GENERAL ASSEMBLY OF NORTH CAROLINA
SESSION 2011
H 1
HOUSE BILL 1026
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Short Title: Revenue Laws Tech., Clarifying, & Admin Chngs. |
(Public) |
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Sponsors: |
Representatives Howard and Starnes (Primary Sponsors). For a complete list of Sponsors, see Bill Information on the NCGA Web Site. |
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Referred to: |
Finance. |
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May 22, 2012
A BILL TO BE ENTITLED
AN ACT to make technical, clarifying, and administrative changes to the tax and related laws.
The General Assembly of North Carolina enacts:
part i. technical changes
SECTION 1.1. 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:
…
(14) The amount by which the
basis of a depreciable asset is required to be reduced under the Code for
federal tax purposes because of a tax credit allowed against the corporation's
federal income tax liability. liability or because of a grant allowed
under section 1603 of the American Recovery and Reinvestment Tax Act of 2009,
P.L. 111-3. This deduction may be claimed only in the year in which the Code
requires that the asset's basis be reduced. In computing gain or loss on the
asset's disposition, this deduction shall be considered as depreciation.
…."
SECTION 1.2. G.S. 105-164.13 reads as rewritten:
"§ 105-164.13. Retail sales and use tax.
The sale at retail and the use, storage, or consumption in this State of the following tangible personal property, digital property, and services are specifically exempted from the tax imposed by this Article:
…
(11) Any of the following fuel:
a. Motor fuel,
as defined in G.S. 105 449.60, taxed in Article 36C of this
Chapter, except motor fuel for which a refund of the per gallon excise tax
is allowed under G.S. 105 449.105A or G.S. 105 449.107.
b. Alternative fuel taxed under Article 36D of this Chapter, unless a refund of that tax is allowed under G.S. 105 449.107.
…
(49) Installation charges when the charges are separately stated on the invoice or similar billing document given to the purchaser at the time of sale.
(49a) Delivery charges for delivery of
direct mail if the charges are separately stated on an invoice or similar
billing document given to the purchaser.purchaser at the time of
sale.
…."
SECTION 1.3. The title of Article 5F of Chapter 105 of the General Statutes reads as rewritten:
"Article 5F.
Manufacturing Fuel and Certain Machinery and
Equipment."
SECTION 1.4. The catchline of G.S. 105-187.70, as enacted by Section 6 of S.L. 2011-122, reads as rewritten:
"§
105-187.70. Department comply with Article 43 of Chapter
62A of the General Statutes.
SECTION 1.5.(a) G.S. 105-228.90(b)(1b) reads as rewritten:
"(1b) Code. - The Internal Revenue Code
as enacted as of January 1, 2011, January 1, 2012, including any
provisions enacted as of that date that become effective either before or after
that date."
SECTION 1.5.(b) This section is effective when it becomes law. Notwithstanding subsection (a) of this section, any amendments to the Internal Revenue Code enacted after January 1, 2011, that increase North Carolina taxable income for the 2011 taxable year become effective for taxable years beginning on or after January 1, 2012.
SECTION 1.6. G.S. 105-263(a) reads as rewritten:
"(a) Mailed
Document. - Section Sections 7502 and 7503 of the Code governs
govern when a return, report, payment, or any other document that is
mailed to the Department is timely filed."
SECTION 1.7. G.S. 105-277.1F(a)(1) reads as rewritten:
"(a) Scope. - This section applies to the following deferred tax programs:
(1) G.S. 105-275(12)f.,
real property held for future transfer to government unit for conservation
purposes.G.S. 105-275(12), real property owned by a nonprofit
corporation held as a protected natural area."
SECTION 1.8. G.S. 105-468 reads as rewritten:
"§ 105-468. Scope of use tax.
The use tax authorized by this Article is a tax at the rate of one percent (1%) of the cost price of each item or article of tangible personal property that is not sold in the taxing county but is used, consumed, or stored for use or consumption in the taxing county. The tax applies to the same items that are subject to tax under G.S. 105-467.
Every retailer who is engaged in business in this State and in the taxing county and is required to collect the use tax levied by G.S. 105-164.6 shall collect the one percent (1%) use tax when the property is to be used, consumed, or stored in the taxing county. The use tax contemplated by this section shall be levied against the purchaser, and the purchaser's liability for the use tax shall be extinguished only upon payment of the use tax to the retailer, where the retailer is required to collect the tax, or to the Secretary, where the retailer is not required to collect the tax.
Where a local sales or use tax has been paid with respect to
tangible personal property by the purchaser, either purchaser in
another taxing county within the State, or where a local sales or use tax
was due and has been paid in a taxing jurisdiction outside the State where
the purpose of the tax is similar in purpose and intent to the tax which may be
imposed pursuant to this Article, the tax paid may be credited against the tax
imposed under this section by a taxing county upon the same property. If the
amount of sales or use tax so paid is less than the amount of the use tax due
the taxing county under this section, the purchaser shall pay to the Secretary
an amount equal to the difference between the amount so paid in the other
taxing county or jurisdiction and the amount due in the taxing county. The
Secretary may require such proof of payment in another taxing county or
jurisdiction as is deemed to be necessary. The use tax levied under this
Article is not subject to credit for payment of any State sales or use tax not
imposed for the benefit and use of counties and municipalities. No credit shall
be given under this section for sales or use taxes paid in a taxing
jurisdiction outside this State if that taxing jurisdiction does not grant
similar credit for sales taxes paid under this Article."
