A BILL TO BE ENTITLED
AN ACT to make TECHNICAL, ADMINISTRATIVE, AND CLARIFYING CHANGES to the sales tax refund for volunteer fire departments and volunteer emergency medical services squads.
The General Assembly of North Carolina enacts:
SECTION 1.  G.S. 105‑164.14(b)(2a) reads as rewritten:
"(b)	Nonprofit Entities and Hospital Drugs. – A nonprofit entity is allowed a semiannual refund of sales and use taxes paid by it under this Article on direct purchases of tangible personal property and services, other than electricity, telecommunications service, and ancillary service, for use in carrying on the work of the nonprofit entity. Sales and use tax liability indirectly incurred by a nonprofit entity on building materials, supplies, fixtures, and equipment that become a part of or annexed to any building or structure that is owned or leased by the nonprofit entity and is being erected, altered, or repaired for use by the nonprofit entity for carrying on its nonprofit activities is considered a sales or use tax liability incurred on direct purchases by the nonprofit entity. A request for a refund must be in writing and must include any information and documentation required by the Secretary. A request for a refund for the first six months of a calendar year is due the following October 15; a request for a refund for the second six months of a calendar year is due the following April 15.
The refunds allowed under this subsection do not apply to an entity that is owned and controlled by the United States or to an entity that is owned or controlled by the State and is not listed in this subsection. A hospital that is not listed in this subsection is allowed a semiannual refund of sales and use taxes paid by it on medicines and drugs purchased for use in carrying out its work. The following nonprofit entities are allowed a refund under this subsection:
…
(2a)	Volunteer fire departments and volunteer emergency medical services squads that are one or more of the following:
a.	Exempt from income tax under the Code.
b.	Financially accountable to a city as defined in G.S. 160A‑1, a county, or a group of cities and counties.
…."
SECTION 2.  This act becomes effective July 1, 2013, and applies to sales made on or after that date.