A BILL TO BE ENTITLED
AN ACT to increase the standard deduction, to simplify the franchise tax base, to lower the franchise tax rate, to require marketplace facilitators to collect and remit sales and use tax on marketplace facilitated sales, and to make other tax law changes.
The General Assembly of North Carolina enacts:

part i. personal income tax changes
SECTION 1.1.(a)  G.S. 105‑153.5(a)(1) reads as rewritten:
"(1)	Standard deduction amount. – The standard deduction amount is zero for a person who is not eligible for a standard deduction under section 63 of the Code. For all other taxpayers, the standard deduction amount is equal to the amount listed in the table below based on the taxpayer's filing status:
Filing Status	Standard Deduction
Married, filing jointly/surviving spouse	$20,750
Head of Household	15,563
Single	10,375
Married, filing separately	10,375."
SECTION 1.1.(b)  This section is effective for taxable years beginning on or after January 1, 2021.
SECTION 1.2.(a)  G.S. 105‑153.5(a)(2)a. reads as rewritten:
"a.	Charitable Contribution. – The amount allowed as a deduction for charitable contributions under section 170 of the Code for that taxable year. For taxable years2014 through 2018, a taxpayer who elected to take the income exclusion under section 408(d)(8) of the Code for a qualified charitable distribution from an individual retirement plan by a person who has attained the age of 70 1/2 may deduct the amount that would have been allowed as a charitable deduction under section 170 of the Code had the taxpayer not elected to take the income exclusion."
SECTION 1.2.(b)  G.S. 105‑153.5(c2)(3) reads as rewritten:
"(3)	For taxable years 2014 through 2018, the taxpayer must add the amount excluded from the taxpayer's gross income for a qualified charitable distribution from an individual retirement plan by a person who has attained age 70 1/2 under section 408(d)(8) of the Code. The purpose of this subdivision is to decouple from the income exclusion available under federal tax law."
SECTION 1.2.(c)  This section is effective when it becomes law.

part iI. franchise tax changes
SECTION 2.1.(a)  G.S. 105‑120.2(b) and (c) read as rewritten:
"(b)	Tax Rate. – Every corporation taxed under this section shall annually pay to the Secretary of Revenue, at the time the return is due, the greater of the following:
(1)	A franchise or privilege tax at the rate set in G.S. 105‑122(d2) per one thousand dollars ($1,000) of the amount determined under subsection (a) of this section. In no case shall the tax be more than one hundred fifty thousand dollars ($150,000) nor less than two hundred dollars ($200.00).
(2)	If the tax calculated under this subdivision exceeds the tax calculated under subdivision (1) of this subsection, then the tax is levied at the rate set in G.S. 105‑122(d2) per one thousand dollars ($1,000) on the total actual investment in tangible property in this State of such corporation as computed under G.S. 105‑122(d).

(c)	For purposes of this section, a "holding company" is a corporation that satisfies at least one of the following conditions:
(1)	It has no assets other than ownership interests in corporations in which it owns, directly or indirectly, more than fifty percent (50%) of the outstanding voting stock or voting capital interests.
(2)	It receives during its taxable year more than eighty percent (80%) of its gross income from corporations in which it owns directly or indirectly more than fifty percent (50%) of the outstanding voting stock, voting capital interests, or ownership interests.
(3)	It owns patents, copyrights, trademarks, secret processes, and similar intangible assets that represent more than eighty percent (80%) of its total assets, or receives royalties and license fees that represent more than eighty percent (80%) of its gross income, and it is owned, directly or indirectly, one hundred percent (100%) by a corporation that meets all of the following conditions:
a.	Is engaged in manufacturing, as defined by NAICS.
b.	Generates revenues in excess of five billion dollars ($5,000,000,000) from goods that it manufactures.
c.	Includes in its books and records, kept in accordance with generally accepted accounting principles, an investment that is based on the net worth of its subsidiary that owns the patents, copyrights, trademarks, secret processes, and similar intangible assets."
SECTION 2.1.(b)  G.S. 105‑122(d)(2) is repealed.
SECTION 2.1.(c)  G.S. 105‑122(d2) reads as rewritten:
"(d2)	Tax Rate. – For an electric power company or a company that is a member of a qualified group, the tax rate is one dollar and fifty cents ($1.50) per one thousand dollars ($1,000) of the company's tax base as determined under subsection (d) of this section. For purposes of this subsection, the term "electric power company" has the same meaning as defined in G.S. 105‑130.4(s3) and the term "qualified group" means an affiliated group that has one or more members that is an electric power company.
For all other C Corporations, as defined in G.S. 105‑130.2, the tax rate is one dollar and thirty cents ($1.30) per one thousand dollars ($1,000) of the corporation's tax base as determined under subsection (d) of this section. For an S Corporation, as defined in G.S. 105‑130.2, the tax rate is two hundred dollars ($200.00) for the first one million dollars ($1,000,000) of the corporation's tax base as determined under subsection (d) of this section and one dollar and thirty cents ($1.30) per one thousand dollars ($1,000) of its tax base that exceeds one million dollars ($1,000,000).
In no event may the tax imposed by this section be less than two hundred dollars ($200.00)."
SECTION 2.1.(d)  This section is effective for taxable years beginning on or after January 1, 2020, and applicable to the calculation of franchise tax reported on the 2019 and later corporate income tax returns.
SECTION 2.2.(a)  G.S. 105‑122(d2), as amended by Section 2.1(c) of this Part, reads as rewritten:
"(d2)	Tax Rate. – For an electric power company or a company that is a member of a qualified group, the tax rate is one dollar and fifty cents ($1.50) per one thousand dollars ($1,000) of the company's tax base as determined under subsection (d) of this section. For purposes of this subsection, the term "electric power company" has the same meaning as defined in G.S. 105‑130.4(s3) and the term "qualified group" means an affiliated group that has one or more members that is an electric power company.
For all other C Corporations, as defined in G.S. 105‑130.2, the tax rate is one dollar ($1.00) per one thousand dollars ($1,000) of the corporation's tax base as determined under subsection (d) of this section. For an S Corporation, as defined in G.S. 105‑130.2, the tax rate is two hundred dollars ($200.00) for the first one million dollars ($1,000,000) of the corporation's tax base as determined under subsection (d) of this section and one dollar ($1.00) per one thousand dollars ($1,000) of its tax base that exceeds one million dollars ($1,000,000).
In no event may the tax imposed by this section be less than two hundred dollars ($200.00)."
SECTION 2.2.(b)  This section is effective for taxable years beginning on or after January 1, 2021, and applicable to the calculation of franchise tax reported on the 2020 and later corporate income tax returns.
SECTION 2.3.(a)  G.S. 105‑122(d2), as amended by Sections 2.1(c) and 2.2(a) of this Part, reads as rewritten:
"(d2)	Tax Rate. – 
For a C Corporation, as defined in G.S. 105‑130.2, the tax rate is one dollar ($1.00) per one thousand dollars ($1,000) of the corporation's tax base as determined under subsection (d) of this section. For an S Corporation, as defined in G.S. 105‑130.2, the tax rate is two hundred dollars ($200.00) for the first one million dollars ($1,000,000) of the corporation's tax base as determined under subsection (d) of this section and one dollar ($1.00) per one thousand dollars ($1,000) of its tax base that exceeds one million dollars ($1,000,000).
In no event may the tax imposed by this section be less than two hundred dollars ($200.00)."
SECTION 2.3.(b)  This section is effective for taxable years beginning on or after January 1, 2027, and applicable to the calculation of franchise tax reported on the 2026 and later corporate income tax returns.

part iii. use market‑based sourcing for multistate income tax apportionment
SECTION 3.1.  G.S. 105‑130.4 reads as rewritten:
"§ 105‑130.4.  Allocation and apportionment of income for corporations.
…
(l)	Sales Factor. – The sales factor is a fraction, the numerator of which is the total sales of the corporation in this State during the income year, and the denominator of which is the total sales of the corporation everywhere during the income year. Notwithstanding any other provision under this Part, the receipts from any casual sale of property shall be excluded from both the numerator and the denominator of the sales factor. Where a corporation is not taxable in another state on its apportionable income but is taxable in another state only because of nonapportionable income, all sales shall be treated as having been made in this State.
Receipts are in this State if the taxpayer's market for the receipts is in this State. If the market for a receipt cannot be determined, the state or states of assignment shall be reasonably approximated. In a case in which a taxpayer cannot ascertain the state or states to which receipts of a sale are to be assigned through the use of a method of reasonable approximation, the receipts must be excluded from the denominator of a taxpayer's sales factor. Except as otherwise provided by this section, a taxpayer's market for receipts is in this State as provided below:
(1)	In the case of sale, rental, lease, or license of real property, if and to the extent the property is located in this State.
(2)	In the case of rental, lease, or license of tangible personal property, if and to the extent the property is located in this State.
(3)	In the case of sale of tangible personal property, if and to the extent the property is received in this State by the purchaser. In the case of delivery of goods by common carrier or by other means of transportation, including transportation by the purchaser, the place at which the goods are ultimately received after all transportation has been completed is considered the place at which the goods are received by the purchaser. Direct delivery into this State by the taxpayer to a person or firm designated by a purchaser from within or without the State constitutes delivery to the purchaser in this State.

