GENERAL ASSEMBLY OF NORTH CAROLINA

SESSION 1999

H	1 

HOUSE BILL 624

Short Title:  Duplin Local Sales Tax.	(Local)

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Sponsors: Representative Tucker.

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Referred to:  Rules, Calendar and Operations of the House.

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March 29, 1999

A BILL TO BE ENTITLED
AN ACT TO AUTHORIZE DUPLIN COUNTY TO LEVY A ONE-CENT LOCAL SALES TAX FOR SPECIFIC CAPITAL PROJECTS.
The General Assembly of North Carolina enacts:
Section 1.  This act applies only to Duplin County.
Section 2.  Subchapter VIII of Chapter 105 of the General Statutes is amended by adding a new Article to read:
"ARTICLE 44.
"Second One-Cent (1¢) Local Government Sales and Use Tax.
"§ 105-515.  Short title.
This Article is the Second One-Cent (1¢) Local Government Sales and Use Tax Act.
"§ 105-516.  Purpose.
This Article gives the counties of this State an opportunity to obtain a source of revenue with which to meet their growing financial needs.  It provides all counties of the State that are subject to this Article with authority to levy one percent (1%) sales and use taxes.
"§ 105-517.  Limitations.
This Article applies only to counties that levy the first one-cent (1¢) sales and use tax under Article 39 of this Chapter or under Chapter 1096 of the 1967 Session Laws, the first one-half cent (1/2¢) local sales and use tax under Article 40 of this Chapter, and the second one-half cent (1/2¢) local sales and use tax under Article 42 of this Chapter.
"§ 105-518.  Levy of tax.
Before levying the tax authorized by this Article, the board of commissioners must hold a public hearing on the question after at least 10 days' notice of the hearing.   After the public hearing, the board of commissioners of the county may, by resolution, levy one percent (1%) local sales and use taxes in addition to any other State and local sales and use taxes levied pursuant to law.  Except as provided in this Article, the adoption, levy, collection, administration, and repeal of these additional taxes shall be in accordance with Article 39 of this Chapter.
A tax levied under this Article does not apply to the sales price of food that is not otherwise exempt from tax pursuant to G.S. 105-164.13 but would be exempt from the State sales and use tax pursuant to G.S. 105-164.13 if it were purchased under the Food Stamp Program, 7 U.S.C. § 51.
"§ 105-519.  Distribution and use of tax.
(a)	Distribution. – The Secretary must, on a quarterly basis, distribute to each taxing county the net proceeds of the tax levied under this Article by that county.  If the Secretary collects taxes under this Article in a month and the taxes cannot be identified as being attributable to a particular taxing county, the Secretary must allocate these taxes among the taxing counties in proportion to the amount of taxes collected in each county under this Article in that month and must include them in the quarterly distribution.
(b)	Use. – A county may use the proceeds of a tax levied under this Article only for capital outlay for a senior citizen-adult day care center and an agri-community complex, and to retire debt incurred for these purposes.
"§ 105-520.  Expiration.
A tax levied under this Article expires on the first day of the first month after all expenses and debt for the purposes authorized in G.S. 105-520 have been retired. A county's authorization to levy a tax under this Article also expires at that time.  The county shall notify the Secretary of Revenue at least 90 days before the effective date of the repeal or expiration of a tax levied under this Article.  The expiration of a tax pursuant to this Article does not affect the rights or liabilities of a county, a taxpayer, or another person arising under the expired tax; nor does it affect the right to any refund or credit of a tax that would otherwise have been available under the expired tax before its expiration.
If the Secretary receives a valid request for a refund of a tax levied under this Article after the tax has expired and the net proceeds have been distributed, the Secretary shall draw the refund from the taxing county's share of the net proceeds of the tax it levies under Article 39 of this Chapter or under Chapter 1096 of the 1967 Session Laws, as applicable."
Section 3.  This act is effective when it becomes law.
Section 4.  A tax levied under Article 44 of Chapter 105 of the General Statutes, as enacted by this act, does not apply to construction materials purchased to fulfill a lump-sum or unit-price contract entered into or awarded before the effective date of the levy or entered into or awarded pursuant to a bid made before the effective date of the levy when the construction materials would otherwise be subject to the tax levied under Article 44 of Chapter 105 of the General Statutes.