SECTION 1.9. G.S. 160A-536(e)(2) reads as rewritten:
"(2) The city must receive
a petition signed by at least sixty percent (60%) of the lot owners of the
owners' association requesting the city to establish a municipal service
district for the purpose of paying the costs related to converting private
residential streets to public streets. The executive board of an owners'
association for which the city has received a petition under this subsection
may transfer street-related common elements to the city, notwithstanding the
provisions of either the North Carolina Planned Community Act in Chapter
47F of the General Statutes, Statutes or the North Carolina
Condominium Act in Chapter 47C of the General Statutes, or related articles
of declaration, deed covenants, or any other similar document recorded with the
Register of Deeds."
SECTION 1.10.(a) G.S. 20-63 reads as rewritten:
"(b1) (Effective until July 1, 2016) The following special registration plates do not have to be a "First in Flight" plate as provided in subsection (b) of this section. The design of the plates that are not "First in Flight" plates must be approved by the Division and the State Highway Patrol for clarity and ease of identification. When the Division registers a vehicle or renews the registration of a vehicle on or after July 1, 2015, the Division must send the owner a replacement special license plate in a standardized format in accordance with subsection (b) of this section and G.S. 20-79.4(a3).
(1) Friends of the Great Smoky Mountains National Park.
(2) Rocky Mountain Elk Foundation.
(3) Blue Ridge Parkway Foundation.
(4) Friends of the Appalachian Trail.
(5) NC Coastal Federation.
(6) In God We Trust.
(7) Stock Car Racing Theme.
(8) Buddy Pelletier Surfing Foundation.
(9) Guilford Battleground Company.
(10) National Wild Turkey Federation.
(11) North Carolina Aquarium Society.
(12) First in Forestry.
(13) North Carolina Wildlife Habitat Foundation.
(14) NC Trout Unlimited.
(15) Ducks Unlimited.
(16) Lung Cancer Research.
(17) NC State Parks.
(18) Support Our Troops.
(19) US Equine Rescue League.
(20) Fox Hunting.
(21) Back Country Horsemen of North Carolina.
(22) Hospice Care.
(23) Home Care and Hospice.
(24) NC Tennis Foundation.
(25) AIDS Awareness.
(26) Donate Life.
(27) Farmland Preservation.
(28) Travel and Tourism.
(29) Battle of Kings Mountain.
(30) NC Civil War.
(31) North Carolina Zoological Society.
(32) United States Service Academy.
(33) Carolina Raptor Center.
(34) Carolinas Credit Union Foundation.
(35) North Carolina State Flag.
(36) NC Mining.
(37) Coastal Land Trust.
(38) ARTS NC.
(39) Choose Life.
(40) North Carolina Green Industry Council.
(41) NC Horse Council.
(42) Core Sound Waterfowl Museum and Heritage Center.
(43) Mountains-to-Sea Trail, Inc."
SECTION 1.10.(b) G.S. 20-79.7(a) reads as rewritten:
"§ 20-79.7. Fees for special registration plates and distribution of the fees.
(a) Fees. - Upon request, the Division shall provide and issue free of charge a single Legion of Valor, 100% Disabled Veteran, and Ex-Prisoner of War registration plate to a recipient of a Legion of Valor award, a 100% disabled veteran, and an ex-prisoner of war each year. The preceding special registration plates are subject to the regular motor vehicle registration fees in G.S. 20-88, if the registered weight of the vehicle is greater than 6,000 pounds. All other special registration plates are subject to the regular motor vehicle registration fee in G.S. 20-87 or G.S. 20-88 plus an additional fee in the following amount:
Special Plate Additional Fee Amount
American Red Cross $30.00
Animal Lovers $30.00
Arthritis Foundation $30.00
ARTS NC $30.00
Back Country Horsemen of NC $30.00
Boy Scouts of America $30.00
Brenner Children's Hospital $30.00
Carolina Raptor Center $30.00
Carolinas Credit Union Foundation $30.00
Carolinas Golf Association $30.00
Coastal Conservation Association $30.00
Coastal Land Trust $30.00
Crystal Coast $30.00
Daniel Stowe Botanical Garden $30.00
El Pueblo $30.00
Farmland Preservation $30.00
First in Forestry $30.00
Girl Scouts $30.00
Greensboro Symphony Guild $30.00
Historical Attraction $30.00
Home Care and Hospice $30.00
Home of American Golf $30.00
HOMES4NC $30.00
Hospice Care $30.00
In God We Trust $30.00
Maggie Valley Trout Festival $30.00
Morgan Horse Club $30.00
Mountains-to-Sea Trail $30.00
NC Civil War $30.00
NC Coastal Federation $30.00
NC Veterinary Medical Association $30.00
National Kidney Foundation $30.00
North Carolina 4-H Development Fund $30.00
North Carolina Emergency Management Association $30.00
North Carolina Green Industry Council $30.00
North Carolina Libraries $30.00
Outer Banks Preservation Association $30.00
Pamlico-Tar River Foundation $30.00
P.E.O. Sisterhood $30.00
Personalized $30.00
Retired Legislator $30.00
Ronald McDonald House $30.00
Share the Road $30.00
S.T.A.R. $30.00
State Attraction $30.00
Stock Car Racing Theme $30.00
Support NC Education $30.00
Support Our Troops $30.00
Sustainable Fisheries $30.00
Toastmasters Club $30.00
Topsail Island Shoreline Protection $30.00
Travel and Tourism $30.00
AIDS Awareness $25.00
Buffalo Soldiers $25.00
Choose Life $25.00
Collegiate Insignia $25.00
First in Turf $25.00
Goodness Grows $25.00
High School Insignia $25.00