	
(4)	In the case of sale of a service, if and to the extent the service is delivered to a location in this State.
(5)	In the case of intangible property that is rented, leased, or licensed, if and to the extent the property is used in this State. Intangible property utilized in marketing a good or service to a consumer is "used in this State" if that good or service is purchased by a consumer who is in this State.
(6)	In the case of intangible property that is sold, if and to the extent the property is used in this State. A contract right, government license, or similar intangible property that authorized the holder to conduct a business activity in a specific geographic area is "used in this State" if the geographic area includes all or part of this State. Receipts from a sale of intangible property that is contingent on the productivity, use, or disposition of the intangible property shall be treated as receipts from the rental, lease, or licensing of the intangible property as provided under subdivision (5) of this subsection. All other receipts from a sale of intangible property shall be excluded from the numerator and denominator of the sales factor.
(l1)	Broadcasters. – A broadcaster's market for receipts is in this State as provided in G.S. 105‑130.4A. For purposes of this section, the term "broadcaster" has the same meaning as defined in G.S. 105‑130.4A.
(l2)	Banks. – A bank's market for receipts is in this State as provided in G.S. 105‑130.4B. For purposes of this section, the term "bank" has the same meaning as defined in G.S. 105‑130.4B.
….
(s2)	Pipeline Company. – Receipts from the transportation or transmission of petroleum‑based liquids or natural gas by a company subject to rate regulation by the Federal Energy Regulatory Commission shall be apportioned by multiplying the income by a fraction, the numerator of which is the number of traffic units in this State during the tax year and the denominator of which is the total number of traffic units everywhere during the tax year. For purposes of this section, the term "traffic unit" means one or more of the following:
(1)	Barrel mile. – One barrel of liquid property transported one mile.
(2)	Cubic foot mile. – One cubic foot of gaseous property transported one mile.
(s3)	Electric Power Company. – All apportionable income of an electric power company shall be apportioned by a fraction, the numerator of which is the average value of the real and tangible personal property owned or rented and used in this State by the electric power company during the income year and the denominator of which is the average value of all the real and tangible personal property owned or rented and used by the electric power company during the income year. For purposes of this subsection, the term "electric power company" is a company, including any of its wholly owned noncorporate limited liability companies, primarily engaged in the business of supplying electricity for light, heat, current, or power to persons in this State and that is subject to control of one or more of the following entities: the North Carolina Utilities Commission or the Federal Energy Regulatory Commission.
For purposes of this subsection, the average value of real and tangible personal property owned or rented by an electric power company is determined as follows:
(1)	The average value of property shall be determined by averaging the values at the beginning and end of the income year, but in all cases the Secretary may require the averaging of monthly or other periodic values during the income year if reasonably required to reflect properly the average value of the corporation's property.
(2)	An electric power company that ceases its operations in this State before the end of its income year because of its intention to dissolve or to relinquish its certificate of authority, or because of a merger, conversion, or consolidation, or for any other reason whatsoever shall use the real estate and tangible personal property values as of the first day of the income year and the last day of its operations in this State in determining the average value of property, but the Secretary may require averaging of monthly or other periodic values during the income year if reasonably required to reflect properly the average value of the electric power company's property.
(3)	Property owned by an electric power company is valued at its original cost.
(4)	Property rented by an electric power company is valued at eight times the net annual rental rate.
(5)	Net annual rental rate is the annual rental rate paid by an electric power company less any annual rental rate received by the electric power company from sub‑rentals except that sub‑rentals shall not be deducted when they constitute apportionable income.
(6)	Any property under construction and any property the income from which constitutes nonapportionable income shall be excluded from the computation of the average value of an electric power company's real and tangible personal property.
….
(t3)	State Net Loss Apportionment Election. – Notwithstanding subsection (l)(4) of this section, a taxpayer with a State net loss balance as of the end of its 2019 taxable year may elect to apportion receipts from services based on the percentage of its income‑producing activities performed in this State. The election must be made on the 2020 tax year return and must be in the form prescribed by the Secretary and contain any supporting documentation the Secretary may require. The election is binding and irrevocable until the earlier of the tax year in which (i) the existing State net loss balance is fully utilized or (ii) all of the existing State net loss balance has expired, as determined by applying the limitations set forth in G.S. 105‑130.8A(b). A taxpayer must apportion receipts from services in accordance with subsection (l)(4) of this section for tax years beginning on and after the tax year that the existing State net loss is fully utilized.
For purposes of this subsection, a taxpayer's State net loss balance is the total amount of State net losses computed under G.S. 105‑130.8A for taxable years beginning before January 1, 2020, and available to carry forward to taxable years beginning on or after January 1, 2020. A State net loss balance does not include a State net loss created in a taxable year beginning on or after January 1, 2020. A State net loss created in a taxable year beginning on or after January 1, 2020, must be determined using the apportionment rules in G.S. 105‑130.4(l)."
SECTION 3.2.  Part 1 of Article 4 of Chapter 105 of the General Statutes is amended by adding a new section to read:
"§ 105‑130.4A.  Market‑based sourcing for broadcasters.
(a)	Definitions. – The definitions in G.S. 105‑130.4 and the following definitions apply to this section:
(1)	Audience factor. – The factor determined by the ratio provided in this subdivision. The ratio is as follows:
a.	Television station. – The ratio that the viewing audience located in this State for a television station bears to the total viewing audience for a television station.
b.	Radio station. – The ratio that the listening audience in this State for a radio station bears to the total listening audience for a radio station.
c.	Cable or satellite program and channel broadcasts. – The ratio that the subscribers for a cable or satellite system located in this State bears to the total subscribers of a cable or satellite system. If the number of subscribers cannot be accurately determined from the books and records maintained by the taxpayer, the ratio shall be determined on the basis of the applicable year's subscription statistics located in published surveys, provided the source selected is consistently used from year to year for this purpose.
(2)	Broadcast. – The transmission of audio or video programming, directly or indirectly, to viewers and listeners by any other method of communication or combination of methods.
(3)	Broadcaster. – A person that provides audio or video programming to customers in this State by digital or analog means in exchange for one or more of the following: advertising receipts, subscriber fees, license, rent, or similar fees. The term includes a television or radio station licensed by the Federal Communications Commission, including network‑owned or affiliated stations, a television or radio broadcast network, a cable program network, a distributor of audio or video programming, a cable system operator, and satellite system operator.
(4)	Gross receipts. – The same meaning as the term "sales" in G.S. 105‑130.4.
(5)	Release or in release. – The placing of film or radio programming into service. A film or radio program is placed into service when it is first broadcast to the primary audience for entertainment, educational, commercial, artistic, or other purposes. Each episode of a television or radio series is placed in service when it is first broadcast. A program is not placed in service merely because it is completed and therefore in a condition or state of readiness and availability for broadcast or merely because it is previewed to prospective sponsors or purchasers.
(6)	Rent. – License fees or other payments or consideration provided in exchange for the broadcast or other use of television or radio programming.
(7)	Subscriber. – The individual residence or other outlet that is the ultimate recipient of the transmission of the audio or video programming.
(b)	Reasonable Approximation. – If the audience factor for a receipt cannot be determined, the state or states of assignment shall be reasonably approximated. If a taxpayer is delivering advertising or licensed content directly or indirectly to a known list of subscribers, the taxpayer shall reasonably approximate the receipts attributable to this State's market using a percentage that reflects the ratio of North Carolina subscribers to the total number of subscribers. If the taxpayer is delivering advertising or licensed content through an intermediary and does not have access to the list of subscribers, the taxpayer shall reasonably approximate the receipts attributable to this State's market using a percentage that reflects the ratio of the North Carolina population to the total population in the specific geographic area where the advertisement or licensed content is materially used. Unless the taxpayer provides substantial evidence to the contrary, the area where the advertisement or licensed content is materially used does not include areas outside the United States. If the taxpayer is able to show with substantial evidence that the advertisement or licensed content is materially used in a city within a foreign country, then the population of that city may be included in the population ratio calculation. If the taxpayer is able to show with substantial evidence that the advertisement or license content is materially used throughout a foreign county, then the population of that foreign country may be included in the population ratio calculation. In a case where the specified rules of reasonable approximation fail to reasonably approximate the percentage of receipts attributable to this State's market, the Department may authorize an alternate approach that reflects an attempt to obtain the most accurate assignment of receipts.
(c)	Market for Receipts. – The receipts factor of a broadcaster is a fraction, the numerator of which is the sum of the broadcaster's gross receipts from sources within the State and the denominator of which is the sum of the broadcaster's gross receipts from transactions and activity in the regular course of its trade or business everywhere. Advertising gross receipts and license fees for audio or video programming in release are attributable to this State in accordance with the audience factor in this State. Gross receipts from subscriber fees, rents, sales, or similar charges from audio or video programming in release are attributable to this State based on the amount of subscriber or other fees paid by customers in this State. A sale of audio or video programming on tangible media is sourced to this State as sales of tangible personal property."
SECTION 3.3.  Part 1 of Article 4 of Chapter 105 of the General Statutes is amended by adding a new section to read:
"§ 105‑130.4B.  Market‑based sourcing for banks.
(a)	Definitions. – The definitions in G.S. 105‑130.4 apply to this section and the following definitions apply to this section:
(1)	Bank. – Defined in G.S. 105‑130.7B.
(2)	Billing address. – The location indicated in the books and records of the taxpayer on the first day of the taxable year, or on the date in the taxable year when the customer relationship began, as the address where any notice, statement, or billing relating to the customer's account is mailed.
(3)	Borrower, cardholder, or payor located in this State. – A borrower, credit cardholder, or payor whose billing address is in this State.
(4)	Card issuer's reimbursement fee. – The fee a taxpayer receives from a merchant's bank because one of the persons to whom the taxpayer has issued a credit, debit, or similar type of card has charged merchandise or services to the card.
(5)	Credit card. – A card, or other means of providing information, that entitles the holder to charge the cost of purchases, or a cash advance against a line of credit.
(6)	Debit card. – A card, or other means of providing information, that enables the holder to charge the cost of purchases, or a cash withdrawal, against the holder's bank account or a remaining balance on the card.
(7)	Loan. – Any extension of credit resulting from direct negotiations between the taxpayer and its customer, and/or the purchase, in whole or in part, of such an extension of credit from another. The term includes participations, syndications, and leases treated as loans for federal income tax purposes.
(8)	Loan secured by real property. – A loan or other obligation of which fifty percent (50%) or more of the aggregate value of the collateral used to secure the loan or other obligation, when valued at fair market value as of the time the original loan or obligation was incurred, was real property.
(9)	Merchant discount. – The fee, or negotiated discount, charged to a merchant by the taxpayer for the privilege of participating in a program whereby a credit, debit, or similar type of card is accepted in payment for merchandise or services sold to the cardholder, net of any cardholder chargeback and unreduced by any interchange transaction or issuer reimbursement fee paid to another for charges or purchased made by its cardholder.
(10)	Participation. – An extension of credit in which an undivided ownership interest is held on a prorate basis in a single loan or pool of loans and related collateral. In a loan participation, the credit originator initially makes the loan and then subsequently resells all or a portion of it to other lenders. The participation may or may not be known to the borrower.
(11)	Payor. – The person who is legally responsible for making payment to the taxpayer.
(12)	Real property owned. – Real property (i) on which the taxpayer may claim depreciation for federal income tax purposes, or (ii) to which the taxpayer holds legal title and on which no other person may claim depreciation for federal income tax purposes or could claim depreciation if subject to federal income tax. Real property does not include coin, currency, or property acquired in lieu of or pursuant to a foreclosure.
(13)	Syndication. – An extension of credit in which two or more persons fund and each person is at risk only up to a specified percentage of the total extension of credit or up to a specified dollar amount.
(14)	Tangible personal property owned. – Tangible personal property (i) on which the taxpayer may claim depreciation for federal income tax purposes or (ii) to which the taxpayer holds legal title and on which no other person may claim depreciation for federal income tax purposes could claim deprecation if subject to federal income tax. Tangible personal property does not include coin, currency, or property acquired in lieu of or pursuant to a foreclosure.
(15)	Transportation property. – Vehicles and vessels capable of moving under their own power as well as any equipment or containers attached to such property. Examples of transportation property include aircraft, trains, water vessels, motor vehicles, rolling stock, barges, and trailers.
(b)	General Rule. – The receipts factor of a bank is a fraction, the numerator of which is the total receipts of the taxpayer in this State during the income year, and the denominator of which is the total receipts of the taxpayer everywhere during the income year. The method of calculating receipts for purposes of the denominator is the same as the method used in determining receipts for purposes of the numerator. The receipts factor includes only those receipts described herein that are apportionable income for the taxable year. Notwithstanding any other provision under this Part, the receipts from the following are excluded from both the numerator and the denominator of the receipts factor:
(1)	Receipts from a casual sale of property.
(2)	Receipts exempt from taxation.
(3)	The portion of receipts realized from the sale or maturity of securities or other obligations that represents a return of principal.
(4)	Receipts in the nature of dividends subtracted under G.S. 105‑130.5(b)(3a) and (3b) and dividends excluded for federal tax purposes.
(5)	The portion of receipts from financial swaps and other similar financial derivatives that represent the notional principal amount that generates the cash flow traded in the swap agreement.
(c)	Receipts from the Sale, Lease, or Rental of Real Property. – The numerator of the receipts factor includes receipts from the sale, lease, or rental of real property owned by the taxpayer if the property is located within this State or receipts from the sublease of real property if the property is located within this State.
(d)	Receipts from the Sale, Lease, or Rental of Tangible Personal Property. – The method for calculating receipts from the sale, lease, or rental of tangible personal property is as follows:
(1)	Tangible personal property. – Except as provided in subdivision (2) of this subsection, the numerator of the receipts factor includes receipts from the sale, lease, or rental of tangible personal property owned by the taxpayer if the property is located within this State when it is first placed in service by the lessee.
(2)	Transportation property. – Receipts from the lease or rental of transportation property owned by the taxpayer are included in the numerator of the receipts factor to the extent that the property is used in this State. The extent an aircraft will be deemed to be used in this State and the amount of receipts that is to be included in the numerator of this State's receipts factor is determined by multiplying all the receipts from the lease or rental of the aircraft by a fraction, the numerator of which is the number of landings of the aircraft in this State and the denominator of which is the total number of landings of the aircraft. If the extent of the use of any transportation property within this State cannot be determined, then the property will be deemed to be used wholly in the state in which the property has its principal base of operations. A motor vehicle will be deemed to be used wholly in the state in which it is registered.
(e)	Interest, Fees, and Penalties from Loans Secured by Real Property. – The numerator of the receipts factor includes interest, fees, and penalties from loans secured by real property if the property is located within this State. If the property is located both within this State and one or more other states, the receipts described in this subsection are included in the numerator of the receipts factor if more than fifty percent (50%) of the fair market value of the real property is located within this State. If more than fifty percent (50%) of the fair market value of the real property is not located within any one state, then the receipts described in this subsection are included in the numerator of the receipts factor if the borrower is located in this State. The determination of whether the real property securing a loan is located within this State is made as of the time the original agreement was made and any and all subsequent substitutions of collateral are disregarded.
(f)	Interest, Fees, and Penalties from Loans Not Secured by Real Property. – The numerator of the receipts factor includes interest, fees, and penalties from loans not secured by real property if the borrower is located in this State.
(g)	Net Gains from the Sale of Loans. – The numerator of the receipts factor includes net gains from the sale of loans. Net gains from the sale of loans include income recorded under the coupon stripping rules of section 1286 of the Code. The amount of net gains from the sale of loans that is included in the numerator is determined as follows:
(1)	Secured by real property. – The amount of net gains, but not less than zero, from the sale of loans secured by real property is determined by multiplying the net gains by a fraction, the numerator of which is the amount included in the numerator of the receipts factor pursuant to subsection (e) of this section, and the denominator of which is the total amount of interest, fees, and penalties from loans secured by real property.
(2)	Not secured by real property. – The amount of net gains, but not less than zero, from the sale of loans not secured by real property is determined by multiplying the net gains by a fraction, the numerator of which is the amount included in the numerator of the receipts factor pursuant to subsection (f) of this section, and the denominator of which is the total amount of interest, fees, and penalties from loans not secured by real property.
(h)	Receipts from Interest, Fees, and Penalties from Cardholders. – The numerator of the receipts factor includes interest, fees, and penalties charged to credit, debit, or similar cardholders, including annual fees and overdraft fees, if the cardholder is located in this State.
(i)	Receipts from ATM Fees. – The numerator of the receipts factor includes receipts from fees from the use of an ATM owned or rented by the taxpayer, if the ATM is located in this State. The receipts factor includes all ATM fees that are not forwarded directly to another bank. Receipts from ATM fees that are not sourced under this subsection are sourced pursuant to subsection (l) of this section.
(j)	Net Gains from the Sale of Credit Card Receivables. – The numerator of the receipts factor includes net gains, but not less than zero, from the sale of credit card receivables multiplied by a fraction, the numerator of which is the amount included in the numerator of the receipts factor pursuant to subsection (h) of this section, and the denominator of which is the taxpayer's total amount of interest, fees, and penalties charged to cardholders.
(k)	Miscellaneous Receipts. – The numerator of the receipts factor includes all of the following:
(1)	Card issuer's reimbursement fees. – Receipts from card issuer's reimbursement fees if the payor is located in this State.
(2)	Receipts from merchant's discount. – Receipts from a merchant discount if the payor is located in this State.
(3)	Loan servicing fees. – Receipts from loan servicing fees if the payor is located in this State.
(4)	Receipts from services. – Receipts from services not otherwise apportioned under this section if the payor is located in this State.
(5)	Receipts from investment assets and activity and trading assets and activity. – Receipts from one or more of the following:
a.	Interest and dividends from investment assets and activities and trading assets and activities if the payor is located in this State.
b.	Net gains and other income, but not less than zero, from investment assets and activities and trading assets and activities multiplied by a fraction, the numerator of which is the amount included in the numerator of the receipts factor pursuant to sub‑subdivision a. of this subdivision, and the denominator of which is the taxpayer's total amount of interest and dividends from investment assets and activities and trading assets and activities.
(l)	All Other Receipts. – All other receipts not specifically enumerated in this section are included in the numerator of the receipts factor if the payor is located in this State."
SECTION 3.4.  G.S. 105‑122(c1) reads as rewritten:
"(c1)	Apportionment. – A corporation that is doing business in this State and in one or more other states must apportion its capital stock, surplus, and undivided profits to this State. A corporation must use the apportionment method set out in subdivision (1) of this subsection unless the Department has authorized it to use a different method under subdivision (2) of this subsection. A taxpayer that has made an election under G.S. 105‑130.4(t3) must use the apportionment method set out in subdivision (1) of this subsection as if the election had not been made, unless the Department has authorized a different method under subdivision (2) of this subsection. The portion of a corporation's capital stock, surplus, and undivided profits determined by applying the appropriate apportionment method is considered the amount of capital stock, surplus, and undivided profits the corporation uses in its business in this State.
…."
SECTION 3.5.  The Utilities Commission shall adjust the rates for public utilities, excluding water public utilities with less than two hundred thousand dollars ($200,000) in annual operating revenues, for the tax changes in Section 3.1 of this Part. Each utility shall calculate the cumulative net effect of the tax changes and file the calculations with proposed rate changes to reflect the net prospective tax changes in utility customer rates within 60 days of the enactment of this act. Any adjustments required to existing tax assets or liabilities reflected in the utility's books and records required by the tax changes shall be deferred and reflected in customer rates in either the utility's next rate case or earlier if deemed appropriate by the Commission.
SECTION 3.6.  Under Section 38.4 of S.L. 2016‑94, the Department of Revenue adopted and submitted to the Rules Review Commission rules regarding the implementation and administration of market‑based sourcing principles based on legislation proposed in that section. The Department adopted the rules on January 4, 2017, and submitted the rules to the Rules Review Commission on January 18, 2017. The Rules Review Commission approved the rules and delivered to the Codifier of Rules on February 16, 2017. Pursuant to Section 38.4(b) of S.L. 2016‑94, the Codifier of Rules did not enter the rules into the Administrative Code. The Codifier of Rules is hereby directed by the General Assembly to enter the rules into the Administrative Code on the effective date of this act, and the rules apply to taxable years beginning on or after January 1, 2020.
SECTION 3.7.  Sections 3.1 through 3.4 of this Part are effective for taxable years beginning on or after January 1, 2020. The remainder of this Part is effective when it becomes law.

