GENERAL ASSEMBLY OF NORTH CAROLINA
SESSION 1999

SESSION LAW 1999-28
HOUSE BILL 56

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. 
"

"§ 105-228.32. Instrument must be marked to reflect tax paid.
A person who presents an instrument for registration must report to the Register of Deeds the amount of tax due.  Before the instrument may be recorded, the Register of Deeds must collect the tax due and mark the instrument to indicate that the tax has been paid and the amount of the tax paid.
"§ 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.
"
." 
Section 2.  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 3.  Section 1 of this act becomes effective July 1, 2000.  The remainder of this act is effective when it becomes law.
In the General Assembly read three times and ratified this the 12th day of April, 1999.

s/	Marc Basnight
President Pro Tempore of the Senate

s/	James B. Black
Speaker of the House of Representatives

s/	James B. Hunt, Jr.
Governor

Approved 2:15 p.m. this 22nd day of April, 1999