Source: https://www.ncleg.gov/EnactedLegislation/SessionLaws/HTML/2019-2020/SL2019-6.html
Timestamp: 2019-08-17 12:47:03
Document Index: 259255946

Matched Legal Cases: ['§ 105', '§ 105', '§ 105', '§ 105', '§ 105', '§ 105', '§ 105', '§ 2011', '§ 1786']

SL 2019-6 (SB 56)
SESSION LAW 2019-6
AN ACT To make technical changes to the revenue laws.
SECTION 1.1. G.S. 105‑228.90(b)(1b) reads as rewritten:
"(1b) Code. – The Internal Revenue Code as enacted as of February 9, 2018, January 1, 2019, including any provisions enacted as of that date that become effective either before or after that date."
SECTION 2.1. G.S. 105‑130.5(a) reads as rewritten:
(26) The amount of gain that would be included for federal income tax purposes without regard to section 1400Z‑2(b) 1400Z‑2(a) of the Code. The adjustment made in this subsection does not result in a difference in basis of the affected assets for State and federal income tax purposes. The purpose of this subdivision is to decouple from the deferral of gains reinvested into an Opportunity Fund available under federal law.
SECTION 2.2. G.S. 105‑130.5(b) reads as rewritten:
(30) The amount of gain included in the taxpayer's federal taxable income under section 1400Z‑2(a) of the Code to the extent the same income was included in the taxpayer's federal taxable State net income in a prior taxable year under subdivision (a)(26) of this section. The purpose of this subdivision is to prevent double taxation of income the taxpayer was previously required to include in the calculation of State net income.
SECTION 3.1. Section 38.1(j) of S.L. 2018‑5 reads as rewritten:
"SECTION 38.1.(j) Subsections (e), (f), and (h) of this section are effective for taxable years beginning on or after January 1, 2018. G.S. 105‑153.5(a), as amended by subsection (c) of this section, is effective for taxable years beginning on or after January 1, 2018. The remainder of this section is effective when it becomes law."
SECTION 3.2. G.S. 105‑153.5(a1) reads as rewritten:
"(a1) Child Deduction Amount. – A taxpayer who is allowed a federal child tax credit under section 24 of the Code for the taxable year is allowed a deduction under this subsection for each dependent qualifying child for whom the taxpayer is allowed the federal tax credit. The amount of the deduction is equal to the amount listed in the table below based on the taxpayer's adjusted gross income, as calculated under the Code:
SECTION 3.3. G.S. 105‑153.5(c2) reads as rewritten:
(5) The taxpayer must add the amount of gain that would be included for federal income tax purposes without regard to section 1400Z‑2(b) 1400Z‑2(a) of the Code. The adjustment made in this subsection does not result in a difference in basis of the affected assets for State and federal income tax purposes. The purpose of this subdivision is to decouple from the deferral of gains reinvested into an Opportunity Fund available under federal law.
(6) The taxpayer may deduct the amount of gain included in the taxpayer's adjusted gross income under section 1400Z‑2(a) of the Code to the extent the same income was included in the taxpayer's adjusted gross North Carolina taxable income in a prior taxable year under subdivision (5) of this subsection. The purpose of this subdivision is to prevent double taxation of income the taxpayer was previously required to include in the calculation of North Carolina taxable income.
SECTION 4.1. G.S. 105‑113.6 reads as rewritten:
"§ 105‑113.6. Use tax levied.
A tax is levied upon the sale or possession for sale by a person other than a licensed distributor, and upon the use, consumption, and possession for use or consumption of cigarettes within this State at the rate set in G.S. 105‑113.5. This tax does not apply, however, to cigarettes upon which the tax levied in G.S. 105‑113.5 has been paid."
SECTION 4.2. G.S. 105‑113.9 reads as rewritten:
"§ 105‑113.9. Out‑of‑state shipments.
(1) The sale of cigarettes to a nonresident where the cigarettes are delivered by the licensed distributor to the business location of the nonresident purchaser in another state; andstate.
(2) The sale of cigarettes to a nonresident purchaser who has no place of business in North Carolina and who purchases the cigarettes for the purposes of resale not within this State and where the cigarettes are delivered to the purchaser at the business location in North Carolina of the licensed distributor who is also licensed as a distributor under the laws of the state of the nonresident purchaser."