part iv. marketplace facilitators to collect sales tax
SECTION 4.1.(a)  G.S. 105‑164.3 reads as rewritten:
"§ 105‑164.3.  Definitions.
The following definitions apply in this Article:
…
(20a)	Marketplace. – A physical or electronic place, forum, platform, application, or other method by which a marketplace seller sells or offers to sell items, the delivery of or first use of which is sourced to this State.
(20b)	Marketplace facilitated sale. – The sale of an item by a marketplace facilitator on behalf of a marketplace seller that occurs through a marketplace.
(20c)	Marketplace facilitator. – A person that, directly or indirectly and whether through one or more affiliates, does both of the following:
a.	Lists or otherwise makes available for sale a marketplace seller's items through a marketplace owned or operated by the marketplace facilitator.
b.	Does one or more of the following:
1.	Collects the sales price or purchase price of a marketplace seller's items or otherwise processes payment.
2.	Makes payment processing services available to purchasers for the sale of a marketplace seller's items.
(20d)	Marketplace seller. – A person that sells or offers to sell items through a marketplace regardless of any of the following:
a.	Whether the person has a physical presence in this State.
b.	Whether the person is registered as a retailer in this State.
c.	Whether the person would have been required to collect and remit sales and use tax had the sales not been made through a marketplace.
d.	Whether the person would not have been required to collect and remit sales and use tax had the sales not been made through a marketplace.
…."
SECTION 4.1.(b)  G.S. 105‑164.8(b) reads as rewritten:
"(b)	Remote Sales. – A retailer who makes a remote sale is engaged in business in this State and is subject to the tax levied under this Article if at least one of the following conditions is met:
…
(3)	The retailer solicits or transacts business in this State by employees, independent contractors, agents, or other representatives, whether the remote sales subject to taxation by this State result from or are related in any other way to the solicitation or transaction of business. A retailer is presumed to be soliciting or transacting business by an independent contractor, agent, or other representative if the retailer enters into an agreement with a resident of this State under which the person, for a commission or other consideration, directly or indirectly refers potential customers, whether by a link on an Internet Web site or otherwise, to the retailer. This presumption applies only if the cumulative gross receipts from sales by the retailer to purchasers in this State who are referred to the retailer by all persons with this type of agreement with the retailer is in excess of ten thousand dollars ($10,000) during the preceding four quarterly periods. This presumption may be rebutted by proof that the person with whom the retailer has an agreement did not engage in any solicitation in the State on behalf of the seller that would satisfy the nexus requirement of the United States Constitution during the four quarterly periods in question.
…
(9)	The retailer makes remote sales sourced to this State, including sales as a marketplace seller, for the previous or the current calendar year that meet either of the following:
a.	Gross sales in excess of one hundred thousand dollars ($100,000).
b.	Two hundred or more separate transactions.
(10)	The retailer is a marketplace facilitator that makes sales, including all marketplace facilitated sales for all marketplace sellers, sourced to this State for the previous or the current calendar year that meet either of the following:
a.	Gross sales in excess of one hundred thousand dollars ($100,000).
b.	Two hundred or more separate transactions."
SECTION 4.1.(c)  Part 2 of Article 5 of Chapter 105 of the General Statutes is amended by adding a new section to read:
"§ 105‑164.4J.  Marketplace facilitated sales.
(a)	Scope. – This section applies to a marketplace facilitator that makes sales, including all marketplace facilitated sales for all marketplace sellers, sourced to this State for the previous or the current calendar year that meet either of the following:
(1)	Gross sales in excess of one hundred thousand dollars ($100,000).
(2)	Two hundred or more separate transactions.
(b)	Payment of Tax. – A marketplace facilitator that meets the threshold in subsection (a) of this section is considered the retailer of each marketplace facilitated sale it makes and is liable for collecting and remitting the sales and use tax on all such sales. A marketplace facilitator is required to comply with the same requirements and procedures as all other retailers registered or who are required to be registered to collect and remit sales and use tax in this State. A marketplace facilitator is required to collect and remit sales tax as required by this section regardless of whether a marketplace seller for whom it makes a marketplace facilitated sale meets any of the following conditions:
(1)	Has a physical presence in this State.
(2)	Is required to be registered to collect and remit sales and use tax in this State.
(3)	Would have been required to collect and remit sales and use tax in this State had the sale not been made through a marketplace.
(4)	Would not have been required to collect and remit sales and use tax in this State had the sale not been made through a marketplace.
(c)	Report. – A marketplace facilitator must provide or make available to each marketplace seller the information listed in this subsection with respect to marketplace facilitated sales that are made on behalf of the marketplace seller and that are sourced to this State. The information may be provided in any format and shall be provided or made available no later than 10 days after the end of each calendar month. The required information to be provided or made available to each marketplace seller is as follows:
(1)	Gross sales.
(2)	The number of separate transactions.
(d)	Refund of Tax. – If a purchaser receives a refund on any portion of the sales price from a marketplace facilitator who collected and remitted the tax on the retail sale, the provisions of G.S. 105‑164.11A(a) apply.
(e)	Class Actions. – No class action may be brought against a marketplace facilitator in any court of this State on behalf of customers arising from or in any way related to an overpayment of sales or use tax collected on facilitated sales by a marketplace facilitator, regardless of whether that claim is characterized as a tax refund claim. Nothing in this subsection affects a customer's right to seek a refund as provided under G.S. 105‑164.11.
(f)	Agreements. – Nothing in this section shall be construed to interfere with the ability of a marketplace facilitator and a marketplace seller to enter into an agreement with each other regarding the fulfillment of the requirements of this Article, except that an agreement may not require a marketplace seller to collect and remit sales and use tax on marketplace facilitated sales.
(g)	Use Tax Obligation. – Nothing in this section affects the obligation of any purchaser to remit use tax for any taxable transaction for which a marketplace facilitator does not collect and remit sales or use tax.
(h)	Limitation. – This section does not apply to an accommodation facilitator, an admission facilitator, or a service contract facilitator whose collection and remittance requirements are set out in G.S. 105‑164.4F, 105‑164.4G, and 105‑164.4I, respectively."
SECTION 4.2.(a)  G.S. 105‑164.3 reads as rewritten:
"§ 105‑164.3.  Definitions.
The following definitions apply in this Article:
(1)	Accommodation. – A hotel room, a motel room, a residence, a cottage, or a similar lodging facility for occupancy by an individual.
(1a)	Accommodation facilitator. – A person that contracts, either directly or indirectly, with a provider of an accommodation to perform, either directly or indirectly, one or more of the activities listed in this subdivision. The term includes a real estate broker as defined in G.S. 93A‑2. The activities are:
a.	Market the accommodation and accept payment or collect credit card or other payment information for the rental of the accommodation.
b.	List the accommodation for rental on a forum, platform, or other application for a fee or other consideration.
…."
SECTION 4.2.(b)  G.S. 105‑164.4F reads as rewritten:
"§ 105‑164.4F.  Accommodation rentals.

