A BILL TO BE ENTITLED
AN ACT to RAISe the excise tax on CIGARETTEs FROM FIVE CENTS TO THIRTY CENTS A PACK; to RESTORe the previous rate of excise tax on LIQUOR; and to RAISe BEER AND WINE TAXES.
The General Assembly of North Carolina enacts:
SECTION 1.(a)  G.S. 105‑113.5 reads as rewritten:
"§ 105‑113.5.  Tax on cigarettes.
A tax is levied on the sale or possession for sale in this State, by a distributor, of all cigarettes at the rate of  one and one‑half cents (1 1/2¢) per individual cigarette.
This tax does not apply to any of the following:
(1)	Sample cigarettes distributed without charge in packages containing five or fewer cigarettes.
(2)	Cigarettes in a package of cigarettes given without charge by the manufacturer of the cigarettes to an employee of the manufacturer who works in a factory where cigarettes are made, if the cigarettes are not taxed by the federal government."
SECTION 1.(b)  This section becomes effective July 1, 2002.
SECTION 2.(a)  G.S. 105‑113.80(c) reads as rewritten:
"(c)	Liquor. – An excise tax of  twenty‑eight percent (28%) is levied on liquor sold in ABC stores. Pursuant to G.S. 18B‑804(b), the price of liquor on which this tax is computed is the distiller's price plus (i) the State ABC warehouse freight and bailment charges, and (ii) a markup for local ABC boards."
SECTION 2.(b)  This section becomes effective October 1, 2002.
SECTION 3.(a)  Part 4 of Article 2C of Chapter 105 of the General Statutes is amended by adding a new section to read:
"§ 105-113.80A. Surtax on beer and wine.
(a)	Surtax. – In addition to the excise taxes on beer and wine imposed in G.S. 105‑113.80(a) and (b), every taxpayer required to file a return under those subsections must pay the surtax levied by this section. The surtax is due at the time prescribed for paying the excise taxes under this Article. The amount of the surtax is as follows:
(1)	Beer. – An additional excise tax of fifty‑three cents (53¢) per gallon is levied on the sale of malt beverages.
(2)	Wine. – An additional excise tax of twenty‑one cents (21¢) per liter is levied on the sale of unfortified wine, and an additional excise tax of twenty‑four cents (24¢) per liter is levied on the sale of fortified wine.
(b)	Distribution. – The surtax levied by this section is not subject to the distribution under G.S. 105‑113.81A or G.S. 105‑113.82. The Secretary must credit the proceeds of the surtax levied by this section to the General Fund."
SECTION 3.(b)  In order to pay for its costs of postage, printing, and computer programming to implement this section, the Department of Revenue may withhold not more than seventy‑five thousand dollars ($75,000) from collections under this section during the 2002‑2003 fiscal year.
SECTION 3.(c)  This section becomes effective August 1, 2002.  Notwithstanding G.S. 105‑113.83, the payment of the surtax imposed by this section for August 2002 is due when the taxpayer remits the excise tax under G.S. 105‑113.80 for September 2002.
SECTION 4.  Except as otherwise provided in this act, this act is effective when it becomes law.