GENERAL ASSEMBLY OF NORTH CAROLINA

SESSION 1997

H	1 

HOUSE BILL 125

Short Title:  Roll Back Gas Tax.	(Public)

─────────────────────────────────────── 
Sponsors: Representatives Decker; Allred, Capps, Starnes, and Wood.

─────────────────────────────────────── 
Referred to:  Finance.

─────────────────────────────────────── 

February 12, 1997

A BILL TO BE ENTITLED
AN ACT TO ROLL BACK THE VARIABLE RATE GAS TAX TO THE 1989 LEVEL.
The General Assembly of North Carolina enacts:
Section 1.  G. S. 105-449.80 reads as rewritten:
"§ 105-449.80.  Tax rate.  
The motor fuel excise tax rate is twenty-one and four-tenths cents (21.4¢) a gallon.
			."
Section 2.  G. S. 105-449.39 reads as rewritten:
"§ 105-449.39.  Credit for payment of motor fuel tax.
Every motor carrier subject to the tax levied by this Article is entitled to a credit at the motor fuel rate for tax paid by the carrier on fuel purchased in the State.  To obtain a credit, the motor carrier must furnish evidence satisfactory to the Secretary that the tax for which the credit is claimed has been paid.
If the amount of a credit to which a motor carrier is entitled for a reporting period exceeds the motor carrier's liability for that reporting period, the excess may, in accordance with rules adopted by the Secretary, be refunded to the motor carrier or carried forward and applied to the motor carrier's tax liability for another reporting period.  Before the Secretary allows a motor carrier a refund, the Secretary may audit the motor carrier's records or require the motor carrier to furnish a bond under G.S. 105-449.40.”
Section 3.  G. S. 105-449.45(b) reads as rewritten:
"(b)	Annual Report. – The Secretary may authorize a motor carrier whose estimated annual tax liability under this Article does not exceed two hundred dollars ($200.00) to file an annual report of its operations.  
An annual report covers a fiscal year beginning on July 1 and ending on the following June 30 and is due by July 31 after the end of a fiscal year.  To file an annual report, a motor carrier must apply to the Secretary for permission to file on an annual basis.  An application must be submitted by the date set by the Secretary.  Once granted permission, a motor carrier may continue to file an annual report until notified by the Secretary to file a quarterly report."
Section 4.  G. S. 105-449.106 reads as rewritten:
"§ 105-449.106.  Quarterly refunds for certain local governmental entities, nonprofit organizations, and taxicabs.
(a)	Government and Nonprofits. – A local governmental entity or a nonprofit organization listed below that purchases and uses motor fuel may receive a quarterly refund, for the tax paid during the preceding quarter, at a rate equal to the motor fuel rate less one cent (1¢) per gallon. Any of the following entities may receive a refund under this section:
(1)	A county or a municipal corporation.
(2)	A private, nonprofit organization that transports passengers under contract with or at the express designation of a unit of local government.
(3)	A volunteer fire department.
(4)	A volunteer rescue squad.
(5)	A sheltered workshop recognized by the Department of Human Resources.
An application for a refund allowed under this section must be made in accordance with this Part and must be signed by the chief executive officer of the entity. The chief executive officer of a nonprofit organization is the president of the organization or another officer of the organization designated in the charter or bylaws of the organization.
(b)	Taxi. – A person who purchases and uses motor fuel in a taxicab, as defined in G.S. 20-87(1), while the taxicab is engaged in transporting passengers for hire, or in a bus operated as part of a city transit system that is exempt from regulation by the North Carolina Utilities Commission under G.S. 62-260(a)(8), may receive a quarterly refund, for the tax paid during the preceding quarter, at a rate equal to the motor fuel rate less one cent (1¢) per gallon. An application for a refund must be made in accordance with this Part."
Section 5.  G.S. 105-449.107 reads as rewritten:
"§ 105-449.107.  Annual refunds for off-highway use and use by certain vehicles with power attachments.
(a)	Off-Highway. – A person who purchases and uses motor fuel for a purpose other than to operate a licensed highway vehicle may receive an annual refund for the tax the person paid on fuel used during the preceding calendar year at a rate equal to the motor fuel rate less one cent (1¢) per gallon. An application for a refund allowed under this section must be made in accordance with this Part.
(b)	Certain Vehicles. – A person who purchases and uses motor fuel in one of the vehicles listed below may receive an annual refund for the amount of fuel consumed by any of the following vehicles:
(1)	A concrete mixing vehicle.
(2)	A solid waste compacting vehicle.
(3)	A bulk feed vehicle that delivers feed to poultry or livestock and uses a power takeoff to unload the feed.
(4)	A vehicle that delivers lime or fertilizer in bulk to farms and uses a power takeoff to unload the lime or fertilizer.
(5)	A tank wagon that delivers alternative fuel, as defined in G.S. 105-449.130, or motor fuel or another type of liquid fuel into storage tanks and uses a power takeoff to make the delivery.
The refund rate shall be computed by subtracting one cent (1¢) from the motor fuel rate and multiplying the difference by thirty-three and one-third percent (33 1/3%). An application for a refund allowed under this section shall be made in accordance with this Part. This refund is allowed for the amount of fuel consumed by the vehicle in its mixing, compacting, or unloading operations, as distinguished from propelling the vehicle, which amount is considered to be one-third of the amount of fuel consumed by the vehicle."
Section 6.  Transitional Provisions. – 
(a)	Every distributor of motor fuel and every provider of alternative fuel must inventory all fuel that is on hand or in the person's possession as of 12:01 a.m. on July 1, 1997, and must report the results of the inventory to the Secretary of Revenue.  The report of inventory must be made on a form provided by the Secretary and is due by August 1, 1997.  As soon as practicable after receiving a timely report under this subsection, the Secretary of Revenue shall pay the taxpayer a refund of one and two-tenths cents (1.2¢) per gallon of reportable inventory.
(b)	Notwithstanding the provisions of G.S. 105-449.39, as amended by this act, a credit for tax paid before the effective date of this act shall be at the rate provided in G.S. 105-449.39 before its amendment by this act.
(c)	Notwithstanding the provisions of G.S. 105-449.107, as amended by this act, the refund rate for the 1997 calendar year shall be one-half of the applicable rate provided in G.S. 105-449.107 before its amendment by this act plus one-half of the applicable rate provided in G.S. 105-449.107 as amended by this act.
Section 7.  Section 3 of this act becomes effective July 1, 1998, and applies to annual reports due on or after that date.  Section 4 of this act becomes effective October 1, 1997, and applies to refund applications due on or after that date.  The remainder of this act becomes effective July 1, 1997.