	
	
(b)	Tax. – The gross receipts derived from the rental of an accommodation are taxed at the general rate set in G.S. 105‑164.4. Gross receipts derived from the rental of an accommodation include the sales price of the rental of the accommodation. The sales price of the rental of an accommodation is determined as if the rental were a rental of tangible personal property. The sales price of the rental of an accommodation made by an accommodation facilitator includes any charges or fees, by whatever name called, charged by the accommodation facilitator to the purchaser of the accommodation that are necessary to complete the rental. The tax is due and payable by the retailer in accordance with G.S. 105‑164.16.
(b1)	Retailer. – Except as otherwise provided in subsection (c) of this section, the retailer of the rental of an accommodation is one or more of the persons listed below that collects the payment, or a portion of the payment, for the rental of the accommodation. The retailer is liable for reporting and remitting the tax due on the portion of the gross receipts derived from the rental of the accommodation that the retailer collects. The retailer may be one or more of the following:
(1)	The provider of the accommodation.
(2)	An accommodation facilitator.
(c)	Certain Accommodation Facilitator Transactions. – This subsection applies only to an accommodation facilitator that is operated by or on behalf of a hotel or a hotel corporation, that facilitates the rental of hotel accommodations solely for the hotel or the hotel corporation's owned or managed hotels and franchisees, and that collects payment, or a portion of the payment, for the rental of an accommodation. An accommodation facilitator subject to this subsection is not considered the retailer of the rental of the accommodation. The accommodation facilitator must send the retailer the tax due on the sales price, or the portion of the sales price, the accommodation facilitator collected no later than 10 days after the end of each calendar month. An accommodation facilitator that does not send the retailer the tax due on the sales price, or the portion of the sales price the accommodation facilitator collected, is liable for the amount of tax the accommodation facilitator fails to send. An accommodation facilitator is not liable for tax sent to a retailer but not remitted by the retailer to the Secretary. Tax payments received by a retailer from an accommodation facilitator are held in trust by the retailer for remittance to the Secretary. A retailer that receives a tax payment from an accommodation facilitator must remit the amount received to the Secretary. A retailer is not liable for tax due but not received from an accommodation facilitator.
(c1)	Accommodation Facilitator Report. – An accommodation facilitator must file with the Secretary an annual report by March 31 of each year for the prior calendar year for accommodation rentals it makes. The annual report must be provided in electronic format and include the property owner's name, the property owner's mailing address, the physical location of the accommodation, and gross receipts information for the rentals.
	
