GENERAL ASSEMBLY OF NORTH CAROLINA

SESSION 1999

H	1 

HOUSE BILL 56*

Short Title:  Eliminate Stamps for Deed Tax.	(Public)

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Sponsors: Representatives Hill, Cansler, Capps, Gray, Neely, Ramsey, C. Wilson; Buchanan, Church, Rayfield, Russell, and Starnes.

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Referred to:  Finance.

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February 10, 1999

A BILL TO BE ENTITLED
AN ACT TO ELIMINATE THE USE OF STAMPS TO INDICATE WHETHER THE EXCISE TAX ON CONVEYANCES HAS BEEN PAID AND TO MAKE THE PENALTIES THAT APPLY TO THIS TAX THE SAME AS FOR OTHER TAXES.
The General Assembly of North Carolina enacts:
Section 1.  Article 8E of Chapter 105 of the General Statutes reads as rewritten:
"ARTICLE 8E.
"Excise Tax on Conveyances.
"§ 105-228.28. Scope.
This Article applies to every person conveying an interest in real estate located in North Carolina other than a governmental unit or an instrumentality of a governmental unit.
"§ 105-228.29. Exemptions.
This Article does not apply to any of the following transfers of an interest in real property:
(1)	By operation of law.
(2)	By lease for a term of years.
(3)	By or pursuant to the provisions of a will.
(4)	By intestacy.
(5)	By gift.
(6)	If no consideration in property or money is due or paid by the transferee to the transferor.
(7)	By merger or consolidation.
(8)	By an instrument securing indebtedness.
"§ 105-228.30.  Imposition of excise tax; distribution of proceeds.
(a)	An excise tax is levied on each instrument by which any interest in real property is conveyed to another person. The tax rate is one dollar ($1.00) on each five hundred dollars ($500.00) or fractional part thereof of the consideration or value of the interest conveyed. The transferor must pay the tax to the register of deeds of the county in which the real estate is located before recording the instrument of conveyance.  If the instrument transfers a parcel of real estate lying in two or more counties, however, the tax must be paid to the register of deeds of the county in which the greater part of the real estate with respect to value lies.
(b)	The register of deeds of each county must remit the proceeds of the tax levied by this section to the county finance officer. The finance officer of each county must credit one-half of the proceeds to the county's general fund and remit the remaining one-half of the proceeds, less the county's allowance for administrative expenses, to the Department of Revenue on a quarterly basis. A county may retain two percent (2%) of the amount of tax proceeds allocated for remittance to the Department of Revenue as compensation for the county's cost in collecting and remitting the State's share of the tax. Of the funds remitted to it pursuant to this section, the Department of Revenue must credit seventy-five percent (75%) to the Parks and Recreation Trust Fund established under G.S. 113-44.15 and twenty-five percent (25%) to the Natural Heritage Trust Fund established under G.S. 113-77.7. 
"§ 105r 
"§ 105-228.32. Duties of register of deeds; duty of person presenting instrument for registration.
The register of deeds of each county must, before recording an instrument subject to tax under this Article, collect the tax and mark the instrument to indicate that the tax has been paid.  The person presenting an instrument for registration must indicate the correct amount of tax due on the face of the instrument.
"§ 105-228.33. Taxes recoverable by action.
A county may recover unpaid taxes under this Article in an action in the name of the county brought in the superior court of the county.  The action may be filed if the taxes remain unpaid more than 30 days after the register of deeds has demanded payment.  In such actions, costs of court shall include a fee to the county of twenty-five dollars ($25.00) for expense of collection. 
"§ 
"§ 105-228.35. Administrative provisions.
The provisions of Article 9 of this Chapter apply to this Article.
"§ 105A."
Section 2.  The Secretary of Revenue may withhold from collections under Part 2 of Article 4 of Chapter 105 of the General Statutes for the 1999-2001 fiscal biennium the amount necessary to reimburse eligible counties for the costs of this act as required by this section.  A county is eligible for reimbursement under this section if, before July 1, 1999, it used only stamps issued under Article 8E of Chapter 105 of the General Statutes to collect the conveyance tax imposed in that Article, and did not purchase or lease meters or other equipment to provide a substitute mechanism for collecting the conveyance tax before July 1, 1999.  If an eligible county purchases or leases meters or other equipment during the 1999-2000 fiscal year to provide a substitute mechanism for collecting the conveyance tax pursuant to this act, the Department of Revenue shall, upon request, reimburse the county for the costs it paid during the 1999-2000 fiscal year to purchase or lease the equipment, not to exceed three thousand five hundred dollars ($3,500) per eligible county.  In order to be reimbursed under this section, an eligible county must request reimbursement within six months after purchasing or leasing the equipment and must provide the Secretary of Revenue any information and documentation the Secretary requires to substantiate the request.
Section 3.  Prosecutions for offenses committed before the effective date of this act are not abated or affected by this act, and the statutes that would be applicable but for this act remain applicable to those prosecutions.
Section 4.  Section 1 of this act becomes effective July 1, 2000.  The remainder of this act is effective when it becomes law.