Kids First $25.00
National Multiple Sclerosis Society $25.00
National Wild Turkey Federation $25.00
NC Agribusiness $25.00
NC Children's Promise $25.00
Nurses $25.00
Olympic Games $25.00
Rocky Mountain Elk Foundation $25.00
Special Olympics $25.00
Support Soccer $25.00
Surveyor Plate $25.00
The V Foundation for Cancer Research Division $25.00
University Health Systems of Eastern Carolina $25.00
Alpha Phi Alpha Fraternity $20.00
ALS Association, Jim "Catfish" Hunter Chapter $20.00
ARC of North Carolina $20.00
Audubon North Carolina $20.00
Autism Society of North Carolina $20.00
Battle of Kings Mountain $20.00
Be Active NC $20.00
Brain Injury Awareness $20.00
Breast Cancer Earlier Detection $20.00
Buddy Pelletier Surfing Foundation $20.00
Concerned Bikers Association/ABATE of North Carolina $20.00
Daughters of the American Revolution $20.00
Donate Life $20.00
Ducks Unlimited $20.00
Greyhound Friends of North Carolina $20.00
Guilford Battleground Company $20.00
Harley Owners' Group $20.00
Jaycees $20.00
Juvenile Diabetes Research Foundation $20.00
Kappa Alpha Order $20.00
Litter Prevention $20.00
March of Dimes $20.00
Morgan Horse Club
$20.00
Native American $20.00
NC Fisheries Association $20.00
NC Horse Council $20.00
NC Mining $20.00
NC Tennis Foundation $20.00
NC Trout Unlimited $20.00
NC Victim Assistance $20.00
NC Wildlife Federation $20.00
NC Wildlife Habitat Foundation $20.00
NC Youth Soccer Association $20.00
North Carolina Master Gardener $20.00
Omega Psi Phi Fraternity $20.00
Phi Beta Sigma Fraternity $20.00
Piedmont Airlines $20.00
Prince Hall Mason $20.00
Save the Sea Turtles $20.00
Scenic Rivers $20.00
School Technology $20.00
SCUBA $20.00
Soil and Water Conservation $20.00
Special Forces Association $20.00
Support Public Schools $20.00
Sustainable Fisheries
$20.00
US Equine Rescue League $20.00
USO of NC $20.00
Wildlife Resources $20.00
Zeta Phi Beta Sorority $20.00
Carolina Regional Volleyball Association $15.00
Carolina's Aviation Museum $15.00
Leukemia & Lymphoma Society $15.00
Lung Cancer Research $15.00
NC Beekeepers $15.00
Shag Dancing $15.00
Active Member of the National Guard None
100% Disabled Veteran None
Ex-Prisoner of War None
Gold Star Lapel Button None
Legion of Valor None
Purple Heart Recipient None
All Other Special Plates $10.00."
part ii. clarifying and administrative changes
SECTION 2.1. G.S. 105-113.38 reads as rewritten:
"§
105-113.38. Bond.Bond or irrevocable letter of credit.
The Secretary may require a wholesale dealer or a retail dealer to furnish a bond in an amount that adequately protects the State from loss if the dealer fails to pay taxes due under this Part. A bond shall be conditioned on compliance with this Part, shall be payable to the State, and shall be in the form required by the Secretary. The Secretary shall proportion a bond amount to the anticipated tax liability of the wholesale dealer or retail dealer. The Secretary shall periodically review the sufficiency of bonds required of dealers, and shall increase the amount of a required bond when the amount of the bond furnished no longer covers the anticipated tax liability of the wholesale dealer or retail dealer. The Secretary shall decrease the amount of a required bond when the Secretary determines that a smaller bond amount will adequately protect the State from loss. For purposes of this section, a bond may also include an irrevocable letter of credit."
SECTION 2.2.(a) G.S. 105-113.107(1a) reads as rewritten:
"(1a) At the rate of three
dollars and fifty cents ($3.50) for each gram, or fraction thereof, of
marijuana, other than separated stems and stalks taxed under subdivision (1) of
this section.section, or synthetic cannabinoids."
SECTION 2.2.(b) This section becomes effective June 1, 2011.
SECTION 2.3. G.S. 105-120.2(c) reads as rewritten:
"(c) For purposes of
this section, a "holding company" is a corporation that receives 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 or voting capital interests."
SECTION 2.4. G.S. 105-164.3 reads as rewritten:
"§ 105-164.3. Definitions.
The following definitions apply in this Article:
…
(25a) Over-the-counter drug. - A drug that
can be dispensed under federal law without a prescription and is required by 21
C.F.R. § 201.66 to have a label containing a "Drug Facts" panel and
or a statement of its active ingredients.
…
(36) Sale or selling. - The
transfer for consideration of title title, license to use or consume,
or possession of tangible personal property or digital property or the
performance for consideration of a service. The transfer or performance may be
conditional or in any manner or by any means. The term includes the following:
a. Fabrication of tangible personal property for consumers by persons engaged in business who furnish either directly or indirectly the materials used in the fabrication work.
b. Furnishing or preparing tangible personal property consumed on the premises of the person furnishing or preparing the property or consumed at the place at which the property is furnished or prepared.
c. A transaction in which the possession of the property is transferred but the seller retains title or security for the payment of the consideration.
d. A lease or rental.
e. Transfer of a digital code.
