GENERAL ASSEMBLY OF NORTH CAROLINA

SESSION 1997

H	1 

HOUSE BILL 1092*

Short Title:  Reduce Farm/Industry Fuel Tax.	(Public)

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Sponsors: Representatives Creech; Alexander, Allred, Arnold, Berry, Bowie, Buchanan, Cansler, Capps, Church, Clary, Cole, Crawford, Davis, Dedmon, Eddins, Fox, Hall, Hightower, Hill, Ives, Kiser, McMahan, Mercer, Mitchell, Moore, Nichols, Russell, Sexton, Smith, Starnes, Tolson, Warwick, and Wilkins.

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Referred to:  Agriculture, if favorable, Finance.

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April 21, 1997

A BILL TO BE ENTITLED
AN ACT TO PHASE DOWN THE SALES TAX ON ELECTRICITY AND PIPED NATURAL GAS USED IN FARMING AND MANUFACTURING.
The General Assembly of North Carolina enacts:
Section 1.  G.S. 105-164.4(a)(1f) reads as rewritten:
"(1f)	The applicable rate provided in the table below applies to the sales price of electricity and piped natural gas described in this subdivision and measured by a separate meter or another device:
Effective Date	  Rate
August 1, 1996	 2.83%
July 1, 1997	 2.67%
July 1, 1998	 2.34%
July 1, 1999	 2%
July 1, 2000	 1.67%
July 1, 2001	 1.34%
July 1, 2002	 1%
a.	Sales of electricity and piped natural gas to farmers to be used by them for any farm purposes other than preparing food, heating dwellings, and other household purposes. The quantity of electricity or gas purchased or used at any one time shall not be a determinative factor as to whether its sale or use is or is not subject to the rate of tax provided in this subdivision.
b.	Sales of electricity and piped natural gas to manufacturing industries and manufacturing plants for use in connection with the operation of the industries and plants other than sales of electricity and gas to be used for residential heating purposes.  The quantity of electricity or gas purchased or used at any one time shall not be a determinative factor as to whether its sale or use is or is not subject to the rate of tax provided in this subdivision.
c.	Sales of electricity and piped natural gas to commercial laundries or to pressing and dry-cleaning establishments for use in machinery used in the direct performance of the laundering or the pressing and cleaning service."
Section 2.  Effective July 1, 2002, G.S. 105-164.4(a)(1c) reads as rewritten:
"(1c)	The rate of one percent (1%) applies to the sales price of the following articles:
a.	Horses or mules by whomsoever sold.
b.	Semen to be used in the artificial insemination of animals.
c.	Sales of fuel and electricity to farmers to be used by them for any farm purposes other than preparing food, heating dwellings and other household purposes.  The quantity of fuel or electricity purchased or used at any one time shall not be a determinative factor as to whether its sale or use is or is not subject to the one percent (1%) rate of tax provided in this subdivision.
d.	Sales of fuel and electricity to manufacturing industries and manufacturing plants for use in connection with the operation of these industries and plants other than sales of fuel or electricity to be used for residential heating purposes.  The quantity of fuel or electricity purchased or used at any one time shall not be a determinative factor as to whether its sale or use is or is not subject to the rate of tax provided in this subdivision.
e.	Sales of fuel and electricity to commercial laundries or to pressing and dry-cleaning establishments for use in machinery used in the direct performance of the laundering or the pressing and cleaning service.
f.	Sales to freezer locker plants of wrapping paper, cartons and supplies consumed directly in the operation of such plant."
Section 3.  Effective July 1, 2002, G.S. 105-164.4(a)(1f) is repealed.
Section 4.  This act does not affect the rights or liabilities of the State, a taxpayer, or another person arising under a statute amended or repealed by this act before the effective date of its amendment or repeal; nor does it affect the right to any refund or credit of a tax that accrued under the amended or repealed statute before the effective date of its amendment or repeal.
Section 5.  Sections 2 and 3 of this act become effective July 1, 2002, and apply to sales made on or after that date.  The remainder of this act becomes effective July 1, 1997, and applies to sales made on or after that date.