined in G.S. 105‑506.
"§ 105‑558; Urban County Vehicle Registration Tax.  
(a)	A county authorized to impose a tax under Part 4 of Article 43 of Chapter 105 of the General Statutes is considered an authority under Article 51 of this Chapter, and the board of commissioners of that county is considered the board of trustees of the authority under Article 51.
(b)	To the extent that any county does not levy the full amount authorized by Article 51 of this Chapter, any city located wholly within that county is considered an authority under Article 51 of this Chapter and may levy an amount under that Article (in whole dollars) as if it were an authority, such that the total gross levy of the county and city does not exceed the maximum permitted by law. For that purpose, the governing board of that city is considered the board of trustees of the authority under Article 51. If thereafter the county levies a tax at a rate that, combined with the city rate, would exceed the maximum, then the new county rate shall become effective on the first day of the next fiscal year beginning at least 60 days after adoption, and that levy automatically reduces the city rate on that date so the combined rate does not exceed the maximum.
(c)	The proceeds of a tax imposed by a county or city considered an authority under this section may be used by that county or city to operate or contract for the operation of a public transportation system and used only for financing, constructing, operating, and maintaining a public transportation system. The term 'public transportation system' has the same meaning as defined in G.S. 105‑506. Any levy by a city under this section is in addition to any authority granted by G.S. 20‑97 or any other local act."
CHAPTER V. Extension of State Ports Tax Credit.
SECTION 6.(a)  G.S. 105‑130.41(d) reads as rewritten:
"(d)	Sunset. – This section is repealed effective for taxable years beginning on or after January 1, 2014."
SECTION 6.(b)  G.S. 105‑151.22(d) reads as rewritten:
"(d)	Sunset. – This section is repealed effective for taxable years beginning on or after January 1, 2014."
SECTION 7.  This act is effective when it becomes law.