…
(45a) Streamlined Agreement. - The
Streamlined Sales and Use Tax Agreement as amended as of May 12, 2009.December
19, 2011.
…."
SECTION 2.5. G.S. 105-164.4B(a) reads as rewritten:
"(a) General
Principles. - The following principles apply in determining where to source the
sale of a product. These principles apply regardless of the nature of the product.product,
except as otherwise noted in this section:
(1) Over-the-counter. - When a purchaser receives a product at a business location of the seller, the sale is sourced to that business location.
(2) Delivery to specified address. - When a purchaser or purchaser's donee receives a product at a location specified by the purchaser and the location is not a business location of the seller, the sale is sourced to the location where the purchaser or the purchaser's donee receives the product.
(3) Delivery
address unknown. - When a seller of a product does not know the address where a
product is received, the sale is sourced to the first address or location
listed in this subdivision that is known to the seller:
a. The
business or home address of the purchaser.
b. The
billing address of the purchaser or, if the product is prepaid wireless calling
service, the location associated with the mobile telephone number.
c. The
address from which tangible personal property was shipped or from which a
service was provided.
(4) When subdivisions (1) and (2) of this subsection do not apply, the sale is sourced to the location indicated by an address for the purchaser that is available from the business records of the seller that are maintained in the ordinary course of the seller's business when use of this address does not constitute bad faith.
(5) When subdivisions (1), (2), and (4) of this subsection do not apply, the sale is sourced to the location indicated by an address for the purchaser obtained during the consummation of the sale, including the address of a purchaser's payment instrument, if no other address is available, when use of this address does not constitute bad faith.
(6) When subdivisions (1), (2), (4), and (5) of this subsection do not apply, including the circumstance in which the seller is without sufficient information to apply the rules, the location will be determined based on the following:
a. Address from which tangible personal property was shipped,
b. Address from which the digital good or the computer software delivered electronically was first available for transmission by the seller, or
c. Address from which the service was provided."
SECTION 2.6. G.S. 105-164.7 reads as rewritten:
"§ 105-164.7. Retailer to collect sales tax from purchaser as trustee for State.
The sales tax imposed by this Article is intended to be passed on to the purchaser of a taxable item and borne by the purchaser instead of by the retailer. A retailer must collect the tax due on an item when the item is sold at retail. The tax is a debt from the purchaser to the retailer until paid and is recoverable at law by the retailer in the same manner as other debts. A retailer is considered to act as a trustee on behalf of the State when it collects tax from the purchaser of a taxable item. The tax must be stated and charged separately on the invoices or other documents of the retailer given to the purchaser, except for vending machine sales. Where the sales price of a product includes the tax, a retailer must clearly display a statement indicating such."
SECTION 2.7.(a) Part 2 of Article 5 of Chapter 105 of the General Statutes is amended by adding the following new section:
"§ 105-164.12C. Items given away by merchants.
If a retailer engaged in the business of selling prepared food and drink for immediate or on-premises consumption also gives prepared food or drink to its patrons or employees free of charge, for the purpose of this Article, the property given away is considered sold along with the property sold. If a retailer gives an item of inventory to a customer free of charge on the condition that the customer purchase similar or related property, the item given away is considered sold along with the item sold. In all other cases, property given away or used by any retailer or wholesale merchant is not considered sold, whether or not the retailer or wholesale merchant recovers its cost of the property from sales of other property."
SECTION 2.7.(b) This section becomes effective August 7, 2009.
SECTION 2.8. G.S. 105-164.14(a) reads as rewritten:
"(a) Interstate Carriers. - An interstate carrier is allowed a refund, in accordance with this section, of part of the sales and use taxes paid by it on the purchase in this State of railway cars and locomotives, and fuel, lubricants, repair parts, and accessories for a motor vehicle, railroad car, locomotive, or airplane the carrier operates. An "interstate carrier" is a person who is engaged in transporting persons or property in interstate commerce for compensation. The Secretary shall prescribe the periods of time, whether monthly, quarterly, semiannually, or otherwise, with respect to which refunds may be claimed, and shall prescribe the time within which, following these periods, an application for refund may be made.
An applicant for refund shall furnish the following information and any proof of the information required by the Secretary:
(1) A list identifying the railway cars, locomotives, fuel, lubricants, repair parts, and accessories purchased by the applicant inside or outside this State during the refund period.
(2) The purchase price of the items listed in subdivision (1) of this subsection.
(3) The sales and use taxes paid in this State on the listed items.
(4) The number of miles the applicant's motor vehicles, railroad cars, locomotives, and airplanes were operated both inside and outside this State during the refund period. Airplane miles are not in this State if the airplane does not depart or land in this State.
(5) Any other information required by the Secretary.
For each applicant, the Secretary shall compute the amount to
be refunded as follows. First, the Secretary shall determine the ratio of mileage
ratio. The numerator of the mileage ratio is the number of miles the
applicant operated its motor vehicles, railroad cars, locomotives, and
airplanes in this State during the refund period to period. The
denominator of the mileage ratio is the number of miles it operated them
all motor vehicles, railroad cars, locomotives, and airplanes that the
applicant owns, both inside and outside this State during the refund
period. Second, the Secretary shall determine the applicant's proportional
liability for the refund period by multiplying this mileage ratio by the
purchase price of the items identified in subdivision (1) of this subsection and
then multiplying the resulting product by the tax rate that would have applied
to the items if they had all been purchased in this State. Third, the Secretary
shall refund to each applicant the excess of the amount of sales and use taxes
the applicant paid in this State during the refund period on these items over
the applicant's proportional liability for the refund period."