(e)	Exemptions. – The tax imposed by this section does not apply to the following:
(1)	A private residence, cottage, or similar accommodation that is rented for fewer than 15 days in a calendar year unless the rental of the accommodation is made by an accommodation facilitator.
(2)	An accommodation supplied to the same person for a period of 90 or more continuous days.
(3)	An accommodation arranged or provided to a person by a school, camp, or similar entity where a tuition or fee is charged to the person for enrollment in the school, camp, or similar entity."
SECTION 4.2.(c)  G.S. 160A‑215(c) reads as rewritten:
"(c)	Collection. – A retailer who is required to remit to the Department of Revenue the State sales tax imposed by G.S. 105‑164.4(a)(3) on accommodations is required to remit a room occupancy tax to the taxing city on and after the effective date of the levy of the room occupancy tax. The room occupancy tax applies to the same gross receipts as the State sales tax on accommodations and is calculated in the same manner as that tax. An accommodation facilitator, as defined in G.S. 105‑164.3, has the same responsibility and liability under the room occupancy tax as the accommodation facilitator has under the State sales tax on accommodations.
If a taxable accommodation is furnished as part of a package, the bundled transaction provisions in G.S. 105‑164.4D apply in determining the sales price of the taxable accommodation. If those provisions do not address the type of package offered, the person offering the package may determine an allocated price for each item in the package based on a reasonable allocation of revenue that is supported by the person's business records kept in the ordinary course of business and calculate tax on the allocated price of the taxable accommodation.
A retailer must separately state the room occupancy tax. Room occupancy taxes paid to a retailer are held in trust for and on account of the taxing city.
The taxing city shall design and furnish to all appropriate businesses and persons in the city the necessary forms for filing returns and instructions to ensure the full collection of the tax. An operator of a business who collects a room occupancy tax may deduct from the amount remitted to the taxing city a discount equal to the discount the State allows the retailer for State sales and use tax."
SECTION 4.2.(d)  G.S. 153A‑155(c) reads as rewritten:
"(c)	Collection. – A retailer who is required to remit to the Department of Revenue the State sales tax imposed by G.S. 105‑164.4(a)(3) on accommodations is required to remit a room occupancy tax to the taxing county on and after the effective date of the levy of the room occupancy tax. The room occupancy tax applies to the same gross receipts as the State sales tax on accommodations and is calculated in the same manner as that tax. An accommodation facilitator, as defined in G.S. 105‑164.3, has the same responsibility and liability under the room occupancy tax as theaccommodation facilitator has under the State sales tax on accommodations.
If a taxable accommodation is furnished as part of a package, the bundled transaction provisions in G.S. 105‑164.4D apply in determining the sales price of the taxable accommodation. If those provisions do not address the type of package offered, the person offering the package may determine an allocated price for each item in the package based on a reasonable allocation of revenue that is supported by the person's business records kept in the ordinary course of business and calculate tax on the allocated price of the taxable accommodation.
A retailer must separately state the room occupancy tax. Room occupancy taxes paid to a retailer are held in trust for and on account of the taxing county.
The taxing county shall design and furnish to all appropriate businesses and persons in the county the necessary forms for filing returns and instructions to ensure the full collection of the tax. A retailer who collects a room occupancy tax may deduct from the amount remitted to the taxing county a discount equal to the discount the State allows the retailer for State sales and use tax."
SECTION 4.3.(a)  G.S. 105‑164.3 reads as rewritten:
"§ 105‑164.3.  Definitions.
The following definitions apply in this Article:
…
(1b)	Admission charge. – Gross receipts derived for the right to attend an entertainment activity. The term includes a charge for a single ticket, a multi‑occasion ticket, a seasonal pass, and an annual pass; a membership fee that provides for admission; a cover charge; a surcharge; a convenience fee, a processing fee, a facility charge, a facilitation fee, or similar charge; or any other charges included in gross receipts derived from admission.
(1c)	Admission facilitator. – A person who accepts payment of an admission charge to an entertainment activity and who is not the operator of the venue where the entertainment activity occurs.
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(1f)	Amenity. – A feature that increases the value or attractiveness of an entertainment activity that allows a person access to items that are not subject to tax under this Article and that are not available with the purchase of admission to the same event without the feature. The term includes parking privileges, special entrances, access to areas other than general admission, mascot visits, and merchandise discounts. The term does not include any charge for food, prepared food, and alcoholic beverages subject to tax under this Article.
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(9a)	Entertainment activity. – An activity listed in this subdivision:
a.	A live performance or other live event of any kind, the purpose of which is for entertainment.
b.	A movie, motion picture, or film.
c.	A museum, a cultural site, a garden, an exhibit, a show, or a similar attraction.
d.	A guided tour at any of the activities listed in sub‑subdivision c. of this subdivision.
…."
SECTION 4.3.(b)  G.S. 105‑164.4G reads as rewritten:
"§ 105‑164.4G.  Entertainment activity.

	

	

