A BILL TO BE ENTITLED
AN ACT To authorize scotland county to levy an additional one‑cent local sales and use tax to be used for educational Expenses only.
The General Assembly of North Carolina enacts:
SECTION 1.  This act applies to Scotland County only.  Notwithstanding any other provision of law, a tax under Article 45 of Chapter 105 of the General Statutes, as enacted by this act, may not be effective at any time in which a supplemental school tax authorized under Chapter 707 of the 1963 Session Laws is in effect.
SECTION 2.  Chapter 105 of the General Statutes is amended by adding a new Article to read:
"Article 45.
"Second One-Cent (1¢) Local Government Sales and Use Tax.
"§ 105-525.  Short title.
This Article is the Second One-Cent (1¢) Local Government Sales and Use Tax Act.
"§ 105-526.  Limitations.
This Article applies only to counties that levy the first one-cent (1¢) local 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, the second one-half cent (1/2¢) local sales and use tax under Article 42 of this Chapter, and the third one-half cent (1/2¢) local sales and use tax under Article 44 of this Chapter.
"§ 105-527.  Levy.
(a)	Levy. – The board of commissioners of a 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. Before adopting a resolution under this section, the board of commissioners must give at least 10 days' public notice of its intent to adopt the resolution and must hold a public hearing on the issue of adopting the resolution.
(b)	Effective Date. – A tax levied under this Article may not become effective before January 1, 2003.
"§ 105-528.  Administration of taxes.
Except as provided in this Article, the adoption, levy, collection, administration, and repeal of these additional taxes must 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 exempt from tax pursuant to G.S. 105-164.13B.
"§ 105-529.  Distribution and use of taxes.
(a)	Distribution. – The Secretary must, on a quarterly basis, allocate to each taxing county the net proceeds of the tax collected in that county under this Article. 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 the net proceeds of these taxes among the taxing counties in proportion to the amount of taxes collected in each county under this Article in that month and shall include them in the quarterly distribution.
(b)	Use. – The proceeds of a tax levied under this Article may be used only for the public school local current expense fund as defined in G.S 115C-426(e) and for public school capital outlay purposes as defined in G.S. 115C-426(f)."
SECTION 3.  G.S. 105‑529(a), as enacted by this act, reads as rewritten:
"(a)	Distribution. – The Secretary must, on a monthly basis, allocate to each taxing county the net proceeds of the tax collected in that county under this Article. 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 the net proceeds of these taxes among the taxing counties in proportion to the amount of taxes collected in each county under this Article in that month and shall include them in the monthly distribution."
SECTION 4.  A tax levied under Article 45 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 45 of Chapter 105 of the General Statutes.
SECTION 5.  Section 3 of this act becomes effective July 1, 2003.  The remainder of this act is effective when it becomes law.