SECTION 4.3. G.S. 105‑113.13 reads as rewritten:
"§ 105‑113.13. Secretary may require a bond or irrevocable letter of credit.
(a) Repealed by Session Laws 2013‑414, s. 22(c), effective September 1, 2013.
SECTION 4.4. The catch line of G.S. 105‑113.77 reads as rewritten:
"§ 105‑113.77. City beer malt beverage and wine retail licenses."
SECTION 4.5. The catch line of G.S. 105‑113.78 reads as rewritten:
"§ 105‑113.78. County beer malt beverage and wine retail licenses."
SECTION 4.6. The catch line of G.S. 105‑113.82 reads as rewritten:
"§ 105‑113.82. Distribution of part of beer malt beverage and wine taxes."
SECTION 4.7. G.S. 105‑113.80 reads as rewritten:
"§ 105‑113.80. Excise taxes on beer, malt beverages, wine, and liquor.
(a) Beer. Malt Beverage. – An excise tax of sixty‑one and seventy‑one hundredths cents (61.71¢) per gallon is levied on the sale of malt beverages.
(b) Wine. – An excise tax of twenty‑six and thirty‑four hundredths cents (26.34¢) per liter is levied on the sale of unfortified wine, and an excise tax of twenty‑nine and thirty‑four hundredths cents (29.34¢) per liter is levied on the sale of fortified wine.
(c) Liquor. – An excise tax of thirty percent (30%) is levied on spirituous liquor and antique spirituous liquor sold in ABC stores and in permitted distilleries. Pursuant to G.S. 18B‑804(b), the price of liquor on which this tax is computed is the distiller's or the spirituous liquor or antique spirituous liquor seller's price plus (i) the State ABC warehouse freight and bailment charges and (ii) a markup for local ABC boards.boards, unless otherwise specified by law."
SECTION 4.8. G.S. 105‑113.83(b) reads as rewritten:
"(b) Beer Malt Beverage and Wine. – The excise taxes on malt beverages and wine levied under G.S. 105‑113.80(a) and (b), respectively, are payable to the Secretary by the resident wholesaler or importer who first handles the beverages in this State. The excise taxes levied under G.S. 105‑113.80(b) on wine shipped directly to consumers in this State pursuant to G.S. 18B‑1001.1 must be paid by the wine shipper permittee. The taxes on malt beverages and wine are payable only once on the same beverages. Unless otherwise provided, the tax is due on or before the 15th day of the month following the month in which the beverage is first sold or otherwise disposed of in this State by the wholesaler, importer, or wine shipper permittee. wholesaler or importer. When excise taxes are paid on wine or malt beverages, the wholesaler or importer must submit to the Secretary verified reports on forms provided by the Secretary detailing sales records for the month for which the taxes are paid. The report must indicate the amount of excise tax due, contain the information required by the Secretary, and indicate separately any transactions to which the excise tax does not apply. A wine shipper permittee shall submit verified reports once a year on forms provided by the Secretary detailing sales records for the year the taxes are paid. The verified report is due on or before the fifteenth day of the first month of the following calendar year."
SECTION 4.9. G.S. 105‑164.13 reads as rewritten:
(11) Any of the following fuel:
a. Motor fuel, as 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 G.S. 105‑449.106(c) 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.
SECTION 4.10. G.S. 105‑259(b) reads as rewritten:
c1. The Alcohol and Tobacco Tax and Trade Bureau of the United States Department of the Treasury.
SECTION 4.11. G.S. 105‑449.76 reads as rewritten:
(a) Reasons. – The Secretary may cancel a license issued under this Article upon the written request of the licensee. licensee and the immediate return of the license to the Secretary. The Secretary may summarily revoke a license issued under this Article when the Secretary finds that the licensee is incurring liability for the tax imposed under this Article after failing to pay a tax when due under this Article. In addition, the Secretary may revoke the license of a licensee that commits one or more of the acts listed in G.S. 105‑449.120 after holding a hearing on whether the license should be revoked.
(c) Release of Bond. – When the Secretary cancels or revokes a license and the licensee has paid all taxes and penalties due under this Article, the Secretary must take one of the following actions concerning a bond or an irrevocable letter of credit filed by the licensee:
(2) Return a bond to the licensee or notify the person liable on the bond and the licensee that the person is released from liability on the bond."
