Bill Text: NC H59 | 2017-2018 | Regular Session | Chaptered
Bill Title: Revenue Laws Technical Changes
Spectrum: Partisan Bill (Republican 6-0)
Status: (Passed) 2017-06-21 - Ch. SL 2017-39 [H59 Detail]
Download: North_Carolina-2017-H59-Chaptered.html
GENERAL ASSEMBLY OF NORTH CAROLINA
SESSION 2017
SESSION LAW 2017-39
HOUSE BILL 59
AN ACT to make technical changes to the revenue laws.
The General Assembly of North Carolina enacts:
PART I. INCOME AND FRANCHISE TAX CHANGES
SECTION 1. G.S. 105‑228.90(b)(1b) reads as rewritten:
"(b) Definitions. – The following definitions apply in this Article:
...
(1b) Code. – The Internal
Revenue Code as enacted as of January 1, 2016, January 1, 2017, including
any provisions enacted as of that date that become effective either before or
after that date."
SECTION 2. G.S. 105‑122 reads as rewritten:
"§ 105‑122. Franchise or privilege tax on domestic and foreign corporations.
(a) Tax Imposed. – An annual
franchise or privilege tax is imposed on a corporation doing business in this
State. The tax is determined on the basis of the books and records of the
corporation as of the close of its income year. A corporation subject to
the tax must file a return under affirmation with the Secretary at the place
and in the manner prescribed by the Secretary. The return must be signed by the
president, vice‑president, treasurer, or chief financial officer of the
corporation. The return is due on or before the fifteenth day of the fourth
month following the end of the corporation's income year.
(b) Determination of Net
Worth. – A corporation taxed under this section shall determine the total
amount of its net worth. worth on the basis of the books and records
of the corporation as of the close of its income year. The net worth of a
corporation is its total assets without regard to the deduction for accumulated
depreciation, depletion, or amortization less its total liabilities, computed
in accordance with generally accepted accounting principles as of the end of
the corporation's taxable year. If the corporation does not maintain its books
and records in accordance with generally accepted accounting principles, then
its net worth is computed in accordance with the accounting method used by the
entity for federal tax purposes so long as the method fairly reflects the
corporation's net worth for purposes of the tax levied by this section. A
corporation's net worth is subject to the following adjustments:
...."
SECTION 3.(a) G.S. 105‑129.96 reads as rewritten:
"§ 105‑129.96. Credit for constructing a railroad intermodal facility.
(a) Credit. – A taxpayer
that constructs or leases an eligible railroad intermodal facility in this
State and places it in service during the taxable year is allowed a tax
credit equal to fifty percent (50%) of all amounts payable by the taxpayer
towards the costs of construction or under the lease.lease if the facility
is placed in service in this State during the taxable year. No credit is
allowed under this section to the extent the cost of the eligible railroad
intermodal facility was provided by public funds.
...
(c) No Double Credit. – A taxpayer may not take the credit allowed in this section for an eligible railroad intermodal facility the taxpayer leases from another unless the taxpayer obtains the lessor's written certification that the lessor will not claim a credit under this Chapter with respect to the facility."
SECTION 3.(b) This section is effective for taxable years beginning on or after January 1, 2017.
SECTION 4.(a) G.S. 105‑130.20 reads as rewritten:
"§ 105‑130.20. Federal corrections.
If a taxpayer's federal taxable income or federal tax credit that affects the amount of State tax payable is corrected or otherwise determined by the federal government, the taxpayer must, within six months after being notified of the correction or final determination by the federal government, file an income tax return with the Secretary reflecting the corrected or determined taxable income. The Secretary must propose an assessment for any additional tax due from the taxpayer as provided in Article 9 of this Chapter. The Secretary must refund any overpayment of tax as provided in Article 9 of this Chapter. A taxpayer that fails to comply with this section is subject to the penalties in G.S. 105‑236 and forfeits its rights to any refund due by reason of the determination."
SECTION 4.(b) G.S. 105‑159 reads as rewritten:
"§ 105‑159. Federal corrections.
