A BILL TO BE ENTITLED
AN ACT to exempt certain sales of natural gas relating to gas cities.
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, digital property, and services are specifically exempted from the tax imposed by this Article:
…
(44a)	Piped natural gas (i) received by a gas city for consumption by that city and (ii) delivered by a gas city to a sales or transportation customer of the gas city.
…."
SECTION 2.  G.S. 105‑164.44L(b) reads as rewritten:
"(b)	Excise Tax Share. – The quarterly excise tax share of a city that is not a gas city is the amount of piped natural gas excise tax distributed to the city under repealed G.S. 105‑187.44 for the same related quarter that was the last quarter in which taxes were imposed on piped natural gas under repealed Article 5E of this Chapter. The determination made by the Department with respect to a city's excise tax share is final and is not subject to administrative or judicial review.
The excise tax share of a city that has dissolved, merged with another city, or divided into two or more cities since it received a distribution under repealed G.S. 105‑187.44 is adjusted as follows:
(1)	If a city dissolves and is no longer incorporated, the excise tax share of the city is added to the amount distributed under subsection (c) of this section.
(2)	If two or more cities merge or otherwise consolidate, their excise tax shares are combined.
(3)	If a city divides into two or more cities, the excise tax share of the city that divides is allocated among the new cities in proportion to the total amount of ad valorem taxes levied by each on property having a tax situs in the city."
SECTION 3.  This act becomes effective July 1, 2014, and applies to sales made on or after that date.