SECTION 4.12. G.S. 105‑449.90(e) reads as rewritten:
"(e) Monthly Filers on 3rd. – An occasional importer must file a monthly return by the third day of each month. An occasional importer is not required to file a return, however, return if all the motor fuel imported by the importer in a reporting period was removed at a terminal located in another state and the supplier of the fuel is an elective supplier or a permissive supplier."
SECTION 5.1. Section 38.5(aa) of S.L. 2018‑5 reads as rewritten:
G.S. 105‑164.13(5e), as enacted by Section 38.8(c) of S.L. 2017‑57 and amended by subsection (j) of this section, is effective July 1, 2018.
SECTION 5.2. G.S. 105‑164.8(b) is amended by adding a new subdivision to read:
"(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:
(9) The retailer, with respect to remote sales into North Carolina for the previous or current calendar year, had one or more of the following:
SECTION 5.3. G.S. 105‑164.13 reads as rewritten:
(38) Food and other items lawfully purchased under the Food Stamp Program, Supplemental Nutrition Assistance Program, 7 U.S.C. § 2011, and supplemental foods lawfully purchased with a food instrument issued under the Special Supplemental Nutrition Program, 42 U.S.C. § 1786, and supplemental foods purchased for direct distribution by the Special Supplemental Nutrition Program.
SECTION 5.4. G.S. 105‑164.13E reads as rewritten:
(a) Exemption. – A qualifying farmer is a person who has an annual income from farming operations for the preceding taxable year of ten thousand dollars ($10,000) or more or who has an average annual income from farming operations for the three preceding taxable years of ten thousand dollars ($10,000) or more. For purposes of this section, the term "income from farming operations" means sales plus any other amounts treated as gross income under the Code from farming operations. A qualifying farmer includes a dairy operator, a poultry farmer, an egg producer, and a livestock farmer, a farmer of crops, a farmer of an aquatic species, as defined in G.S. 106‑758, and a person who boards horses. A qualifying farmer may apply to the Secretary for an exemption certificate number under G.S. 105‑164.28A. The exemption certificate expires when a person fails to meet the income threshold for three consecutive taxable years or ceases to engage in farming operations, whichever comes first.
Except as otherwise provided in this section, the items exempt under this section must be purchased by a qualifying farmer or conditional farmer and used by the qualifying or conditional farmer primarily in farming operations. For purposes of this section, an item is used by a farmer for farming operations if it is used for the planting, cultivating, harvesting, or curing of farm crops or crops, in the production of dairy products, eggs, or animals. animals, or by a person who boards horses. The following tangible personal property and services that may be exempt from sales and use tax under this section are as follows:
(c1) Services for Farmer. – A qualifying item listed in subdivision (6) of subsection (a) of this section purchased to fulfill a service for a person who holds a qualifying farmer exemption certificate or a conditional farmer exemption certificate issued under G.S. 105‑164.28A is exempt from sales and use tax to the same extent as if purchased directly by the person who holds the exemption certificate. A person that purchases one of the items allowed an exemption under this subsection must provide an exemption certificate to the retailer that includes the name of the purchaser qualifying farmer or conditional farmer and an the exemption number issued to the purchaser qualifying farmer or conditional farmer by the Department pursuant to G.S. 105‑164.28A. A person that purchases an item exempt from tax pursuant to this subsection must maintain records to substantiate that an item is used to provide a service for a person who holds a qualifying farmer exemption certificate or a conditional farmer exemption certificate.
SECTION 5.5. G.S. 105‑164.27A(a3) reads as rewritten:
"(a3) Boat and Aircraft. – A direct pay permit issued under this subsection authorizes its holder to purchase tangible personal property, digital property, or repair, maintenance, and installation services for a boat, an aircraft, or a qualified jet engine without paying tax to the seller and authorizes the seller to not collect any tax on the item or services from the permit holder. A person who purchases the property or services under a direct pay permit must file a return and pay the tax due to the Secretary in accordance with G.S. 105‑164.14. G.S. 105‑164.16. A permit holder is allowed a use tax exemption on one or more of the following: (i) the installation charges that are a part of the sales price of tangible personal property or digital property purchased by the permit holder for a boat, an aircraft, or a qualified jet engine, provided the installation charges are separately stated and identified as such on the invoice or other documentation given to the permit holder at the time of the sale and (ii) the sales price of or gross receipts derived from repair, maintenance, and installation services provided for a boat, an aircraft, or a qualified jet engine.