SECTION 2.9. G.S. 105-164.27A reads as rewritten:
"§ 105-164.27A. Direct pay permit.
(a) General. - A general direct pay permit authorizes its holder to purchase any tangible personal property, digital property, or service without paying tax to the seller and authorizes the seller to not collect any tax on a sale to the permit holder. A person who purchases an item under a direct pay permit issued under this subsection is liable for use tax due on the purchase. The tax is payable when the property is placed in use or the service is received. A direct pay permit issued under this subsection does not apply to taxes imposed under G.S. 105-164.4 on electricity.
A person who purchases an item for use in this State whose tax status cannot be determined at the time of the purchase because of one of the reasons listed below may apply to the Secretary for a general direct pay permit:
(1) The place of business where the item will be used is not known at the time of the purchase and a different tax consequence applies depending on where the item is used.
(2) The manner in which the item will be used is not known at the time of the purchase and one or more of the potential uses is taxable but others are not taxable.
...
(b) Telecommunications Service. - A direct pay permit for telecommunications service authorizes its holder to purchase telecommunications service and ancillary service without paying tax to the seller and authorizes the seller to not collect any tax on a sale to the permit holder. A person who purchases these services under a direct pay permit must file a return and pay the tax due monthly or quarterly to the Secretary. A direct pay permit issued under this subsection does not apply to any tax other than the tax on telecommunications service and ancillary service.
A call center that purchases telecommunications service that originates outside this State and terminates in this State may apply to the Secretary for a direct pay permit for telecommunications service and ancillary service. A call center is a business that is primarily engaged in providing support services to customers by telephone to support products or services of the business. A business is primarily engaged in providing support services by telephone if at least sixty percent (60%) of its calls are incoming.
…."
SECTION 2.10. G.S. 105-187.43(b) reads a rewritten:
"(b) Prepayment. - A taxpayer
who is consistently liable for at least ten twenty thousand
dollars ($10,000)($20,000) of tax a month must make a monthly
prepayment of the next month's tax liability. This requirement applies when the
taxpayer meets the threshold and the Secretary notifies the taxpayer to make
prepayments. A prepayment is due on the date a monthly payment is due. The
prepayment must equal at least sixty five percent (65%) of any of the
following:
(1) The amount of tax due for the current month.
(2) The amount of tax due for the same month in the preceding year.
(3) The average monthly amount of tax due in the preceding calendar year."
SECTION 2.11. G.S. 143-59.1(a) reads as rewritten:
"(a) Ineligible Vendors. - The Secretary of Administration and other entities to which this Article applies shall not contract for goods or services with either of the following:
(1) A vendor if the
vendor or an affiliate of the vendor meets one or more of the conditions of
G.S. 105-164.8(b) but refuses to collect the use tax levied under Article
5 of Chapter 105 of the General Statutes on its sales delivered to North
Carolina. The Upon request, the Secretary of Revenue shall
provide the Secretary of Administration periodically with a list of vendors
to which or another entity to which this Article applies verification
whether this section applies.applies to a specific entity.
(2) A vendor if the vendor or an affiliate of the vendor incorporates or reincorporates in a tax haven country after December 31, 2001, but the United States is the principal market for the public trading of the stock of the corporation incorporated in the tax haven country."
SECTION 2.12. G.S. 105-241(b)(2a) reads as rewritten:
"(2a) Motor fuel taxes. - A
taxpayer that is required to file files an electronic return
under Subchapter V of this Chapter or Article 3 of Chapter 119 of the General
Statutes must pay the tax by electronic funds transfer."
SECTION 2.13. Effective when it becomes law, but expiring at the same time as Section 1 of S.L. 2011-296 expires (currently July 1, 2013), G.S. 161-10(a), as rewritten by S.L. 2011-296, reads as rewritten:
"§ 161-10. Uniform fees of registers of deeds.
(a) Except as otherwise provided in this Article, all fees collected under this section shall be deposited into the county general fund. While performing the duties of the office, the register of deeds shall collect the following fees which shall be uniform throughout the State:
(1) Instruments in General. - For registering or filing any instrument for which no other provision is made by this section, the fee shall be twenty-six dollars ($26.00) for the first 15 pages plus four dollars ($4.00) for each additional page or fraction thereof.
When a subsequent instrument, as
defined in G.S. 161-14.1(a)(3), is presented for registration with
reference to more than one original instrument for which recording data are
required to be indexed pursuant to G.S. 161-14.1(b), the fee shall be an
additional twenty-five dollars ($25.00) for each additional reference. For
any instrument that assigns more than one security instrument as defined in
G.S. 45-36.4(18) by reference to previously recorded instrument recording
data that are required to be indexed pursuant to G.S. 161-14.1(b), the fee
shall be an additional ten dollars ($10.00) for each additional reference.
When a document is presented for registration that consists of multiple instruments, the fee shall be an additional ten dollars ($10.00) for each additional instrument. A document consists of multiple instruments when it contains two or more instruments with different legal consequences or intent, each of which is separately executed and acknowledged and could be recorded alone.
…."