If a taxpayer's adjusted gross income
income, filing status, personal exemptions, standard deduction, itemized
deductions, or federal tax credit that affects the amount of State tax
payable is corrected or otherwise determined by the federal government, the
taxpayer must, within six months after being notified of the correction or
final determination by the federal government, file an income tax return with
the Secretary reflecting the corrected or determined adjusted gross income or
federal tax credit that affects the amount of State tax payable. The Secretary
must propose an assessment for any additional tax due from the taxpayer as
provided in Article 9 of this Chapter. The Secretary must refund any
overpayment of tax as provided in Article 9 of this Chapter. A taxpayer who
fails to comply with this section is subject to the penalties in G.S. 105‑236
and forfeits the right to any refund due by reason of the determination."
PART II. SALES TAX CHANGES
SECTION 5. G.S. 105‑164.3 reads as rewritten:
"§ 105‑164.3. Definitions.
The following definitions apply in this Article:
...
(31) Protective equipment. – Items for human wear and
designed as protection of the wearer against injury or disease or as protection
against damage or injury of other persons or property but not suitable for
general use including breathing masks, face shields, hard hats, and tool belts.
...
(45a) Streamlined Agreement. –
The Streamlined Sales and Use Tax Agreement as amended as of September 17,
2015.December 16, 2016.
...."
SECTION 6. G.S. 105‑164.6(f) reads as rewritten:
"(f) Registration. – A person must obtain a certificate of registration in accordance with G.S. 105‑164.29 under any of the following circumstances:
(1) Before the person engages in business in this State selling or delivering tangible personal property, digital property, or a service for storage, use, or consumption in this State.
(2) If the person is a
facilitator that is liable for tax pursuant to G.S. 105‑164.4F.under
this Article."
SECTION 7. G.S. 105‑164.14A(a) reads as rewritten:
"(a) Refund. – The following taxpayers are allowed an annual refund of sales and use taxes paid under this Article:
...
(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, 2020.
...."
SECTION 8. G.S. 105‑164.29 reads as rewritten:
"§ 105‑164.29. Application for certificate of registration by wholesale merchants, retailers, and facilitators.
(a) Requirement and
Application. – Before a person may engage in business as a retailer or a
wholesale merchant or when a facilitator is liable for tax under G.S. 105‑164.4F,
this Article, the person must obtain a certificate of registration.
To obtain a certificate of registration, a person must register with the
Department. A person who has more than one business is required to obtain only
one certificate of registration for each legal entity to cover all operations
of each business throughout the State. An application for registration must be
signed as follows:
...
(c) Term. – A certificate of
registration is valid unless it is revoked for failure to comply with the
provisions of this Article or becomes void. A certificate issued to a retailer
person who makes taxable sales or a facilitator person liable
for tax under G.S. 105‑164.4F this Article becomes void if,
for a period of 18 months, the retailer or facilitator person files
no returns or files returns showing no sales. A certificate of registration
issued to a seller that contracts with a certified service provider pursuant to
G.S. 105‑164.42I and that is a model one seller as defined in the
Streamlined Agreement does not become void if the certified service provider
files returns for the seller showing no sales for a period for which a
certificate could become void under this subsection.
...."
PART III. EXCISE TAX CHANGES
SECTION 9. G.S. 105‑41(a) reads as rewritten:
"(a) Every individual in this State who practices a profession or engages in a business and is included in the list below must obtain from the Secretary a statewide license for the privilege of practicing the profession or engaging in the business. A license required by this section is not transferable to another person. The tax for each license is fifty dollars ($50.00).
...
(11) A mortician or embalmer
funeral director, an embalmer, or a funeral service licensee licensed
under G.S. 90‑210.25.
...."
SECTION 10. G.S. 105‑113.29 reads as rewritten:
"§ 105‑113.29. Unlicensed place of business.
It shall be unlawful for any person
to maintain a place of business within this State required by this Article to
be licensed to engaged engage in the business of selling or
offering for sale cigarettes or other tobacco products without first
obtaining such licenses."
SECTION 11. G.S. 105‑449.37 reads as rewritten:
"§ 105‑449.37. Definitions; tax liability; application.
(a) Definitions. – The following definitions apply in this Article:
(1) International Fuel Tax
Agreement. – The Articles of Agreement adopted by the International Fuel Tax
Association, Inc., as amended as of July 1, 2013.January 1, 2017.
...
(c) Application. – A motor
carrier who operates a qualified motor vehicle in this State must register
the vehicle submit an application, as provided in this Article Article,
and obtain the appropriate license and decals for the vehicle. The Article
applies to both an interstate motor carrier subject to the International Fuel
Tax Agreement and to an intrastate motor carrier."