In lieu of purchasing under a direct pay permit pursuant to this subsection, a purchaser may elect to have the seller collect and remit the tax due on behalf of the purchaser. Where the purchaser elects for the seller to collect and remit the tax, an invoice given to the purchaser bearing the proper amount of tax on a retail transaction extinguishes the purchaser's liability for the tax on the transaction. Where a seller cannot or does not separately state installation charges that are a part of the sales price of tangible personal property or digital property for a boat, an aircraft, or a qualified jet engine on the invoice or other documentation given to the purchaser at the time of the sale, tax is due on the total purchase price.
SECTION 5.6. G.S. 105‑164.28A(a) reads as rewritten:
"(a) Authorization. – The Secretary may require a person who purchases an item that is exempt from tax or is subject to a preferential rate of tax depending on the status of the purchaser or the intended use of the item to obtain an exemption certificate from the Department to receive the exemption or preferential rate. exemption. The Department must issue a preferential rate or use‑based exemption number to a person who qualifies for the exemption or preferential rate. exemption. A person who no longer qualifies for a preferential rate or use‑based exemption number must notify the Secretary within 30 days to cancel the number.
An exemption certificate issued by the purchaser authorizes a retailer to sell an item to the holder of the certificate and either collect tax at a preferential rate or not collect tax on the sale, as appropriate. sale. A person who no longer qualifies for an exemption certificate must give notice to each seller that may rely on the exemption certificate on or before the next purchase. A person who purchases an item under an exemption certificate is liable for any tax due on the purchase if the Department determines that the person is not eligible for the exemption certificate or if the person purchased items that do not qualify for an exemption under the exemption certificate. The liability is relieved when the seller obtains the purchaser's name, address, type of business, reason for exemption, and exemption number in lieu of obtaining an exemption certificate."
SECTION 5.7. G.S. 105‑241.14(b) reads as rewritten:
"(b) Assessment. – If a taxpayer files a timely request for a Departmental review of a proposed assessment and the Department and the taxpayer are unable to resolve the taxpayer's objection to the proposed assessment, the Department must send the taxpayer a notice of final determination concerning the proposed assessment. A notice of final determination concerning an the proposed assessment must contain the following information:
(5) An explanation of the collection options available to the Department if the taxpayer does not pay the amount shown due on the notice and any remedies available to the taxpayer concerning these collection options."
SECTION 5.8. G.S. 105‑244.3(a) reads as rewritten:
"(a) Grace Period. – The Department shall take no action to assess any tax due for a filing period beginning on or after March 1, 2016, and ending prior to January 1, 2019, if one or more of the conditions of this subsection apply and the retailer did not receive specific written advice from the Secretary for the transactions at issue for the laws in effect for the applicable periods. Except as otherwise provided, this subsection also applies to use tax liability imposed on a purchaser under G.S. 105‑164.6. The conditions are as follows:
(8) A person failed to collect sales tax on the taxable portion of a mixed service contract that exceeds ten percent (10%) for a transaction on or after January 1, 2017, and prior to January 1, 2019. This subdivision does not prohibit the Secretary from assessing use tax on purchases used to fulfill a mixed service contract.
(8b) A person failed to collect sales tax on the taxable portion of a bundled transaction that included a contract for two or more services, one of which was subject to tax and one of which was not subject to tax, for a transaction on or after March 1, 2016, and prior to January 1, 2017.
SECTION 5.9. G.S. 105‑269.14(b) reads as rewritten:
"(b) Distribution. – The Secretary must distribute a the local portion of the net use tax proceeds collected under this section to counties and cities. in accordance with Subchapter VIII of this Chapter and Chapter 1096 of the 1967 Session Laws.The portion to be distributed to all counties and cities is the total net use tax proceeds collected under this section multiplied by a fraction. The numerator of the fraction is the local use tax proceeds collected under this section. The denominator of the fraction is the total use tax proceeds collected under this section. The Secretary must distribute this portion to the counties and cities in proportion to their total distributions under Articles 39, 40, 42, and 43 of this Chapter and Chapter 1096 of the 1967 Session Laws for the most recent period for which data are available. The provisions of G.S. 105‑472, 105‑486, and 105‑501 do not apply to tax proceeds distributed under this section."
In the General Assembly read three times and ratified this the 18th day of March, 2019.
Approved 8:54 a.m. this 20th day of March, 2019