SECTION 2.14.(a) G.S. 45-102(6) reads as rewritten:
"(6) The address, telephone
number, and other contact information for the consumer complaint section State
Home Foreclosure Prevention Project of the Housing Finance Agency.
Office of Commissioner of Banks, or, alternatively, if the loan is serviced by
a credit union, the address, telephone number, and other contact information
for the consumer complaint section of the Credit Union Division."
SECTION 2.14.(b) G.S. 45-103(a) reads as rewritten:
"(a) Within three
business days of mailing the notice required by G.S. 45-102, the mortgage
servicer shall file certain information with the Administrative Office of the
Courts. The filing shall be in an electronic format, as designated by the
Administrative Office of the Courts, and shall contain the name and address of
the borrower, the due date of the last scheduled payment made by the borrower,
and the date the notice was mailed to the borrower. The Administrative Office
of the Courts shall establish an internal database to track information
required by this section. The Commissioner of Banks Housing Finance
Agency shall design and develop the State Home Foreclosure Prevention
Project database, in consultation with the Administrative Office of the
Courts. Only the Administrative Office of the Courts, the Office of
Commissioner of Banks, the Housing Finance Agency, and the clerk of court
as provided by G.S. 45-107 shall have access to the database."
SECTION 2.14.(c) G.S. 45-104 reads as rewritten:
"§ 45-104. State Home Foreclosure Prevention Project and Fund.
(a) The
Commissioner of Banks is authorized to establish the State Home Foreclosure
Prevention Project. The purpose of the State Home Foreclosure Prevention
Project is to seek solutions to avoid foreclosures for home loans. In
developing the Project, the Commissioner The Project may include
input from HUD-approved housing counselors, community organizations, the Credit
Union Division and other State agencies, mortgage lenders, mortgage servicers,
and other partners. The Housing Finance Agency shall administer the Project.
(b) There is
established a State Home Foreclosure Prevention Trust Fund to be managed and
maintained by the Housing Finance Agency. The funds shall be held separate from
any other funds received by either the Office of the Commissioner of Banks
or the Housing Finance Agency in trust for the operation of the State Home
Foreclosure Prevention Project.
(c) Upon the filing
of the information required under G.S. 45-103, the mortgage servicer shall
pay a fee of seventy-five dollars ($75.00) to the State Home Foreclosure
Prevention Trust Fund. The fee shall not be charged more than once for a home
loan covered by this act. The Office of the Commissioner of Banks Housing
Finance Agency shall collect the fee. Upon receipt of the fee the Housing
Finance AgencyCommissioner shall deposit the funds into a
separate account. The funds shall be transferred no less than monthly into
the State Home Foreclosure Prevention Trust Fund. The Housing Finance Agency
shall manage the State Home Foreclosure Prevention Trust Fund.
(d) The Housing Finance Agency shall use funds from the State Home Foreclosure Prevention Trust Fund to compensate performance-based service contracts or other contracts and grants necessary to implement the purposes of this act in the following manner:
(1) An amount, not
to exceed the greater of two million two hundred thousand dollars ($2,200,000)
or thirty percent (30%) of the funds per year, to cover the administrative
costs of the operation of the program by the Office of the Commissioner of
Banks and the Housing Finance Agency, including managing on behalf of the
Administrative Office of the Courts the database identified in
G.S. 45-103, expenses associated with informing homeowners of State
resources available for foreclosure prevention, expenses associated with
connecting homeowners to available resources, and assistance to homeowners and
counselors in communicating with mortgage servicers.
(2) An amount, not to exceed the greater of three million four hundred thousand dollars ($3,400,000) or forty percent (40%) per year, to make grants to or reimburse nonprofit housing counseling agencies for providing foreclosure prevention counseling services to homeowners involved in the State Home Foreclosure Prevention Project.
(3) An amount, not to exceed thirty percent (30%) of the total funds collected per year, to make grants to or reimburse nonprofit legal service providers for services rendered on behalf of homeowners in danger of defaulting on a home loan to avoid foreclosure, limited to legal representation such as negotiation of loan modifications or other loan work-out solutions, defending homeowners in foreclosure or representing homeowners in bankruptcy proceedings, and research and counsel to homeowners regarding the status of their home loans.
(4) Any funds remaining in the State Home Foreclosure Prevention Trust Fund as of June 30, 2011, and any funds remaining in the State Home Foreclosure Prevention Trust Fund upon the expiration of each subsequent fiscal year shall be directed to the North Carolina Housing Trust Fund.
(e) The Housing Finance Agency shall have the discretion to enter into an agreement to administer funds under subdivisions (2) and (3) of subsection (d) of this section in a manner that complements or supplements other State and federal programs directed to prevent foreclosures for homeowners participating in the State Home Foreclosure Prevention Project."
SECTION 2.14.(d) G.S. 45-105 reads as rewritten:
"§ 45-105. Extension of foreclosure process.