	
(b)	Tax. – The gross receipts derived from an admission charge to an entertainment activity are taxed at the general rate set in G.S. 105‑164.4. The tax is due and payable by the retailer in accordance with G.S. 105‑164.16. For purposes of the tax imposed by this section, the retailer is the applicable person listed below:
(1)	The operator of the venue where the entertainment activity occurs, unless the retailer and the admission facilitator have a contract between them allowing for dual remittance, as provided in subsection (d) of this section.
(2)	The person that provides the entertainment and that receives admission charges directly from a purchaser.
(3)	A person other than a person listed in subdivision (1) or (2) of this subsection that receives gross receipts derived from an admission charge sold at retail.
(c)	Admission Facilitator. – An admission facilitator must report to the retailer with whom it has a contract the admission charge a consumer pays to the admission facilitator for an entertainment activity. The admission facilitator must send the retailer the portion of the gross receipts the admission facilitator owes the retailer and the tax due on the gross receipts derived from an admission charge no later than 10 days after the end of each calendar month. An admission facilitator that does not send the retailer the tax due on the gross receipts derived from an admission charge is liable for the amount of tax the admission facilitator fails to send to the retailer. An admission facilitator is not liable for tax sent to a retailer but not remitted by the retailer to the Secretary. Tax payments received by a retailer from an admission facilitator are held in trust by the retailer for remittance to the Secretary. A retailer that receives a tax payment from an admission facilitator must remit the amount received to the Secretary. A retailer is not liable for tax due but not received from an admission facilitator. The requirements imposed by this subsection on a retailer and an admission facilitator are considered terms of the contract between the retailer and the admission facilitator.
(d)	Dual Remittance. – The tax due on the gross receipts derived from an admission charge may be partially reported and remitted to the operator of the venue for remittance to the Department and partially reported and remitted by the admission facilitator directly to the Department. The portion of the tax not reported and remitted to the operator of the venue must be reported and remitted directly by the admission facilitator to the Department. An admission facilitator that elects to remit tax under the dual remittance option is required to obtain a certificate of registration in accordance with G.S. 105‑164.29. An admission facilitator is subject to the provisions of Article 9 of this Chapter.
…."
SECTION 4.4.(a)  G.S. 105‑164.3 reads as rewritten:
"§ 105‑164.3.  Definitions.
The following definitions apply in this Article:
…
(38c)	Service contract facilitator. – A person who contracts with the obligor of a service contract to market the service contract and accepts payment from the purchaser for the service contract.
…."
SECTION 4.4.(b)  G.S. 105‑164.4I reads as rewritten:
"§ 105‑164.4I.  Service contracts.
(a)	Tax. – The sales price of or the gross receipts derived from a service contract or the renewal of a service contract sold at retail is subject to the general rate of tax set in G.S. 105‑164.4 and is sourced in accordance with the sourcing principles in G.S. 105‑164.4B. The retailer of a service contract is required to collect the tax due at the time of the retail sale of the contract and is liable for payment of the tax. The tax is due and payable in accordance with G.S. 105‑164.16.
The retailer of a service contract is the applicable person listed below:
(1)	When a service contract is sold at retail to a purchaser by the obligor under the contract, the obligor is the retailer.
(2)	When a service contract is sold at retail to a purchaser by a service contract facilitator on behalf of the obligor under the contract, the service contract facilitator is the retailer unless the provisions of subdivision (3) of this subsection apply.
(3)	When a service contract is sold at retail to a purchaser by a service contract facilitator on behalf of the obligor under the contract and there is an agreement between the service contract facilitator and the obligor that states the obligor will be liable for the payment of the tax, the obligor is the retailer. The service contract facilitator must send the retailer the tax due on the sales price of or gross receipts derived from the service contract no later than 10 days after the end of each calendar month. A service contract facilitator that does not send the retailer the tax due on the sales price or gross receipts is liable for the amount of tax the service contract facilitator fails to send. A service contract facilitator is not liable for tax sent to a retailer but not remitted by the retailer to the Secretary. Tax payments received by a retailer from a service contract facilitator are held in trust by the retailer for remittance to the Secretary. A retailer that receives a tax payment from a service contract facilitator must remit the amount received to the Secretary. A retailer is not liable for tax due but not received from a service contract facilitator. The requirements imposed by this subdivision on a retailer and a service contract facilitator are considered terms of the agreement between the retailer and the service contract facilitator.
…
	"
SECTION 4.5.(a)  G.S. 105‑164.22 reads as rewritten:
"§ 105‑164.22.  Recordkeeping requirements, inspection authority, and effect of failure to keep records.
(a)	Recordkeeping Generally. – Retailers, wholesale merchants, facilitators, real property contractors, and consumers must keep records that establish their tax liability under this Article. The Secretary or a person designated by the Secretary may inspect these records at any reasonable time during the day.
(b)	Retailers. – A retailer's records must include records of the retailer's gross income, gross sales, net taxable sales, all items purchased for resale, and any reports or records related to transactions with a facilitator with whom it has a contract as provided in this Article. Failure of a retailer to keep records that establish a sale is exempt under this Article subjects the retailer to liability for tax on the sale.
(c)	Wholesale Merchants. – A wholesale merchant's records must include a bill of sale for each customer that contains the name and address of the purchaser, the date of the purchase, the item purchased, and the sales price of the item. A wholesale merchant must also keep records that establish a sale is exempt from tax and any reports or records related to transactions with a facilitator with whom it has a contract as provided in this Article. Failure of a wholesale merchant to keep records that establish a sale is exempt from tax under this Article subjects the wholesale merchant to liability for tax at the rate that applies to the retail sale of the item.
(d)	Facilitators. – A facilitator's records must include records of the facilitator's gross income, gross sales, net taxable sales, all items purchased for resale, any reports or records related to transactions with a retailer with whom it has a contract as provided in this Article, and any other records that establish its tax liability. Failure of a facilitator to keep records that establish a sale is exempt from tax under this Article subjects the facilitator to liability for tax on the sale.
(e)	Real Property Contractors. – A real property contractor's records must include substantiation that a transaction is a real property contract or a mixed transaction contract pursuant to G.S. 105‑164.4H(a1). Failure of a real property contractor to keep records that establish a real property contract under this Article subjects the real property contractor to liability for tax on the sale.
(f)	Consumers. – A consumer's records must include an invoice or other statement of the purchase price of an item the consumer purchased from inside or outside the State and any sales and use tax paid thereon. Failure of the consumer to keep these records subjects the consumer to liability for tax on the purchase price of the item, as determined by the Secretary."
SECTION 4.5.(b)  G.S. 105‑164.3, as amended by Section 1 of this Part, reads as rewritten:
"§ 105‑164.3.  Definitions.
The following definitions apply in this Article:
…
(1d)	Advertising and promotional direct mail. – Printed material that meets the definition of "direct mail" and the primary purpose of which is to attract public attention to an item, person, business, or organization, or to attempt to sell, popularize, or secure financial support for an item, person, business, or organization.
(1e)	Affiliate. – Defined in G.S. 105‑130.2.
…
(1g)	Analytical services. – Testing laboratories that are included in national industry 541380 of NAICS or medical laboratories that are included in national industry 621511 of NAICS.
(1h)	Ancillary service. – A service associated with or incidental to the provision of a telecommunications service. The term includes detailed communications billing, directory assistance, vertical service, and voice mail service. A vertical service is a service, such as call forwarding, caller ID, three‑way calling, and conference bridging, that allows a customer to identify a caller or manage multiple calls and call connections.
(1i)	Audio work. – A series of musical, spoken, or other sounds, including a ringtone.
(1j)	Audiovisual work. – A series of related images and any sounds accompanying the images that impart an impression of motion when shown in succession.
(1k)Aviation gasoline. – Defined in G.S. 105‑449.60.
(1l)	Bundled transaction. – A retail sale of two or more distinct and identifiable items, at least one of which is taxable and one of which is nontaxable, for one nonitemized price. The term does not apply to real property or services to real property. Items are not sold for one nonitemized price if an invoice or another sales document made available to the purchaser separately identifies the price of each item. A bundled transaction does not include the retail sale of any of the following:
a.	An item and any packaging that accompanies the item and is exempt under G.S. 105‑164.13(23).
b.	A sale of two or more items whose combined price varies, or is negotiable, depending on the items the purchaser selects.
c.	A sale of an item accompanied by a transfer of another item with no additional consideration.
d.	An item and the delivery or installation of the item.
e.	An item and any service necessary to complete the sale.
(1m)	Business. – An activity a person engages in or causes another to engage in with the object of gain, profit, benefit, or advantage, either direct or indirect. The term does not include an occasional and isolated sale or transaction by a person who does not claim to be engaged in business.
(1n)	Cable service. – The one‑way transmission to subscribers of video programming or other programming service and any subscriber interaction required to select or use the service.
…
(2c)	Capital improvement. – One or more of the following:
…
k.	An addition or alteration to real property that is permanently affixed or installed to real property and is not an activity listed in subdivision (33m) of this section as repair, maintenance, and installation services.
…
(9)	Engaged in business. – Any of the following:
a.	Maintaining, occupying, or using permanently or temporarily, directly or indirectly, or through a subsidiary or agent, by whatever name called, any office, place of distribution, sales or sample room, warehouse or storage place, or other place of business in this State, or permanently or temporarily, directly or through a subsidiary, having any representative, agent, sales representative, marketplace facilitator subject to the requirements of G.S. 105‑164.4J, or solicitor operating or transacting business by mobile phone application or other applications in this State. The fact that any corporate retailer, agent, or subsidiary engaged in business in this State may not be legally domesticated or qualified to do business in this State is immaterial.
…
e.	Making marketplace facilitated sales subject to the requirements of G.S. 105‑164.4J.
…
(9e)	Facilitator. – An accommodation facilitator, an admission facilitator, or a service contract facilitator.
…
(20e)	Mixed transaction contract. – A contract that includes both a real property contract for a capital improvement and repair, maintenance, and installation services for real property that are not related to the capital improvement.
…
(33j)	Remote sale. – A sale of an item ordered by mail, telephone, Internet, mobile phone application, or another method by a retailer who receives the order in another state and delivers the item or makes it accessible to a person in this State or causes the item to be delivered or made accessible to a person in this State or performs a service sourced to this State. It is presumed that a resident of this State who makes an order was in this State at the time the order was made.
…
(33m)	Repair, maintenance, and installation services. – The term includes the activities listed in this subdivision and applies to tangible personal property, motor vehicles, certain digital property, and real property. The term does not include a service used to fulfill a real property contract taxed in accordance with G.S. 105‑164.4H. The included activities are:
…
(35)	Retailer. – Any of the following persons:
a.	A person engaged in business of making sales at retail, offering to make sales at retail, or soliciting sales at retail of items sourced to this State. When the Secretary finds it necessary for the efficient administration of this Article to regard any sales representatives, solicitors, representatives, consignees, peddlers, or truckers as agents of the dealers, distributors, consignors, supervisors, employers, or persons under whom they operate or from whom they obtain the items sold by them regardless of whether they are making sales on their own behalf or on behalf of these dealers, distributors, consignors, supervisors, employers, or persons, the Secretary may so regard them and may regard the dealers, distributors, consignors, supervisors, employers, or persons as "retailers" for the purpose of this Article.
b.	A person, other than a real property contractor, engaged in business of delivering, erecting, installing, or applying tangible personal property or digital property for use in this State.
c.	A person engaged in business of making a remote sale, if one of the conditions listed in G.S. 105‑164.8(b) is met.
d.	A person required to collect the State tax levied under this Article or the local taxes levied under Subchapter VIII of this Chapter and under Chapter 1096 of the 1967 Session Laws.
e.	A marketplace facilitator that is subject to the requirements of G.S. 105‑164.4J or a facilitator that is required to collect and remit the tax under this Article.
…."
SECTION 4.6.  There is no obligation to collect the sales and use tax required by this Part retroactively.
SECTION 4.7.  If any provision of this Part, or the application of any provision to a person or circumstance, is held to be unconstitutional, then the remainder of this Part, and the application of the provisions to any person or circumstance, shall not be affected thereby.
SECTION 4.8.  The Revisor of Statutes is authorized to renumber the subdivisions of G.S. 105‑164.3 to ensure that the subdivisions are listed in alphabetical order and in a manner that reduces the current use of alphanumeric designations, to make conforming changes, and to reserve sufficient space to accommodate future additions to the statutory section.
SECTION 4.9.  This Part becomes effective September 1, 2019, and applies to sales occurring on or after that date.