SECTION 12. G.S. 105‑449.60 reads as rewritten:
"§ 105‑449.60. Definitions.
The following definitions apply in this Article:
...
(4) Biodiesel provider. – A person who does any of the following:
a. Produces an average of no more than 500,000 gallons of biodiesel per month during a calendar year. A person who produces more than this amount is a refiner.
b. Imports biodiesel outside
the terminal transfer system by means of a transport truck, a railroad tank
car, or a tank wagon.wagon, or a marine vessel.
...
(9a) Bulk storage. – A container or tank used to store bulk purchase of motor fuel or alternative fuel of 42 gallons or more.
...
(14) Diversion. – The movement
of motor fuel from a terminal to a state other than the destination
state indicated on the original bill of lading.
...
(20) Fuel alcohol provider. – A person who does any of the following:
...
b. Imports fuel alcohol outside
the terminal transfer system by means of a transport truck, a railroad tank
car, or a tank wagon.wagon, or a marine vessel.
(21) Gasohol. – A blended fuel composed of gasoline and fuel grade ethanol.
(22) Gasoline. – Any of the following:
...
b. A petroleum product
component of gasoline, such as naptha, reformate, or toluene.toluene,
listed in Treasury Regulation Section 48‑4081‑1(c)(3) as of January
1, 2017, that can be blended for use in a motor fuel.
...
(46) Supplier. – Any of the following:
...
d. A refiner.
(47) System transfer. – Either
of the following:
a. A transfer of motor fuel within the terminal
transfer system.
b. A transfer, by transport truck or railroad tank
car, of fuel grade ethanol.
...."
SECTION 13. G.S. 105‑449.65(b) reads as rewritten:
"(b) Multiple Activity. – A person who is engaged in more than one activity for which a license is required must have a separate license for each activity, unless one of the following subdivisions provides otherwise.
(1) Supplier. – A person who
is licensed as a supplier is considered to have a license as a distributor. A
person who is licensed as a supplier and is a biodiesel provider is
considered to have a license as a blender.
...."
SECTION 14. G.S. 105‑449.69(e) reads as rewritten:
"(e) Export Activity. – An
applicant for a license as an exporter must designate an agent located in North
Carolina for service of process and must give the agent's name and address. An
applicant for a license as an exporter or as a distributor must list on the
application each state to which the applicant intends to export motor fuel
received in this State by means of a transfer that is outside the terminal
transfer system and, if required by a state listed, must be licensed or
registered for motor fuel tax purposes in that state. If a state listed
requires the applicant to be licensed or registered, the applicant must give
the applicant's license or registration number in that state."
SECTION 15. G.S. 105‑449.81 reads as rewritten:
"§ 105‑449.81. Excise tax on motor fuel.
An excise tax at the motor fuel rate is imposed on motor fuel that is:
...
(3b) Fuel grade ethanol or biodiesel fuel if the fuel meets at least one of the following descriptions:
a. Is produced in this State and is removed from the storage facility at the production location.
b. Is imported to this State
outside the terminal transfer system.by means of a transport truck, a
railroad tank car, a tank wagon, or a marine vessel.
c. Repealed by Session Laws 2009‑445, s. 34(a), effective January 1, 2010.
...."
SECTION 16. G.S. 105‑449.115(d)(3) reads as rewritten:
"(d) Duties of Transporter. – A person to whom a shipping document was issued must do all of the following:
...
(3) Deliver motor fuel described in the shipping document to the destination state printed on it unless the person does all of the following:
a. Notifies the Secretary
Secretary, in a manner designated by the Secretary, before
transporting the motor fuel into a state other than the printed destination
state that the person has received instructions since the shipping document was
issued to deliver the motor fuel to a different destination state.
b. Receives from the Secretary
Secretary, in a manner designated by the Secretary, a confirmation
number authorizing the diversion.
c. Writes on the shipping document the change in destination state and the confirmation number for the diversion."
PART IV. EFFECTIVE DATE
SECTION 17. Except as otherwise provided, this act is effective when it becomes law.
In the General Assembly read three times and ratified this the 13th day of June, 2017.
s/ Philip E. Berger
President Pro Tempore of the Senate
s/ Sarah Stevens
Speaker Pro Tempore of the House of Representatives
s/ Roy Cooper
Governor
Approved 5:03 p.m. this 21st day of June, 2017