The Commissioner of Banks upon referral from the Housing
Finance Agency shall review information provided in the database created by
G.S. 45-103 to determine which home loans are appropriate for efforts to
avoid foreclosure. If the Commissioner Housing Finance Agency reasonably
believes, based on a full review of the loan information, the mortgage
servicer's loss mitigation efforts, the borrower's capacity and interest in
staying in the home, and other appropriate factors, that further efforts by the
State Home Foreclosure Prevention Project offer a reasonable prospect to avoid
foreclosure on primary residences, the Commissioner Executive
Director of the Housing Finance Agency shall have the authority to extend
one time under this Article the allowable filing date for any foreclosure
proceeding on a primary residence by up to 30 days beyond the earliest filing
date established by the pre-foreclosure notice. If the Commissioner Executive
Director of the Housing Finance Agency makes the determination that a loan
is subject to this section, the Commissioner Housing Finance Agency shall
notify the borrower, mortgage servicer, and the Administrative Office of the
Courts. If the mortgage servicer is a state or federally chartered credit
union, the Commissioner shall also notify the Administrator of the Credit Union
Division of the determination."
SECTION 2.14.(e) G.S. 45-106 reads as rewritten:
"§ 45-106. Use and privacy of records.
The data provided to the Administrative Office of the Courts
pursuant to G.S. 45-103 shall be exclusively for the use and purposes of
the State Home Foreclosure Prevention Project developed by the Commissioner of
Banks and administered by the Housing Finance Agency in accordance with
G.S. 45-104. The information provided to the database is not a public
record, except that a mortgage lender and a mortgage servicer shall have access
to the information submitted only with regard to its own loans. Any notice
provided by the Commissioner to the Administrator of the Credit Union Division
under G.S. 45-105 is not a public record. Provision of information to
the Administrative Office of the Courts for use by the State Home Foreclosure
Prevention Project shall not be considered a violation of G.S. 53B-8. A
mortgage servicer shall be held harmless for any alleged breach of privacy
rights of the borrower with respect to the information the mortgage servicer
provides in accordance with this Article."
SECTION 2.14.(f) Section 5 of S.L. 2008-226 reads as rewritten:
"SECTION 5. The Office of the
Commissioner of Banks Housing Finance Agency shall report to the
General Assembly describing the operation of the program established by this
act not later than May 1 of each year until the funds are completely disbursed
from the reserve. State Home Foreclosure Prevention Trust Fund.
Information in the report shall be presented in aggregate form and may
include the number of clients helped, the effectiveness of the funds in
preventing home foreclosure, recommendations for further efforts needed to
reduce foreclosures, and provide any other aggregated information the Commissioner
Housing Finance Agency determines is pertinent or that the General
Assembly requests."
SECTION 2.14.(g) Section 6 of S.L. 2008-226, as amended by Section 9 of S.L. 2010-168, reads as rewritten:
"SECTION 6. Section 4 of this act becomes
effective July 1, 2008. Sections 1, 2, 3, and 5 become effective November 1, 2008,
and expire May 31, 2013. 2008. The remainder of this act is
effective when it becomes law."
SECTION 2.14.(h) This section becomes effective December 1, 2012. The North Carolina Housing Finance Agency shall assume the responsibilities designated in this section for operation of the State Home Foreclosure Prevention Project no later than December 31, 2012.
part iii. motor vehicle/property tax changes
SECTION 3.1. G.S. 105-321(f) reads as rewritten:
"(f) Minimal Taxes.
- Notwithstanding the provisions of G.S. 105-380, the governing body of a
taxing unit that collects its own taxes may, by resolution, direct its assessor
and tax collector not to collect minimal taxes charged on the tax records and
receipts. Minimal taxes are the combined taxes and fees of the taxing unit and
any other units for which it collects taxes, due on a tax receipt prepared
pursuant to G.S. 105-320 or on a tax notice prepared pursuant to
G.S. 105-330.5, in a total original principal amount that does not
exceed an amount, up to five dollars ($5.00), set by the governing body. The
amount set by the governing body should be the estimated cost to the taxing
unit of billing the taxpayer for the amounts due on a tax receipt or tax
notice. Upon adoption of a resolution pursuant to this subsection, the tax
collector shall not bill the taxpayer for, or otherwise collect, minimal taxes
but shall keep a record of all minimal taxes by receipt number and amount and
shall make a report of the amount of these taxes to the governing body at the
time of the settlement. These minimal taxes shall not be a lien on the
taxpayer's real property and shall not be collectible under Article 26 of this
Subchapter. A resolution adopted pursuant to this subsection must be adopted on
or before June 15 preceding the first taxable year to which it applies and
remains in effect until amended or repealed by resolution of the taxing unit. A
resolution adopted pursuant to this subsection shall not apply to taxes on
registered motor vehicles."
SECTION 3.2. G.S. 105-330.2 reads as rewritten:
"§ 105-330.2. (Effective July 1, 2013 - See Editor's note) Appraisal, ownership, and situs.
…
(b1) Valuation Appeal. -
The owner of a classified motor vehicle may appeal the appraised value or
taxability of the vehicle by filing a request for appeal with the assessor
within 30 days of the date taxes are due on the vehicle under
G.S. 105-330.4. An owner who appeals the appraised value or taxability of
a classified motor vehicle must pay the tax on the vehicle when due, subject to
a full or partial refund if the appeal is decided in the owner's favor.
The combined tax and registration notice or tax receipt for a
classified motor vehicle must explain the right to appeal the appraised value and
taxability of the vehicle. A lessee of a vehicle that is required by the
terms of the lease to pay the tax on the vehicle is considered the owner of the
vehicle for purposes of filing an appeal under this subsection. Appeals
filed under this subsection shall proceed in the manner provided by
G.S. 105-312(d).
