GENERAL ASSEMBLY OF NORTH CAROLINA

SESSION 1997

H	3 

HOUSE BILL 939
Committee Substitute Favorable 4/28/97
Committee Substitute #2 Favorable 5/12/97

Short Title:  Drug Tax For CrimeStopper.	(Public)

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Sponsors:

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Referred to:  

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April 14, 1997

A BILL TO BE ENTITLED
AN ACT TO EARMARK TEN PERCENT OF THE DRUG TAX PROCEEDS FOR REWARDS PAID FOR TIPS REGARDING CRIMES PURSUANT TO LOCAL CRIMESTOPPERS PROGRAMS.
The General Assembly of North Carolina enacts:
Section 1. G.S. 105-113.113 reads as rewritten:
"§ 105-113.113.  Use of tax proceeds.
(a)	Special Account. – The Secretary shall credit the proceeds of the tax levied by this Article to a special nonreverting account, to be called the State Controlled Substances Tax Account, until the tax proceeds are unencumbered. The Secretary shall remit the unencumbered tax proceeds as provided in this section on a quarterly or more frequent basis. Tax proceeds are unencumbered when either of the following occurs:
(1)	The tax has been fully paid and the taxpayer has no current right under G.S. 105-267 to seek a refund.
(2)	The taxpayer has been notified of the final assessment of the tax under G.S. 105-241.1 and has neither fully paid nor timely contested the tax under G.S. 105-241.1 through G.S. 105-241.4 or G.S. 105-267.
(b)	Law Enforcement. – The Secretary shall remit seventy-five percent (75%) of the part of the unencumbered tax proceeds that was collected by assessment to the State or local law enforcement agency that conducted the investigation of a dealer that led to the assessment. If more than one State or local law enforcement agency conducted the investigation, the Secretary shall determine the equitable share for each agency based on the contribution each agency made to the investigation. The Secretary shall credit the remaining unencumbered tax proceeds to the General Fund.
(c)	CrimeStoppers Rewards. – The Secretary shall distribute two-fifths of the remaining unencumbered tax proceeds among the counties of the State on a per capita basis according to the most recent annual population estimates certified to the Secretary by the State Planning Officer.  A county may use funds distributed to it under this subsection only to pay rewards to individuals for information provided to assist investigation of crimes pursuant to a local program of Crime Stoppers, Inc., or CrimeStoppers, Inc.
(d)	General Fund. – The Secretary shall credit the remaining unencumbered tax proceeds to the General Fund.
(e)	Refunds. – The refund of a tax that has already been distributed shall be drawn initially from the State Controlled Substances Tax Account. The amount of refunded taxes that had been distributed shall be subtracted from succeeding distributions from the Account to the agency, county, or fund to which the refunded taxes had been distributed."
Section 2.  This act becomes effective July 1, 1997, and applies to taxes collected and assessments levied on or after that date.