part v. other business tax changes
SECTION 5.1.(a)  G.S. 105‑130.5(b) reads as rewritten:
"(b)	The following deductions from federal taxable income shall be made in determining State net income:
…
(31)	To the extent included in federal taxable income, the amount received by a taxpayer as an economic incentive pursuant to G.S. 143B‑437.012 or Part 2G or 2H of Article 10 of Chapter 143B of the General Statutes."
SECTION 5.1.(b)  G.S. 105‑153.5(b) reads as rewritten:
"(b)	Other Deductions. – In calculating North Carolina taxable income, a taxpayer may deduct from the taxpayer's adjusted gross income any of the following items that are included in the taxpayer's adjusted gross income:
…
(14)	The amount received by a taxpayer as an economic incentive pursuant to G.S. 143B‑437.012 or Part 2G or 2H of Article 10 of Chapter 143B of the General Statutes."
SECTION 5.1.(c)  This section is effective for taxable years beginning on or after January 1, 2019, and applies to amounts received by a taxpayer pursuant to an economic incentive agreement entered into on or after that date.
SECTION 5.2.  G.S. 105‑129.110 reads as rewritten:
"§ 105‑129.110.  Sunset.
This Article expires for qualified rehabilitation expenditures and rehabilitation expenses incurred on or after January 1, 2024. For qualified rehabilitation expenditures and rehabilitation expenses incurred prior to January 1, 2024, this Article expires for property not placed in service by January 1, 2032."
SECTION 5.3.(a)  G.S. 105‑164.13(11b) reads as rewritten:
"(11b)	Sales of aviation gasoline and jet fuel to an interstate air business for use in a commercial aircraft. For purposes of this subdivision, the term "commercial aircraft" has the same meaning as defined in subdivision (45a) of this section. This exemption also applies to aviation gasoline and jet fuel purchased for use in a commercial aircraft in interstate or foreign commerce by a person whose primary business is scheduled passenger air transportation. This subdivision expires January 1, 2024."
SECTION 5.3.(b)  G.S. 105‑164.13(65) and (65a) read as rewritten:
"(65)	This subdivision expires January 1, 2024. Sales of the following to a professional motorsports racing team or a related member of a team for use in competition in a sanctioned race series:
a.	The sale, lease, or rental of an engine.
b.	The sales price of or gross receipts derived from a service contract on, or repair, maintenance, and installation services for, a transmission, an engine, rear‑end gears, and any other item that is purchased, leased, or rented and that is exempt from tax under this subdivision or that is allowed a sales tax refund under G.S. 105‑164.14A(a)(5).
c.	The gross receipts derived from an agreement to provide an engine to a professional motorsports racing team or related member of a team for use in competition in a sanctioned race series, where such agreement does not meet the definition of a "service contract" as defined in G.S. 105‑164.3 but may meet the definition of the term "lease or rental" as defined in G.S. 105‑164.3.
(65a)	An engine or a part to build or rebuild an engine for the purpose of providing an engine under an agreement to a professional motorsports racing team or a related member of a team for use in competition in a sanctioned race series. This subdivision expires January 1, 2024."
SECTION 5.3.(c)  G.S. 105‑164.14A(a)(4) and (a)(5) read as rewritten:
"(4)	Motorsports team or sanctioning body. – A professional motorsports racing team, a motorsports sanctioning body, or a related member of such a team or body is allowed a refund of the sales and use tax paid by it in this State on aviation gasoline or jet fuel that is used to travel to or from a motorsports event in this State, to travel to a motorsports event in another state from a location in this State, or to travel to this State from a motorsports event in another state. For purposes of this subdivision, a "motorsports event" includes a motorsports race, a motorsports sponsor event, and motorsports testing. This subdivision is repealed for purchases made on or after January 1, 2024.
(5)	Professional motorsports team. – A professional motorsports racing team or a related member of a team is allowed a refund of fifty percent (50%) of the sales and use tax paid by it in this State on tangible personal property, other than tires or accessories, that comprises any part of a professional motorsports vehicle. For purposes of this subdivision, "motorsports accessories" includes instrumentation, telemetry, consumables, and paint. This subdivision is repealed for purchases made on or after January 1, 2024."
SECTION 5.4.  Except as otherwise provided, this Part is effective when it becomes law.