(b2) Exemption or Exclusion Appeal. - The owner of a classified motor vehicle may appeal the vehicle's eligibility for an exemption or exclusion by filing a request for appeal with the assessor within 30 days of the assessor's initial decision on the exemption or exclusion application filed by the owner pursuant to G.S. 105-330.3(b). Appeals filed under this subsection shall proceed in the manner provided by G.S. 105-312(d).
…."
SECTION 3.3. G.S. 105-330.3 reads as rewritten:
"§ 105-330.3. (Effective July 1, 2013 - See Editor's note) Listing requirements for classified motor vehicles; application for exempt status.
…
(a1) Unregistered Vehicles. -
The owner of an unregistered classified motor vehicle must list the vehicle for
taxes by filing an abstract with the assessor of the county in which the
vehicle is located on or before January 31 following the date the owner
acquired the unregistered vehicle or, in the case of a registration that is not
renewed, January 31 following the date the registration expires, and on or
before January 31 of each succeeding year that the vehicle is unregistered. If
a classified motor vehicle required to be listed pursuant to this
subsection is registered during the calendar before the end of the
fiscal year in for which it was listed, the vehicle is
taxed for the fiscal year that opens in the calendar year of listing as an
unregistered vehicle. required to be listed, the following applies:
(1) The vehicle is taxed as a registered vehicle, and the tax assessed pursuant to this subsection for the fiscal year in which the vehicle was required to be listed shall be released and/or refunded.
(2) For any months for which the vehicle was not taxed between the date the registration expires and the start of the current registered vehicle tax year, the vehicle is taxed as an unregistered vehicle as follows:
a. The value of the motor vehicle is determined as of January 1 of the year in which the registration of the motor vehicle expires.
b. In computing the taxes, the assessor must use the tax rates and any additional motor vehicle taxes of the various taxing units in effect on the date the taxes are computed.
c. The tax on the motor vehicle is the product of a fraction and the number of months for which the vehicle was not taxed between the date the registration expires and the start of the current registered vehicle tax year. The numerator of the fraction is the product of the appraised value of the motor vehicle and the tax rate of the various taxing units. The denominator of the fraction is 12.
d. Interest accrues on unpaid taxes for these unregistered classified motor vehicles at the rate of five percent (5%) for the remainder of the month following the month the taxes are due. Interest accrues at the rate of three-fourths percent (3/4%) for each following month until the taxes are paid, unless the notice is prepared after the date the taxes are due. In that circumstance, the interest accrues beginning the second month following the date of the notice until the taxes are paid.
e. For any months between the date the registration expires and the start of the current registered vehicle tax year that the vehicle is taxed as an unregistered vehicle pursuant to G.S. 105-312, the vehicle is not taxed as provided in this subsection.
(3) A vehicle
required to be listed pursuant to this subsection that is not listed by January
31 and is not registered before the end of the fiscal year for which it was
required to be listed is subject to discovery pursuant to G.S. 105-312.G.S. 105
312, unless the vehicle has been taxed as a registered vehicle for the current
year.
(b) Exemption or
Exclusion. - The owner of a classified motor vehicle who claims an exemption or
exclusion from tax under this Subchapter has the burden of establishing that
the vehicle is entitled to the exemption or exclusion. The owner may establish
prima facie entitlement to exemption or exclusion of the classified motor vehicle
by filing an application for exempt status with the assessor. assessor
within 30 days of the date taxes on the vehicle are due. When an approved
application is on file, the assessor must omit from the tax records the
classified motor vehicles described in the application. An application is not
required for vehicles qualifying for the exemptions or exclusions listed in
G.S. 105 282.1(a)(1). The remaining provisions of G.S. 105 282.1 do
not apply to classified motor vehicles.
…."
SECTION 3.4. G.S. 105-330.4 reads as rewritten:
"§ 105-330.4. (Effective July 1, 2013 - See Editor's note) Due date, interest, and enforcement remedies.
…
(c) Remedies. - The
enforcement remedies in this Subchapter apply to unpaid taxes on an
unregistered classified motor vehicle. The enforcement remedies in this
Subchapter do not apply to unpaid taxes on a registered classified motor vehicle.vehicle
for which the tax year begins on or after August 1, 2013.
(d) Tax payments
submitted by mail are deemed to be received as of the date shown on the
postmark affixed by the United States Postal Service. If no date is shown on
the postmark or if the postmark is not affixed by the United States Postal
Service, the tax payment is deemed to be received when the payment is received in
the office of the tax collector. by the collecting authority. In any
dispute arising under this subsection, the burden of proof is on the taxpayer
to show that the payment was timely made."
SECTION 3.5. G.S. 105-330.5(e) is repealed.
SECTION 3.6. Effective July 1, 2011, Section 13 of S.L. 2005-294, as amended by Section 31.5 of S.L. 2006-259, Section 22(b) of S.L. 2007-527, and Section 65 of S.L. 2008-134, reads as rewritten:
"SECTION 13. Sections 4 and 8 of this act
become effective January 1, 2006. Sections 1, 2, 3, 5, 6, 7, 10 and 11 of this
act become effective July 1, 2011,2013, or when the Division of
Motor Vehicles of the Department of Transportation and the Department of
Revenue certify that the integrated computer system for registration renewal
and property tax collection for motor vehicles is in operation, whichever
occurs first. Sections 12 and 13 of this act are effective when they become
law. Nothing in this act shall require the General Assembly to appropriate
funds to implement it for the biennium ending June 30, 2007."
part iv. effective date
SECTION 4.1. Except as otherwise provided, this act is effective when it becomes law.