part vi. facilitate critical infrastructure disaster relief
SECTION 6.1.  Part 8 of Article 166A of the General Statutes is amended by adding a new section to read:
"§ 166A‑19.70A.  Facilitate critical infrastructure disaster relief.
(a)	Purpose. – The State finds that it is appropriate to exclude nonresident businesses and nonresident employees who temporarily come to this State at the request of a critical infrastructure company solely to perform disaster‑related work during a disaster response period from the following tax and regulatory requirements:
(1)	Corporate and individual income tax, as provided under G.S. 105‑130.1 and G.S. 105‑153.2.
(2)	Franchise tax, as provided under G.S. 105‑114.
(3)	Unemployment tax, as provided under G.S. 96‑1(b)(12).
(4)	Certificate of Authority from the Secretary of State to transact business in this State, as provided under G.S. 55‑15‑01(d) and G.S. 57D‑1‑24(d).
(b)	Definitions. – In addition to the definitions in G.S. 166A‑19.3, the following definitions apply in this section:
(1)	Corporation. – Defined in G.S. 105‑130.2.
(2)	Critical infrastructure. – Property and equipment owned or used by a critical infrastructure company for utility or communications transmission services provided to the public in the State. Examples of critical infrastructure include communications networks, electric generation, transmission and distribution systems, natural gas transmission and distribution systems, water pipelines, and related support facilities. Related support facilities may include buildings, offices, lines, poles, pipes, structures, and equipment.
(3)	Critical infrastructure company. – One of the following:
a.	A registered public communications provider.
b.	A registered public utility.
(4)	Disaster‑related work. – Repairing, renovating, installing, building, or performing services on critical infrastructure that has been damaged, impaired, or destroyed as a result of a disaster or emergency in an area covered by the disaster declaration.
(5)	Disaster response period. – A period that begins ten days prior to the first day of a disaster declaration and expires on the earlier of the following:
a.	Sixty days following the expiration of the disaster declaration, as provided under G.S. 166A‑19.21(c).
b.	One hundred eighty days following the issuance of the disaster declaration.
(6)	Employee. – Defined in G.S. 105‑163.1.
(7)	Nonresident business. – An entity that has not been required to file an income or franchise tax return with the State for three years prior to the disaster response period, other than those arising from the performance of disaster‑related work during a tax year prior to the enactment of this section, and that meets one or more of the following conditions:
a.	Is a nonresident entity.
b.	Is a nonresident individual who owns an unincorporated business as a sole proprietor.
(8)	Nonresident employee. – A nonresident individual who is one of the following:
a.	An employee of a nonresident business.
b.	An employee of a critical infrastructure company who is temporarily in this State to perform disaster‑related work during a disaster response period.
(9)	Nonresident entity. – Defined in G.S. 105‑163.1.
(10)	Nonresident individual. – Defined in G.S. 105‑153.3.
(11)	Registered public communications provider. – A corporation doing business in this State prior to the disaster declaration that provides the transmission to the public of one or more of the following:
a.	Broadband.
b.	Mobile telecommunications.
c.	Telecommunications.
d.	Wireless Internet access.
(12)	Registered public utility. – A corporation doing business in this State prior to the disaster declaration that is subject to the control of one or more of the following entities:
a.	North Carolina Utilities Commission.
b.	North Carolina Rural Electrification Authority.
c.	Federal Communications Commission.
d.	Federal Energy Regulatory Commission.
(c)	Critical Infrastructure Company Notification. – A critical infrastructure company must provide notification to the Department of Revenue within 90 days of the expiration of the disaster response period. The notification must be in the form and manner required by the Department. The notification must include the following:
(1)	A list of all nonresident businesses who performed disaster‑related work in this State during a disaster response period at the request of the critical infrastructure company.
(2)	A list of nonresident employees who performed disaster‑related work in this State for the critical infrastructure company during a disaster response period. The notification must include the amount of compensation paid to the nonresident employee performing disaster‑related work in this State.
(d)	Nonresident Business Notification. – A nonresident business must provide notification to the Department of Revenue within 90 days of the date the nonresident business concludes its disaster‑related work in the State. The notification must be in the form and manner required by the Department. The notification must include a list of nonresident employees who performed disaster‑related work in this State during a disaster response period, along with the amount of compensation paid to the nonresident employee performing disaster‑related work in this State. Failure to submit a timely notification forfeits the relief provided by this section for the nonresident business.
(e)	Limitation. – The intent of this section is to provide relief to nonresident businesses and nonresident employees who would not otherwise be subject to this State's tax and regulatory requirements if they had not performed disaster‑related work during the disaster response period. The relief provided under this section does not apply to any tax year that is part of the disaster response period if the nonresident business or nonresident employee continues to perform disaster‑related work following the end of the disaster response period. The relief provided under this section does not apply to a tax year that is part of the disaster response period if the nonresident business or nonresident employee is required to file an income tax return for that tax year with the Department of Revenue for reasons other than the performance of disaster‑related work."
SECTION 6.2.(a)  G.S. 55‑15‑01 is amended by adding a new subsection to read:
"(d)	The following foreign corporations are not required to obtain a certificate of authority from the Secretary of State:
(1)	A nonresident business solely performing disaster‑related work in this State during a disaster response period at the request of a critical infrastructure company. The definitions and provisions of G.S. 166A‑19.70A apply to this subdivision.
(2)	A person issued a temporary license by the Department of Revenue under G.S. 105‑449.69A to import, export, distribute, or transport motor fuel in this State in response to a disaster declaration."
SECTION 6.2.(b)  G.S. 57D‑1‑24 is amended by adding a new subsection to read:
"§ 57D‑1‑24.  Certificate of existence; certificate of authorization.
…
(d)	A nonresident business solely performing disaster‑related work in this State during a disaster response period at the request of a critical infrastructure company is not required to obtain a certificate of authority from the Secretary of State. The definitions and provisions of G.S. 166A‑19.70A apply to this subdivision."
SECTION 6.3.  G.S. 96‑1(b)(12) reads as rewritten:
"(b)	Definitions. – The following definitions apply in this Chapter:
…
(12)	Employment. – Defined in section 3306 of the Code, with the following additions and exclusions:
…
b.	Exclusions. – The term excludes all of the following:
…
5.	Service performed by a nonresident employee for a nonresident business performing disaster‑related work in this State during a disaster response period at the request of a critical infrastructure company. The definitions and provisions of G.S. 166A‑19.70A apply to this exclusion."
SECTION 6.5.  G.S. 105‑114 is amended by adding a new subsection to read:
"(d)	Critical Infrastructure Disaster Relief. – A nonresident business that solely performs disaster‑related work in this State during a disaster response period at the request of a critical infrastructure company is not considered to be doing business in this State for purposes of this Article. The definitions and provisions in G.S. 166A‑19.70A apply in this subsection."
SECTION 6.6.(a)  G.S. 105‑130.1 reads as rewritten:
"§ 105‑130.1.  Purpose.
(a)	Purpose. – The general purpose of this Part is to impose a tax for the use of the State government upon the net income of every domestic corporation and of every foreign corporation doing business in this State.
The tax imposed upon the net income of corporations in this Part is in addition to all other taxes imposed under this Subchapter.
(b)	Critical Infrastructure Disaster Relief. – A nonresident business that solely performs disaster‑related work in this State during a disaster response period at the request of a critical infrastructure company is not considered to be doing business in this State for purposes of this Part. The definitions and provisions in G.S. 166A‑19.70A apply in this subsection."
SECTION 6.6.(b)  G.S. 105‑130.5(a) is amended by adding a new subdivision to read:
"(a)	The following additions to federal taxable income shall be made in determining State net income:
…
(30)	Payments made to an affiliate or subsidiary that is not subject to tax under this Article pursuant to the exceptions for critical infrastructure disaster relief provided under G.S. 166A‑19.70A, to the extent the payments are deducted in determining federal taxable income. The definitions and provisions of G.S. 166A‑19.70A apply to this subdivision."
SECTION 6.7.(a)  G.S. 105‑131.7 is amended by adding a new subsection to read:
"§ 105‑131.7.  Returns; shareholder agreements; mandatory withholding.
…
(f)	Critical Infrastructure Disaster Relief. – An S Corporation that is not doing business in this State because it is a nonresident business performing disaster‑related work during a disaster response period at the request of a critical infrastructure company is not required to file a return with the Department. However, the corporation must furnish to each shareholder who would be entitled to share in the corporation income any information necessary for that person to properly file a State income tax return. The definitions and provisions in G.S. 166A‑19.70A concerning disaster‑related work apply to this subsection."
SECTION 6.7.(b)  G.S. 105‑154(c) reads as rewritten:
"§ 105‑154.  Information at the source returns.
…
(c)	Information Returns of Partnerships. – A partnership doing business in this State and required to file a return under the Code shall file an information return with the Secretary. A partnership that the Secretary believes to be doing business in this State and to be required to file a return under the Code shall file an information return when requested to do so by the Secretary. The information return shall contain all information required by the Secretary. It shall state specifically the items of the partnership's gross income, the deductions allowed under the Code, each partner's distributive share of the partnership's income, and the adjustments required by this Part. A partner's distributive share of partnership net income includes any guaranteed payments made to the partner. The information return shall also include the name and address of each person who would be entitled to share in the partnership's net income, if distributable, and the amount each person's distributive share would be. The information return shall be signed by one of the partners under affirmation in the form required by the Secretary.
A partnership that files an information return under this subsection shall furnish to each person who would be entitled to share in the partnership's net income, if distributable, any information necessary for that person to properly file a State income tax return. The information shall be in the form prescribed by the Secretary and must be furnished on or before the due date of the information return.
A partnership that is not doing business in this State because it is a nonresident business performing disaster‑related work during a disaster response period at the request of a critical infrastructure company is not required to file an information return with the Secretary. However, the partnership must furnish to each person who would be entitled to share in the partnership's net income, if distributable, any information necessary for that person to properly file a State income tax return. The definitions and provisions in G.S. 166A‑19.70A apply to this paragraph."
SECTION 6.8.(a)  G.S. 105‑153.2 reads as rewritten:
"§ 105‑153.2.  Purpose.
The general purpose of this Part is to impose a tax for the use of the State government upon the taxable income collectible annually:
(1)	Of every resident of this State.
(2)	Of every nonresident individual deriving income from North Carolina sources attributable to the ownership of any interest in real or tangible personal property in this State, deriving income from a business, trade, profession, or occupation carried on in this State, or deriving income from gambling activities in this State. This subdivision does not apply to a nonresident business or a nonresident employee who solely derives income from North Carolina sources attributable to a business, trade, profession, or occupation carried on in this State to perform disaster‑related work during a disaster response period at the request of a critical infrastructure company; the definitions and provisions in G.S. 166A‑19.70A apply to this subdivision."
SECTION 6.8.(b)  G.S. 105‑153.8(a) reads as rewritten:
"(a)	Who Must File. – The following individuals must file with the Secretary an income tax return under affirmation:
(1)	Every resident who for the taxable year has gross income under the Code that exceeds the standard deduction amount provided in G.S. 105‑153.5(a)(1).
(2)	Every nonresident individual who meets all of the following requirements:
a.	Receives during the taxable year gross income that is derived from North Carolina sources and is attributable to the ownership of any interest in real or tangible personal property in this State, is derived from a business, trade, profession, or occupation carried on in this State, or is derived from gambling activities in this State. This sub‑subdivision does not apply to a nonresident business or a nonresident employee who solely derives income from North Carolina sources attributable to a business, trade, profession, or occupation carried on in this State to perform disaster‑related work during a disaster response period at the request of a critical infrastructure company; the definitions and provisions in G.S. 166A‑19.70A apply to this sub‑subdivision.
b.	Has gross income under the Code that exceeds the applicable standard deduction amount provided in G.S. 105‑153.5(a)(1).
(3)	Any individual whom the Secretary believes to be liable for a tax under this Part, when so notified by the Secretary and requested to file a return."
SECTION 6.9.(a)  G.S. 105‑163.1(13) reads as rewritten:
"§ 105‑163.1.  Definitions.
The following definitions apply in this Article:
…
(13)	Wages. – The term has the same meaning as in section 3401 of the Code, except the term does not include amounts paid to a nonresident employee for a business, trade, profession, or occupation carried on in this State to perform disaster‑related work during a disaster response period at the request of a critical infrastructure company. The definitions and provisions of G.S. 166A‑19.70A apply to this subdivision.
…."
SECTION 6.9.(b)  G.S. 105‑163.3(b) is amended by adding a new subdivision to read:
"(b)	Exemptions. – The withholding requirement does not apply to the following:
…
(5)	Compensation paid by a nonresident business or a critical infrastructure company to an ITIN contractor who is a nonresident individual for a business, trade, profession, or occupation carried on in this State to perform disaster‑related work during a disaster response period at the request of a critical infrastructure company. The definitions and provisions of G.S. 166A‑19.70A apply to this subdivision."
SECTION 6.9.(c)  G.S. 105‑163.7(b) reads as rewritten:
"(b)	Informational Return to Secretary. – Every employer shall annually file an informational return with the Secretary that contains the information given on each of the employer's written statements to an employee. The Secretary may require additional information to be included on the informational return, provided the Secretary has given a minimum of 90 days' notice of the additional information required. The informational return is due on or before January 31 of the succeeding year and must be filed in an electronic format as prescribed by the Secretary. If the employer terminates its business or permanently ceases paying wages during the calendar year, the informational return must be filed within 30 days of the last payment of remuneration. The informational return required by this subsection is in lieu of the report required by G.S. 105‑154.
An employer that is not doing business in this State because it is a nonresident business performing disaster‑related work during a disaster response period at the request of a critical infrastructure company is not required to file an information return with the Secretary. However, the employer must furnish to an employee, upon request, any information necessary for that person to properly file a State income tax return. The definitions and provisions in G.S. 166A‑19.70A apply to this paragraph."
SECTION 6.10.  Part 2 of Article 36B of Chapter 105 of the General Statutes is amended by adding a new section to read:
"§ 105‑449.69A.  Temporary license during disaster response period.
(a)	Temporary License. – The Secretary may grant a temporary license to an applicant to import, export, distribute, or transport motor fuel in this State in response to a disaster declaration. The term "disaster declaration" has the same meaning as defined in G.S. 166A‑19.3. The temporary license expires upon the expiration of the disaster declaration. A temporary license issued under this section may not be renewed or a new temporary license granted if the licensee failed to file the required returns or make payments of the required taxes.
(b)	Requirements. – To obtain a temporary license, a person must file an application with the Secretary on a form prescribed by the Secretary within seven calendar days from the date of the disaster declaration. An application must include all of the following information:
(1)	The legal name of the business and the trade name, if applicable, under which the person will transact business within the State.
(2)	The federal identification number of the business or, if such number is unavailable, the Social Security number of the owner.
(3)	The location, with a street number address, of the principal office or place of business and the location where records will be made available for inspection.
(4)	Any other information required by the Secretary.
(c)	Exceptions. – The Secretary may issue a temporary license under this section as an importer, exporter, distributor, or transporter without requiring the applicant to file with the Secretary a bond or an irrevocable letter of credit, as otherwise required by G.S. 105‑449.72, and without requiring the applicant to be authorized to transact business in this State with the Secretary of State."
SECTION 6.11.  This Part is effective when it becomes law and applies to disaster declarations on or after that date.

part vii. Effective date
SECTION 7.  Except as otherwise provided, this act is effective when it becomes law.